Polish VAT simplifications in 2021

As of January 1, 2021 Poland adopted a number of changes with the aim to simplify the VAT compliance for Polish taxpayers. We have listed the most important simplifications.

Corrections of the tax base and output VAT

The supplier will no longer be obliged to receive the confirmation of acceptance of the correction/credit invoice from the customer in order to decrease the tax base and output VAT. The businesses can adjust the tax base and output VAT due in the period of issuing the correcting invoice, provided that the documentation in possession shows that the supplier has agreed with the buyer the change of the terms of transaction.

In the same period (i.e. the period when the arrangements are made), the buyer will be obliged to make an appropriate correction of input tax, which results from the arrangements made between the taxpayers.

0% VAT rate on prepayments for export of goods

In order to apply 0% VAT to the prepayment for export of goods, the goods will have to be exported within 6 months after the end of the month when the prepayment was received. Currently, the deadline is only 2 months.

The time limit for deduction of input VAT

At the moment Polish taxpayers can deduct input VAT for the month in which the conditions to deduct the input VAT are met or in one of the two following months. As from 2021 the deduction can be made for the month when the conditions to deduct are met or in one of the three following months (one month longer).

Exchange rates for CIT and VAT

The taxpayers of Polish CIT will be authorized to choose to use for the VAT purposes the same rules on exchange rates used to convert amounts into PLN as for CIT purposes. Such a choice will be valid for a minimum period of 12 months.

Threshold of gifts of small value

Currently, the maximum value of gifts of small value which are supplied free-of-charge is not taxable is PLN 10, this threshold will be increased to PLN 20.

Deduction of input VAT from purchase of accommodation services

Currently in Poland there is no possibility to deduct input VAT on accommodation services. From 2021 there will be a possibility to deduct input VAT from purchase of accommodation services (e.g. hotel) if the purchase/costs will be recharged to the final customer.

VAT split payment and statistical classification of goods and services

The list of goods and services subject to the obligatory split payment provided in Annex 15 to the VAT Act is organized according to the Polish Classification of Goods and Services 2008. From 2021 reference will be made to the Polish Classification of Goods and Services from 2015. The scope of goods and services will not change.

Get in touch with us

Of all compliance areas in international trade, the VAT legislation imposes the strictest sanctions and the highest fines. You want to avoid these risks and be VAT compliant? Ask Pincvision. We are happy to help you with your VAT obligations. Contact us at +31(0)-884321800 or send an email to info@pincvision.com

30 Dec 2020 at 10:53 am
3 min
Published by:
Daniƫlle van der Meulen-Idema
Sr. VAT Specialist
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