Draft VAT Act Amendments: Greater Flexibility for Export Evidence and Digitalisation of Import Procedures

Summary

• Broader proof for 0% VAT on exports: Removal of the strict requirement for customs-confirmed export documents allows alternative evidence (transport, postal, or foreign customs documents) to support the 0% rate.
• Alignment and simplification: Changes extend rules to both direct and indirect exports, removing outdated provisions and reducing interpretative disputes.
• Digitalisation and compliance safeguards: Mandatory electronic import declarations and stricter conditions for advance payments aim to modernise VAT processes and mitigate fraud risks.

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Article

1. Relaxation of Evidence Requirements for Applying the 0% VAT Rate on Exports

The draft amendments introduce a fundamental shift in how taxpayers may evidence exports of goods outside the European Union. Under current rules, the application of the 0% VAT rate is strictly linked to possession of a document confirming export issued by the competent customs authority.

The proposal removes this condition from Article 2(8) of the VAT Act, thereby aligning domestic legislation more closely with EU VAT principles under the VAT Directive (Directive 2006/112/EC, Article 146), which does not prescribe a single type of proof but instead requires that the export be substantiated by adequate evidence.

👉 EU legal framework:

• https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006L0112

This change will significantly broaden the types of documentation that can support the 0% VAT rate, reflecting commercial realities and modern logistics processes.

2. Extension of Rules to Direct and Indirect Exports

The amendment to Article 41(4) and (5) removes the reference to Article 2(8)(a), effectively extending the application of these provisions to both:

• Direct exports (supplier arranges transport), and
• Indirect exports (customer arranges transport).

As a consequence, Article 41(11)—which specifically governs indirect exports—becomes redundant and is proposed for repeal.

This structural simplification reduces fragmentation in the VAT treatment of exports and eliminates technical distinctions that have historically led to disputes between taxpayers and tax authorities.

3. Introduction of Alternative Evidence (New Article 41(6c))

A key innovation is the introduction of Article 41(6c), which explicitly recognises alternative forms of evidence confirming that goods have been exported outside the EU. These include:

• Transport documents from carriers or freight forwarders (including electronic systems), confirming delivery outside the EU;
• Postal operator documentation, including electronic confirmations of delivery;
• Foreign customs documentation, evidencing import and clearance outside the EU, accompanied by a written statement from the purchaser confirming delivery.

This provision reflects evolving jurisprudence of the Court of Justice of the European Union (CJEU), which consistently emphasises substance over formal requirements in VAT matters, provided that material conditions are fulfilled.

👉 Example of CJEU approach to evidence:

• https://curia.europa.eu

By codifying alternative evidence, the proposal aims to:

• Reduce formalistic denials of the 0% rate;
• Facilitate cross-border trade;
• Decrease administrative litigation.

4. Stricter Conditions for 0% VAT on Advance Payments

To balance the increased flexibility, the draft introduces a new anti-abuse condition in Article 41(9a).

Taxpayers will only be allowed to apply the 0% VAT rate to advance payments received before export where they:

• Have been registered as an active VAT taxpayer for at least 12 months, prior to filing the relevant VAT return.

This measure targets potential fraud risks arising from the acceptance of broader evidence, especially in cases where exports are not yet completed.

It reflects a broader EU trend toward combining procedural flexibility with enhanced compliance safeguards, particularly in the context of digital reporting and real-time VAT control systems.

5. Mandatory Electronic Submission of Import Declarations

The draft also proposes amendments to Article 33b of the VAT Act, introducing a requirement that import declarations be submitted exclusively via electronic communication.

This change:

• Aligns VAT procedures with modern customs systems and the EU Customs Data Model (CDM);
• Enhances efficiency and traceability;
• Supports integration with digital VAT reporting frameworks.

👉 EU customs digitalisation initiatives:

• https://taxation-customs.ec.europa.eu

The statutory authorisation in Article 33b(5) will be adapted accordingly to reflect this mandatory digital approach.

6. Adjustments to the USZ Procedure (Import VAT Settlement)

Further amendments concern the USZ procedure (deferred accounting for import VAT), particularly in light of upcoming changes to customs regulations effective 1 July 2026.

Key updates include:

• Specification of the content of VAT returns submitted under the USZ procedure;
• Clarification of the competent tax authority receiving such returns;
• Adaptation of record-keeping requirements to ensure compatibility with updated customs frameworks.

These changes are intended to ensure consistency between VAT and customs processes, reducing compliance burdens for businesses operating cross-border supply chains.

7. Entry into Force and Legislative Status

• Status: Draft at the consultation/opinion stage as of 15 April 2026.
• General entry into force: Planned for 1 January 2027.
• Earlier application: Certain provisions (notably those related to export evidence, import declarations, and low-value consignments) are expected to enter into force immediately after publication.

Conclusion

The proposed amendments represent a significant evolution in VAT treatment of exports and imports, characterised by:

• Substantive alignment with EU law,
• Reduced formalism in export documentation, and
• Increased digitalisation of VAT procedures.

For businesses, the changes create both opportunities (greater flexibility, fewer disputes) and obligations (enhanced compliance conditions and digital requirements)—making early assessment and process adaptation essential ahead of the 2027 implementation timeline.

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Sources

Primary legislative & policy sources

• EU VAT Directive (legal basis for export exemption – no strict document requirement)
  👉 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32006L0112
  • Establishes the 0% VAT exemption for exports (Art. 146) without prescribing a single form of proof.
  • Supports the shift toward substance-over-form evidence.

Polish VAT framework (current rules and limitations)

• Overview of export evidence requirements under Polish VAT Act (Art. 41(6)–(6a))
  👉 Documents confirming export of goods (Poland)
  • Confirms that 0% VAT currently depends on customs confirmation (e.g. IE599/CC599C). [polishtax.com]
  • Demonstrates the formalistic nature of existing rules that the draft aims to relax.
• Analysis of Article 41 VAT Act and required customs proof
  👉 Customs documents under Article 41 VAT Act
  • Highlights that possession of a customs-issued document is required before filing VAT return. [podatki-finanse.org]
  • Confirms that the catalogue is formally “open” but in practice heavily reliant on official customs evidence. [podatki-finanse.org]
• Tax authority position denying 0% VAT without customs confirmation
  👉 Alternative documents and disputes
  • Shows that authorities historically reject alternative evidence (e.g. transport documents). [isp-modzelewski.pl]
  • Illustrates the disputes the draft explicitly seeks to reduce.

Case law and EU principles supporting reform

• CJEU and Polish court jurisprudence on alternative proof
  👉 Alternative evidence of export – case law review
  • Confirms that 0% VAT cannot depend solely on a specific document if export is proven otherwise. [easyclearance.pl]
  • Reinforces the principle of material conditions over formal requirements.
• Court rulings accepting alternative evidence (transport, foreign customs, buyer statements)
  👉 Export without IE599 – court approach
  • Courts accept transport documentation, foreign customs declarations, and statements as valid proof. [txb.pl]
  • Aligns directly with the new Article 41(6c) proposal.

Draft legislation and reform context (Poland)

• KPMG – April 2026 update on VAT Act amendments (draft published and progressing)
  👉 Poland VAT law amendments – April 2026
  • Confirms a new version of the VAT amendment bill was published in 2026 and is progressing through the legislative process. [kpmg.com]
• Deloitte – Draft VAT reform (consultation stage, alignment with EU law, simplification goal)
  👉 Draft VAT reform bill
  • Confirms that the reform aims to:
    • Simplify VAT rules,
    • Align with EU law,
    • Reduce administrative burden. [taxathand.com]
• Crowe – 2026 VAT changes overview (deregulation + anti-abuse balance)
  👉 Changes in VAT 2026
  • Confirms policy direction:
    • Less formalism / easier business environment,
    • Combined with measures to reduce VAT fraud. [crowe.com]

Supporting context (customs digitalisation and evidence systems)

• Deloitte – export confirmation system (IE599 → CC599C)
  👉 Export confirmation documentation changes
  • Confirms reliance on electronic customs messages as proof of export. [taxathand.com]
  • Highlights why failure/delay of such messages creates practical issues, driving reform.

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