Poland: Summary of recent indirect tax developments

Recent indirect tax developments

Recent indirect tax developments

The KPMG member firm in Poland prepared a report that includes summaries of recent indirect tax developments.

Draft bill implementing Slim VAT 3 package

The Ministry of Finance presented a draft bill implementing the simple, local and modern (Slim) value added tax (VAT) 3 package that would:

  • Expand of access to quarterly settlements and the use of the cash register method to a larger group of entities (the gross sales threshold for a small taxpayer will increase from €1.2 million to €2 million)
  • Increase by 20-fold the amount allowing the VAT proportion to be 100%—from PLN 500 to PLN 10,000
  • Introduce a voluntary correction of the input tax with a difference of less than 2% between the initial and final proportion and the possibility of allocating funds accumulated on the VAT account to pay, among others, tax on extraction of certain minerals, retail sales tax, foodstuffs tax (“sugar tax”), tax on small-volume alcohol bottles, and tonnage tax

The new provisions are proposed to be effective 1 January 2023.

New supplementary obligations imposed on payment service providers

A draft bill was published on the government’s website that would:

  • Impose new supplementary obligations, such as keeping quarterly records of payments and payment recipients in relation to the payment services provided and storing them for a period of three years from the end of the tax year in which the payment was made, on certain payment service providers (including national banks, branches of foreign banks, credit institutions, and electronic money institutions)
  • Require payment service providers to apply new principles for establishing the location of payers and payment recipients, including recording detailed information about the identification of the payment recipient and payments received by that recipient (such as the amount and reception date)

The new provisions are proposed to be effective 1 January 2024.

Meaning of “first occupation” for VAT purposes

The Regional Administrative Court in Warsaw recently held (case file III SA/Wa 2529/21) that “first occupation” for VAT purposes means commencement of utilization of a building or parts thereof in a manner corresponding to normal, typical use. Thus, a seller who bought real property in 2017 that remained unused until 2020 could not sell such property on a VAT-exempt basis before 2022 (two years after the first occupation in 2020).

Read an August 2022 report prepared by the KPMG member firm in Poland


The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.