Poland VAT compliance changes in 2014

Mon 11th Mar 2013

The new Polish VAT Act will usher in a number of changes to the VAT regime from 1 January 2014.  These changes, in addition to 2013 Polish VAT compliance changes, will bring Polish VAT rules into line with the EU VAT Directive.

The changes are outlined below.

Issuing a Polish VAT invoice

Invoices should be sent by the 15th of the month following the supply of the goods or services.

Correcting invoice rules

Sellers of goods or services may only correct a reduction in the VAT due when they obtain agreement from the purchaser.  This includes written confirmation.  However, if the seller can prove best efforts, then it may be possible to reduce the VAT due.

Advance payments for exports

Exports are generally exempt from Polish VAT.  If a Polish VAT registered entity is paid in advance for export supplies, the goods must leave Poland no later than two months after the payment is received.  If not, Polish VAT at 23% is due.

Tax point to follow EU VAT rules

The date when VAT is charged is known as the tax point.  In Poland, the current tax point is when the invoice is issued.  This will now change to the date of delivery or performance of the goods and services, respectively.  This is in compliance with EU VAT compliance law.

Deductibility of input VAT

Polish VAT incurred on purchases may not be offset in the VAT return before the receipt of a valid invoice.