On Wednesday May 26, 2021, the government adopted another large package of changes in VAT settlements. It is about the so-called Slim VAT 2. The amendment will affect car-related expenses and the right to tax deductions. The changes will also affect the rules for settling bad debt relief in VAT. The amendment will additionally introduce changes to the Banking Law.
It is about a draft act amending the act on tax on goods and services and the banking law. Initial assumptions were published on Wednesday in the list of legislative works of the government under the number UD221.
As emphasized by the Ministry of Finance, the author of the changes, the Slim VAT 2 package is in line with the demands of entrepreneurs addressed to the Prime Minister and to the Ministry of Finance in connection with the need to counteract the negative socio-economic effects of the COVID-19 pandemic.
It is about a draft act amending the act on tax on goods and services and the banking law. Initial assumptions were published on Wednesday in the list of legislative works of the government under the number UD221.
As emphasized by the Ministry of Finance, the author of the changes, the Slim VAT 2 package is in line with the demands of entrepreneurs addressed to the Prime Minister and to the Ministry of Finance in connection with the need to counteract the negative socio-economic effects of the COVID-19 pandemic.
What changes in Slim VAT 2?
The announced assumptions show that the changes to the VAT Act will concern:
- Introducing a regulation which, in the case of the export of goods or the intra-Community supply of goods, would clearly define which delivery should be assigned the shipment or transport,
- Resignation from the condition making the deduction of input tax in the same period in which the output tax was shown, on the presentation of the output VAT within three months from the end of the month in which the tax obligation arose – implementation into the Polish legal system of the judgment of the Court of Justice of the European Union in the case C -895/19 A.,
- Enabling the taxpayer settling the tax on import of goods directly in the tax declaration to correct the declaration in a situation where the taxpayer did not settle the tax in the correct amount in the original declaration, bad debt relief,
- Modification of the definition of “Member State” and “territory of the European Union”,
- 100 percent deductions from car expenses (extension of the deadline for submitting information on incurring the first expenditure on a motor vehicle used only for the taxpayer’s business activity), in connection with the moment of submitting SAF for the completed period,
- VAT deduction after the expiry of the deduction deadline “on an ongoing basis” – extension of the number of accounting periods in which the taxpayer will be able to make a deduction by correcting the declaration,
- Admission – optional – the possibility of submitting a consistent declaration of the supplier and the buyer on the choice of real estate taxation in a notarial deed,
- Regulating the issue of releasing funds transferred from a closed VAT account to the so-called technical account,
- Introducing the possibility of issuing consent for the release of funds from the VAT account if the tax arrears held by the taxpayer have been deferred or divided into installments
Source prawo.pl
