Poland updates VAT compliance rules to comply with EU VAT Directive

Sat 3rd Nov 2012

As a member of the European Union, Poland is required to fully implement the VAT Directives, which set the rules for EU VAT compliance.  Poland’s VAT Bill, to be passed in time for 2013, contains a number of amendments to the existing Polish VAT regime as part of this process.

The mains changes include:

  • the tax point for taxable goods or services will now change from the date of the invoice to the date of the provision of the supply.
  • the ability to use a local fiscal representative to import goods in the EU for the first time via Poland for onward supply will be withdrawn.
  • trade price discounts will now taken into account as the basis for the calculation of the taxable amount, thus reducing the amount of VAT payable.

The measures are aimed at reducing the burden of Polish VAT compliance on local and non-resident VAT traders.  Poland operates one of the most demanding fiscal regimes in the EU, which has been slow to update and reform.  These present challenges to foreign companies trying to trade locally.

The new Polish VAT rules will come into force in July 2013.

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