Extending the deadline to deduct VAT on an ongoing basis to four months, increasing the limit on gifts of low value, and simplification for exporters – these are just some of the changes included in the SLIM VAT package. The new regulations are to enter into force in the first half of 2021.
Summary:
- Simple invoicing, facilitation for exporters, common exchange rates with income tax, financial benefits – these are four areas in which changes will occur.
- SLIM VAT is a simplification package which is a response to the expectations of entrepreneurs reported to the Ministry of Finance.
- SLIM VAT is the result of an audit of regulations conducted by the Ministry of Finance, aimed at adjusting them to the conditions of small and medium-sized business
Highlights:
- correcting invoices in-minus (therefore lowering taxable amount) will only require proof that new transactional conditions have been agreed (now a supplier must, as a matter of principle, possess a proof that a correcting invoice has been delivered to a buyer/recipient of a service)
- correcting invoices in-plus will always be possible in a tax period when a correcting invoice is issued (as long as new circumstances occur after a supply covered by the said invoice)
- exports; advance payments for export supplies will be subject to zero rating if goods are sent/transported within 6 months from the date of such an advance payment (currently: 2 months)
- exchange rates; a taxpayer will be allowed to use the same exchange rate rules for VAT and income taxes
- a taxpayer will be entitled to deduct input VAT within 4 months (currently: 2 months) from the date of purchase of goods/receipt of a service in a current tax return.
- the gifts of low-value may reach the value of 20 PLN (currently 10 PLN). Only the gifts above this increased value will be deemed taxable supplies
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