Poland VAT changes

Fri 11th Dec 2015

Poland’s latest VAT Act will introduce a number of changes to the indirect tax compliance regime from 1 January 2016 or early Spring.

These changes include:

  • Joint VAT compliance liability with businesses suppliers when the monthly supplies exceed PLN 100,000
  • Linked to the above, the introduction of voluntary split payments on the above supplies to avoid shared liabilities. Split payment involve paying the VAT element on a purchase invoice direct to the government
  • Withdrawal of tax rulings which offer companies serity over the VAT treatment on controversial/unclear transactions
  • Requirements for disclosure to the VAT authorities of VAT saving structures with tax savings above PLN 500,000
  • Scrapping of the domestic reverse charge mechanism on a range of goods including valuable metals and electronic goods. The reverse charge eliminates cash payments of VAT on supplies of goods or services in Poland and is a popular anti-VAT fraud measure which requires approval from the European Commission
  • Increases in VAT non-compliance fines