The most important changes provided for in the amendment result from the introduction of theses of two judgments of the Court of Justice of the European Union regarding the compliance of Polish tax regulations with EU regulations. These changes concern:
- with regard to bad debt relief – (i) abolition of the current requirements that make it possible to correct the output VAT on the condition that the debtor, at the time of delivery of goods / services and on the day preceding the correction of the declaration by the creditor, was a registered active VAT taxpayer and was not in progress restructuring, bankruptcy or liquidation proceedings, as well as (ii) extending the deadline for applying the relief from 2 to 3 years (we wrote more about it on our blog – http://www.vatblog.mddp.pl/slim-vat-2- what-waits-in-the-relief-for-bad-long /);
- in the field of intra-Community acquisition and import of services – resignation from the VAT settlement in the “spaced order”, i.e. the condition making the deduction of input tax in the same period in which the output tax was shown, on the disclosure of the VAT due within three months from the end of the month in which it arose tax obligation – which is the implementation of the judgment of the Tribunal in case C-895 / 19A into Polish regulations.
The other changes, although less significant, may also have a positive impact on taxpayers’ settlements. In addition to the above-mentioned, the SLIM VAT 2 package:
- defines the rules of recognizing the adjustments lowering the tax base in the case of import of services, intra-Community acquisition of goods and the supply of goods for which the buyer is the taxpayer (we wrote more in this respect on the blog – http://www.vatblog.mddp.pl/slim-vat-2 -wnt-what-waits-in-the-scope-of-corrections-wnt-i-import-services /);
- clarifies the rules for the allocation of transport in the case of chain transactions relating to the export of goods or the intra-Community supply of goods;
- extends the number of periods in which the taxpayer can deduct VAT by correcting the declaration, if the deadline for deducting the tax has expired “on an ongoing basis” – currently, the deduction can only be made by correcting the first month (tax obligation / receipt of an invoice);
- allows the taxpayer who uses the settlement of the import of goods in the declaration to correct it, if he did not settle the tax correctly in the original declaration;
- extends the deadline for submitting information on incurring the first expenditure on a motor vehicle used exclusively for the taxpayer’s business;
- introduces the possibility of submitting a consistent declaration of the supplier and the buyer on the choice of real estate taxation in a notarial deed;
- changes the definitions of “Member State” and “territory of the European Union” in line with the exceptions that apply to Northern Ireland following the withdrawal of the United Kingdom from the European Union.
Source MDDP
