Split Payments – Measure against Fraud Practices
The Polish Ministry of Finance published a draft law introducing split payments into the Polish VAT law as of 01/01/2018. Pursuant to the draft law, split payment will be applied on a voluntary basis. Customers will have a choice to pay the VAT amount into a dedicated bank account of the seller while benefits for customers are linked with that split payments system.Companies VAT-registered in Poland should consider the impact on their cash flow if their customers would opt for the split payments system.
New reporting obligation
From 01/07/2016, the Standard Audit File for Tax, an electronic reporting tool for tax authorities, will be introduced in Poland. Tax authorities - with the company’s consent - will be able to electronically download company’s transactions [notably VAT sales and purchases] for review.
Local reverse charge on specific goods
A new reverse charge mechanism is applicable for domestic sales of electronic devices [tablets, laptops, mobile phones and video game console] provided the total value of the transaction exceeds PLN 20.000.
Automatic VAT deregistration
Since 01/01/2017, Polish VAT number of foreign companies having no transactions in Poland during six months or two consecutive quarters will be automatically unregistered by the Polish VAT authorities.
General Power of Attorney
Polish Ministry of Finance published a draft of the new layout [PP0-1 and OPO-1] of the general Power of Attorney [authorizing to act in all tax and other matters within the jurisdiction of the tax authorities]. These forms will have to be submitted to the tax authorities electronically via the Tax Portal [www.portalpodatkowy.mf.gov.pl] or through the Central Registration and Information on Economic Activity [CEIDG].
New additional VAT filing requirement
As from 01/07/2015, a new sales listing is applicable to report all transactions subject to local reverse charge.
Intra-Community acquisitions
A deduction of input VAT will be possible provided there is also output VAT reported on the VAT return for the filing period in which the VAT issue arises. When output VAT is not reported within three months of the VAT issue, it will no longer be possible to retrospectively report the input VAT.
Update of the penalties system
The penalty system will be updated with new penalties of up to 30% of the VAT due. This penalty will apply whenever a business requests an excessive VAT refund or makes a smaller payment than the applicable amount for the relevant period. The penalties can go up to 100% where there is no underlying supply on an invoice issued. These penalties will apply if the tax office uncovers these inconsistencies during an audit.
Reverse charge
The scope of the reverse charge mechanism is being extended to construction services that are provided by foreign subcontractors and Polish taxable businesses.
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