Poland’s Tax Office to Reduce VAT Sanctions, but Still Obliged to Impose Them

• The Ministry of Finance in Poland states that the imposition of VAT sanctions is mandatory when there is a VAT irregularity.
• However, experts disagree and believe that the sanction can be 0%.
• The Ministry of Finance has softened its stance on 100% VAT sanctions and states that only fraudsters will receive them.
• VAT deduction from faulty invoices, due to lack of due diligence, is subject to a sanction of up to 30%.
• After four months of changes in VAT sanction regulations, there is still no established practice.
• The Ministry of Finance clarifies that the creation of an irregularity is the basis for imposing a sanction.
• The tax authority has the obligation to impose an additional tax liability.
• There are exceptions to the sanction, such as when errors are due to accounting mistakes or if the taxpayer corrects the tax declaration before a tax inspection.

Source: prawo.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.