Changes in the Polish VAT Act – SLIM VAT 2 – Bad debt, Triangulation, Deduction VAT on I/C Acquisitions

SLIM VAT 2 is another set of changes that are supposed to simplify the VAT settlements in Poland. The first one was implemented as of 1 January 2021. New regulations include, among others:
→ The extension of time in which the bad debt relief can be claimed from two to three years and deletion of certain conditions which shall be met to claim this relief in accordance with ECJ’s judgement in case C-335/19.
→ There will be more refining changes to the triangular transaction scheme. The purpose is to introduce rules which, in cases of exports or intra-community supplies, will clearly specify which supply is the one to which the dispatch or transport should be ascribed where the transport is arranged not by a customer who also supplies the goods or an intermediary operator, but by the first supplier (first operator in the chain) or the last customer (last operator in the chain).
→ Having been challenged by ECJ in case C-895/19, the regulations on the use of the so-called “spaced array” (szyk rozstawny) for deduction of VAT on intra-community acquisitions and imports (input VAT recognised separately from output tax) are going to be repealed.
SLIM VAT 2 entered into force on 1 October 2021; the “spaced array” regulations already became effective one day after publication (7 September 2021)

Source

• WTS
• WTS – 2

See also

• ECJ C-335/19 (E. Spzoo) – Judgment – No conditions on customer position can be imposed on the VAT Adjustment on Bad debts
• ECJ C-895/19 (A. (Exercice du droit à déduction)) – Judgment – Timing of exercising right to deduct VAT on intra-community acquisitions of goods

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