Poland: Proposal of amendments to VAT Act intended to fight fiscal frauds

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Poland: Proposal of amendments to VAT Act intended to fight fiscal frauds

spychalski.jpg

Michal Spychalski

The Polish Ministry of Finance has announced proposed amendments to the VAT Act. The introduction of this package – according to the Ministry of Finance – will increase the effectiveness of the fight against VAT fraud. The new rules will primarily concern the domestic reverse charge mechanism, joint and several tax liability, as well as rules of VAT deduction in case of goods and services used for mixed purposes. The Ministry of Finance is planning to implement these amendments from January 2015. The domestic VAT reverse charge mechanism will be extended and will cover new products, such as mobile phones (including smartphones), portable computers (tablets, notebooks, laptops) and video game consoles. From 2015 reverse charge will also apply to raw gold and certain steel products whose characteristics are similar to products already covered by this mechanism. The domestic reverse charge will only apply if the purchaser is registered as the VAT taxpayer, and – in case of mobile phones – only if daily net amount of sale to one purchaser exceeded 20,000 PLN ($6,000).

The proposal also introduces a new reporting obligation. The suppliers of goods and services, in case of which VAT will be accounted according to the domestic reverse charge mechanism, will be required to submit to the tax office a statement listing such transactions.

The list of goods subject to joint and several tax liability mechanism will also be amended. According to this mechanism, which was introduced in Poland in October 2013, under certain circumstances purchasers of some goods (steel products, fuels, lubricants and raw gold) may be responsible for a supplier's VAT liabilities. The Ministry of Finance is planning to apply this mechanism also to raw silver and platinum. On the other hand, raw gold will be excluded as it will be covered by the domestic reverse charge mechanism.

The next part of the proposed amendments refers to rules of VAT deduction in case of goods and services used for mixed purposes; that is, goods and services used for purposes of activities subject to VAT and other activities. In particular, it will be possible to receive from the tax authorities binding confirmation that the method of calculating the VAT pro-rata applied by taxpayer is correct. Additionally, the Ministry of Finance will issue implementing regulations specifying possible methods of calculating VAT pro-rata.

This is still only the general draft of the proposal and a package of specific regulations will be announced later this year.

Michal Spychalski (Michal.spychalski@mddp.pl)

MDDP

Tel: +48 22 322 68 88

Website: www.mddp.pl

more across site & shared bottom lb ros

More from across our site

Given the US/G7 pillar two deal, the OECD is in danger of being replaced by the UN as the leading global tax reform forum
Cinven’s latest investment follows its acquisition of a stake in Grant Thornton UK in December; in other news, a barrister listed by HMRC as a tax avoidance promoter has alleged harassment
CIT base narrowing measures remain more prevalent than increased CIT rates, the report also highlighted
ITR's parent company, LBG, will acquire The Lawyer, a leading news, intelligence and data-driven insight provider for the legal industry, from Centaur Media
KPMG UK’s Graeme Webster and KPMG Meijburg & Co’s Eduard Sporken outline the 20-year evolution of MAPAs, with DEMPE analyses becoming more prevalent and MAPA requirements growing stricter
Rishi Joshi, of the Institute of Chartered Accountants of India, warns of potential judicial overreach as assets are recharacterised to bypass a legislative exclusion
Only 2% of in-house survey respondents said they were ‘heavy’ users of AI for TP, Aibidia’s report also found
There was a ‘deeply embedded culture within PwC that routinely disregarded formal confidentiality obligations,’ the chairman of Australia’s Tax Practitioners Board said
Jennifer Best was most recently the acting commissioner of the IRS’s large business and international division
Section 899’s exclusion from the One Big Beautiful Bill does not mean it has been nipped in the bud, Aruna Kalyanam also tells ITR
Gift this article