Poland: Remarks to draft VAT bill; consultation on VAT groupings; proposed amendments to excise tax guarantee provisions

Reports about recent valued added tax and excise tax-related developments

Reports about recent valued added tax and excise tax-related developments

The KPMG member firm in Poland has prepared reports about the following valued added tax (VAT) and excise tax-related developments.

  • Preliminary remarks to draft bill amending VAT law to implement SLIM VAT 3 package: The government published preliminary remarks to a draft bill amending the VAT law to implement a suite of measures jointly referred to as the SLIM VAT 3 package. Under the package, the annual turnover threshold for small VAT payers would increase from €1.2 million to €2 million, and VAT sanctions would be aligned with the European provisions. The package also provides for the possibility of settling other taxes and fees with funds from VAT accounts, including tax on extraction of certain minerals, retail sales tax, foodstuffs tax (“sugar tax”), lump-sum tax on the value of the produce marketed (commonly referred to as the tax on shipbuilding), tax on small-volume alcohol bottles, and tonnage tax. Moreover, the formal requirement to hold an intra-community acquisitions (ICA) invoice when deducting input tax on this account would be revoked.
  • Consultation on draft clarifications of VAT groupings: The Ministry of Finance launched consultations on draft clarifications regarding VAT groupings. The clarifications focus on the creation and operation of a new type of taxpayer, i.e., VAT groups. The goal is to provide a practical interpretation of the VAT law to the extent it provides for joint VAT settlements by entities forming VAT groups. The possibility of establishing VAT groups is yet another tax change aimed at stimulating and strengthening investments and development—one of the key advantages is that transactions between the members of a tax group are VAT-exempt. 
  • Proposed amendments to excise tax guarantee provisions: The Minister of Finance issued a draft decree on excise tax guarantees to align those provisions with the 9 December 2021 law amending the excise tax laws. Pursuant to the draft decree, the comprehensive guarantee due from taxpayers who make intra-community acquisitions of excise goods not listed in Schedule 2 of the excise tax law, subject to an excise duty rate other than a zero rate in the territory of Poland (for the purposes of domestic economic activity performed), would be determined as the equivalent of the amount indicated by the entity in the application for a comprehensive guarantee. The decree is proposed to become effective 16 February 2023.

Read a July 2022 report prepared by the KPMG member firm in Poland


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