- On 14 October 2022, Poland’s Ministry of Finance published the final version of the Tax Explanations regulating the creation of VAT groups in Poland, which will enter into force on 1 January 2023. The explanations address additional issues that were flagged during public consultations and aim to clarify the complex provisions of the Polish VAT law.
- Taxpayers that follow the guidance provided in the document are protected from suffering any negative tax consequences.
- The explanations address topics such as the financial, economic, and organizational relationships between VAT group members, the VAT group registration process, the VAT treatment of transactions between a central office and a branch in another EU country, VAT group settlements and input VAT recovery, VAT import procedures, and other issues like invoicing, reporting, and details regarding the interim period before or after the VAT group’s establishment or dissolution.
- The Ministry of Finance also confirmed that the creation of a VAT group is not a tax scheme subject to mandatory disclosure rules (MDR) reporting, except if one of the members of the VAT group is using a relevant tax scheme.
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