Polish VAT update

Sat 21st Nov 2015

The new Polish VAT Act proposes a wide range of Value Added Tax rule changes from 1 January 2016. These include:

  • The introduction of split-payment procedures whereby purchasers pay the VAT element of any invoices direct to the government instead of their suppliers to help reduce the instances of VAT fraud. Such a procedure will require approval from the European Commission.
  • Companies will not be allowed to deduct input VAT incurred with companies not included within the governments central register of tax payers.
  • The introduction of joint liability for companies on their suppliers VAT reporting. This would only apply on standard rated supplies, and where the monthly transactions with the supplier exceed PLN 100,000
  • Taxable invoices must be issued within 10 days of the tax point, and no earlier than sixty days of this date
  • Correcting invoices must be made within the month of the change in the invoice
  • An increase in fines on VAT changes
  • VAT refunds are to be made to companies within 90 days of the claim