Source prawo.pl / Government Legislative Process
The Government Legislation Center presented a draft amendment to the act on tax on goods and services. It is about a package of changes named Slim VAT by the Ministry of Finance. The new rules will apply from January 2021.
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Slim VAT, i.e. another draft amendment to the VAT Act
New regulations from January 1, 2021
This week, a draft law amending the VAT Act was published. According to the draft, most of the provisions will enter into force on January 1, 2021. Below we present a brief summary of the most interesting elements of the amendment.
Recently, the Ministry of Finance has published information about the planned simplification of VAT settlement – i.e. the so-called Slim VAT package (short for simple, local and modern VAT). The consequence of the announcement is the draft changes published this week, which concern not only the introduction of simplifications, but also the provisions on binding rate information (WIS) and significant changes to the TAX FREE travel tax refund system .
Simplifications for taxpayers
1. | Making downgrading adjustments |
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2. | Exchange rate conversion rules: |
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3. | Changes regarding the split payment mechanism and the VAT account: |
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The other simplifications concern, among others: | |
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WIS-related changes
The draft also includes changes to the WIS regulations and introduces regulations similar to those applicable to individual interpretations or binding tariff information (BTI). For example, it will no longer be possible to issue a WIS in the case of pending tax proceedings, control or a decision or ruling in this respect. This provision will apply to proceedings initiated and not completed before the entry into force of the new provisions.
In addition, the WIS are to be valid for 3 years from their issuance, as is the case today. WIS, which will be issued before the entry into force of the draft act (before January 1, 2021), will be valid for 3 years from the date of entry into force of these regulations (i.e. until December 31, 2023).
Currently, taxpayers apply to the system of tax refund for travelers the provisions in force since 1999, which provide for paper circulation of documents and the use of stamps by the customs and tax office. Such regulations could cause abuse by individuals using the return and uncertainty on the part of sellers.
The legislator provides that from January 1, 2022, the travel tax refund system (the so-called TAX FREE) will be an electronic billing system. Sellers using this system will be able to issue documents at PUESC, keep records there and electronically receive confirmation of the export of goods. The requirements for tax refund entities are also to be slightly changed.
Importantly, when selling goods in the TAX FREE system, from January 1, 2022, the obligation to use online cash registers will be introduced.
The draft of changes is currently at the stage of giving opinions and its present shape will probably still change. Nevertheless, due to the wide range of proposed changes and relatively short vacatio legis, taxpayers can already prepare for the changes.
In particular, taxpayers can now verify whether the arrangements with counterparties regarding rebates and reducing adjustments are properly documented, or, for example, consider a new approach to the method of currency conversion (the current approach vs. the application of the principles resulting from income tax regulations)