Poland | Tungsten Network

Introduction of new VAT groups delayed

Ryan Golds — Wed, 06 Jul 2022 12:04:18 +0000

The introduction of new VAT groups in Poland was expected to come into effect on 1^st July 2022. However, there are indications that the applicable legislation will not be enacted in time.

It is envisaged that the introduction of new VAT groups in Poland will now take place from January 2023.

If so, this may affect the changes to the VAT-R form in Poland referred to below.

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New VAT-R form

Ryan Golds — Wed, 06 Jul 2022 09:44:45 +0000

There have been some significant changes on the VAT-R form in Poland.

The VAT-R is the form necessary to initiate VAT registration in Poland. Further to the two changes above, the form will now include the option to indicate that a particular taxpayer is part of a VAT group. The form also allows taxpayers to select whether financial services are taxed, or whether they are exempt from taxation.

An English version of the form is also available.

The new form came into effect from 1 July 2022. A transitional period has allowed taxpayers some flexibility and meant that the previous version could be used until 31 June 2022.

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E-invoicing mandate delay

Ryan Golds — Wed, 06 Jul 2022 09:42:24 +0000

Last month we communicated around the derogation granted to Poland by the European commission to mandate e-invoicing in the country. We expected the Polish mandate to be enforced through the course of 2023.

The European Council has revised the date from which the derogation applies to 1^st January 2024. This was approved by the European Council on 17 June 2022. This means Poland, at the earliest, can start mandating e-invoicing in the country from 1^st January 2024. The derogation is effective until 31 March 2026.

The legislation has now been published in the official Journal of the EU Union and the derogation is not legally binding.

Tungsten Network is preparing to be ready for the Polish mandate and we will continue to update you on our progress.

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Derogation from European Commission to mandate e-invoicing

Ryan Golds — Thu, 28 Apr 2022 07:07:50 +0000

Poland has now received the derogation from the European Commission to mandate e-invoicing in the country.
The derogation is required by each EU Member State if they wish to mandate e-invoicing in their respective country, as formal permission is needed to deviate from the right to receive an invoice in paper format (as per the EU Council Directive 2006/112/EC of 28 November 2006).
This effectively means that Poland can now implement mandatory e-invoicing in the country.
E-invoicing in Poland is expected to be enforced from April 2023. A firm date has not yet been set.
Tungsten Network will communicate when a firmer date is communicated.

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VAT assistance to Ukraine

Ryan Golds — Thu, 28 Apr 2022 07:06:54 +0000

The past 2 years have demonstrated a direct correlation between significant world events and the fiscal measures countries enact. This has been particularly notable with the coronavirus pandemic but is also becoming more apparent with recent events in Ukraine.
We’ve previously seen countries such as Romania taking measures to ensure that all goods and services provided to persons affected by the war will not be subject to VAT.
Poland is adopting multiple similar measures. The Polish National foundation of Tax Advisors has stressed that no public associations will benefit from any tax relief on aid from Ukraine.
Poland is also considering the revision of a current decree, which would mean a 0% VAT rate would be applied to free-of charge deliveries of goods (or a supply of services) which would be aimed at assisting victims of Ukraine’s armed conflict.
This would affect all deliveries / supplies made between 24 February 2022 and 30 June 2022, if approved by the Polish Parliament.
We can expect to see many countries adopting similar measures, particularly bordering countries in close proximity to the conflict.

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Taxation of financial services

Ryan Golds — Thu, 28 Apr 2022 07:06:20 +0000

The Polish Ministry of Finance has permitted the taxation of any financial services that businesses provide from 1st January 2022.
The main effect of this is that many businesses will be able to deduct VAT from goods / services purchased, thus providing a financial benefit. Taxation of financial services is optional rather than mandatory.
Financial services for retail clients are still exempt- meaning that any consumers should not see an increase in prices.

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Extension for split payment mechanism

Ryan Golds — Thu, 28 Apr 2022 07:05:55 +0000

Poland introduced the split payment mechanism in 2019.
The split payment mechanism is where VAT is not paid together with the net amount into the applicable bank account. Rather, the VAT is placed into a separate dedicated bank account for the VAT.
In November 2019, Tungsten Network enabled a feature allowing suppliers to indicate whether the invoice is subject to the split payment mechanism in Poland.
The European Commission had granted Poland the right to mandate split payments until the end of February 2022. However, the European Commission has granted permission to extend the split payment mechanism beyond 1st March 2022, for a period of 3 years.
In many respects, the split payment mechanism has the same underlying aims as the upcoming Polish e-invoicing mandate- to reduce the VAT gap, as the mechanism provides a means of certainty that the VAT has been paid. The extension of the split payment mechanism therefore serves to further reduce the VAT gap in Poland.

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Introduction of Polish VAT groups

Ryan Golds — Wed, 23 Mar 2022 12:38:28 +0000

With the upcoming e-invoicing mandate expected during 2023 and new recent SAFT-requirements, Poland is overseeing a busy period in the re-structuring of its fiscal operations.

Another significant change being introduced in Poland is the introduction of new VAT groups.

Poland will permit the formation of VAT groups in Poland- these are groups which will typically be formed based on financial, economic or organisational ties. Taxpayers can be based in Poland or abroad- but if the latter, it is expected that they will conduct their business through a branch in Poland. Groups must be formed for a minimum of 3 years.

A representative of the group will perform any VAT- related responsibilities. Any transactions between the members of the same VAT group will not be subject to VAT- although transactions with entities outside the VAT group will in effect be deemed to be transactions with the entire group.

This comes with some benefits- transactions between members of the same group will not be subject to VAT and the corollary of reduced administrative-related duties relating to VAT.

These regulations are expected to come into effect on 1 July 2022.

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Publication of new version of the JPK FA structure

Ryan Golds — Wed, 23 Mar 2022 12:36:55 +0000

The Polish Ministry of Finance has this month published the new JPK_FA structure. Alongside the new structure, an information brochure has been published, outlining the main changes that have been introduced.

The new structure can be located on the Polish National Tax Administration website.

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