Tax consultancy and accounting

SLIM VAT 3 project


As part of further reforms, we are awaiting the next SLIM VAT 3 project. According to preliminary assumptions, the Ministry expects the package of changes to come into effect in the last quarter of 2022.


The project involves a number of reforms affecting many elements of the Polish tax and administrative system.


1. The first change mentioned in the law will affect Article 2 item. 25(a) of the VAT Act. The change will see an increase in the sales value threshold from €1,200,000 to €2,000,000, which affects the identification of a “Small Taxpayer.”


2. An amendment to Article 22 paragraph 3b of the VAT Act in which the words of paragraphs 2-2d will be changed to the words of paragraphs 2-2e. According to this change, the provisions on chain transactions will not apply to cases where the taxpayer is a so-called electronic interface considered a supplier.


3. Introduction provisions that specify exchange rates for a number of adjustments listed above. Currently, there are no such provisions, which generates difficulties in the correct conversion of invoices.

1. Conversion rate in case of corrective invoices;

2. Exchange rate in the case of in minus adjustments;

3. Exchange rate in the case of aggregate adjustments of invoices in minus;

4. Exchange rate in case of in plus adjustments;

5. Exchange rate for collective Intra-Community acquisition of goods correction;


4. Amendment to Article 42 paragraph 12a of the VAT Act. Clarification of the moment at which it will be necessary to show Intra-Community supply of goods. With the changes, demonstrating Intra-Community supply of goods should be done in the settlement for the period in which the tax obligation arose, i.e. when the invoice is issued.


5. An amendment to Article 43 paragraph 1 item. 12(a) of the VAT Act. VAT exemption for investment fund management services based in other European Union countries.


6. Adding a second paragraph in Article 80 of the VAT Law. VAT exemption on the importation of goods for diplomatic representation. Under this regulation, it will be possible to cede a passenger car and other vehicles before the expiration of 3 years to other persons in the case of justified circumstances related to the important interests of the service without paying the applicable dues. The condition is that the diplomatic staff member must stay for no less than 2 years.


7. Changes to Article 86 of the VAT Act. Change of prerequisites for VAT deduction at Intra-Community acquisition of goods. Possibility to deduct input tax without an invoice. After the changes, the only prerequisite for deduction will be showing output tax on Intra-Community acquisition of goods. The above will result in the fact that input tax and output tax on Intra-Community acquisition of goods will always be accounted for exactly in the same accounting period, and as a consequence VAT on Intra-Community acquisition of goods will be fully neutral for the taxpayer.


8. In Article 90 in paragraph 10, item. 1 and in paragraph 12, the amount of PLN 500 is changed to PLN 10,000 in the VAT Law. Increasing the amount of non-deductible input tax that results from the application of the proportion of deduction on an annual basis to PLN 10,000 in cases where the proportion exceeds 98%.


9. Addition of another paragraph in Article 91 of the VAT Act. The possibility of abandoning the annual adjustment of the deduction. Currently, taxpayers in the case where the final adjustment differs from the annual adjustment are required to make an annual adjustment. After the amendments to the regulations, in the case in which the difference does not exceed 2 percentage points, the taxpayer will be able to opt out of making the adjustment.


10. Changes to Articles 106b, 106e and 106i of the VAT Act. No obligation to issue an advance invoice and a final invoice if the event took place in the same accounting period. With the proviso that the entity will be required to indicate on the final invoice the date of receipt of the advance payment.


11. Amendment to Article 108a paragraph 6 of the VAT Act. In order to free himself from joint and several liability, the taxpayer will be able to make payments to the VAT account of the taxpayer, which is the financial institution indicated in the debt purchase agreement between the financial institution and the supplier or purchaser. The factor will be able to transfer the VAT amount directly to the VAT account of the new factor, bypassing the transfer to the supplier.


12. The amendment to Article 111, paragraph 3a, item. 8 and paragraph 7a item. 1 of the VAT Act. No need to print fiscal reports when using online and virtual cash registers.


13. Amendment to Article 112b of the VAT Act and addition to Article 112, paragraph 3, item. 4. A controlled person who, within 14 days from the date of delivery of the authorization to carry out a customs and fiscal control, uses the right to correct the declaration, a lower sanction will be imposed, but it will also be possible to waive the sanction if it is found that the taxpayer lacks expediency or fraud. It is planned to reduce this value to 5% if the right to correct before the audit is exercised, and to reduce this value by 10% if the correction occurs after the audit.


14. Article 130cs is added after Article 130c, Article 133a is added after Article 133, and Article 138ga is added after Article 138g. Introducing provisions that will clarify how the adjustment should be made in the case of a situation in which a taxpayer who used the OSS procedure and is no longer under this procedure and one who used the IOSS procedure.


15. Amendments to Article 62b of the Banking Law. Introducing regulations that will allow VAT group members to transfer funds from their VAT accounts to the representative’s VAT account. In view of the fact that it is the group representative who is obligated to pay dues to the tax office.


16. Expanding the catalog of receivables that will be allowed to be paid from the VAT account under Article 62b, paragraph 2, item. 2 of the Banking Law:

1. Minerals extraction tax;

2. Retail sales tax;

3. Levies on foodstuffs;

4. Flat-rate tax on the value of sold production;

5. Tonnage tax;

6. Tax on so-called “monkeys”


17. Consolidation of the authority issuing binding rate information, binding excise information and binding tariff information. The authority is to be the Director of National Fiscal Information.