Poland introduced January 1st 2021 so called SLIM VAT solution (simple, local and modern VAT) which aims to modernize VAT settlements and simplify running the business in Poland.
The main changes in
the SLIM VAT Act:
SLIM VAT will allow the seller to reduce the tax base already at the time of issuing the correcting invoice in minus (credit note), providing that he has a documentation confirming that he has agreed the terms of the transaction with his contractor. If the taxpayer does not have documentation in the period when a correcting invoice was invoiced, he will reduce the tax base for the accounting period when he obtains this documentation. For the credit note, the actual arrangements between contractors are more significant than issuing of the document.
Regarding the correcting invoices in plus (debit note), the moment of their recognition has been regulated in the rules. In accordance with the SLIM VAT assumptions, the moment of recognizing the correction invoice “in plus” will depend on the reason for its issue.
regulations extend the date of export of goods from two months that have been
in force, until six months. SLIM VAT is intended to make it easier for
exporters and to limit the correction of their declarations.
SLIM VAT is giving
a possibility to unify the exchange rates. Taxpayers will have a possibility to
choose the rules for converting the tax base in a foreign currency into PLN.
They may apply to VAT the same rules as for income tax conversion. This change
will simplify the billing. There will also be a possibility to
continue to apply the rules defined in the Value Added Tax Act.
The SLIM VAT
gives the possibility to deduct VAT on accommodation services, provided that
the purchase of the accommodation service is for resale. Previously, taxpayers
could not benefit from the VAT deduction.
The taxpayers who
pay taxes monthly, will be able to deduct the VAT in a total of four months
without the need to correct the declaration. This will reduce the number of
corrections resulting only from the expiry of the period in which the taxpayer
was entitled to deduct VAT from invoices. For quarterly taxpayers, the rules
have not changed.
So far, the taxpayer giving gifts above PLN 10 was obliged to keep records for the identification of the persons to whom he provided gifts. The records did not have to be kept for gifts worth up to PLN 10. SLIM VAT increases the small gifts value from PLN 10 to PLN 20. This reflects the economic changes and the need to adjust the amount of low value gifts to the average in the EU.
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