Polish VAT changes financial services and anti-fraud reverse charge

Wed 3rd Sep 2014

There are to be changes to the Polish VAT Law from the 1 January 2015 . These include:

  1. Introduction of the domestic reverse charge for the provision of high value small items susceptible to VAT fraud. These include computer chips, phones and tablets. This measure is designed to stamp out extensive VAT missing trader frauds whereby companies falsely claim no VAT on exports which are actually sold domestically with VAT.
  2. Removal of the VAT exemption for the provision of outsourced banking and insurance administration services
  3. Changes to the rules on determining the proportions of input VAT which may be reclaimed when a company is selling a mixture of taxable and full/partially exempt supplies.