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Will the introduction of the cash method in PIT result in further changes in SLIM VAT?

  • The introduction of cash-based PIT for entrepreneurs is expected by small companies in the hopes of solving issues with unpaid invoices.
  • The Ministry of Finance stated that currently, about 93% of taxpayers in Poland can choose the cash-based VAT method, but only about 1 in 8 actually use it.
  • The cash-based VAT method involves calculating VAT based on paid invoices, shifting the VAT settlement to the payment date.
  • Quarterly settlements are available for taxpayers using the cash-based method, allowing them more time to receive payment before settling VAT with the tax office.
  • An alternative to cash-based VAT is a bad debt relief for invoices unpaid within 90 days of the payment deadline.

Source: ksiegowosc.infor.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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