In 2019, the legislator introduced extensive amendments to the VAT Act, resulting in significant changes in tax settlements, effective as of 01/01/2020, which include not only entrepreneurs, but also the entire budgetary sphere.

Violation of the provisions on the mandatory mechanism of split payment, as well as payment to the bank account of the contractor, which is not included in the white list, causes absolute impossibility to settle tax costs from 01/01/2020. The introduced provisions cause numerous interpretative doubts of taxpayers. The Ministry of Finance issues further general explanations regarding recent amendments to help taxpayers in interpreting the amended provisions.

The introduced changes concern many important areas of VAT and include, among others:

  • liquidation of the reverse charge procedure,
  • introducing the obligation to apply the split payment mechanism for all goods and services listed in new Annex 15 to the VAT Act,
  • modification of the legal regulation of joint and several liability,
  • introduction of a new matrix of VAT rates and Binding Rate Information,
  • liquidation of old VAT declarations and introduction of new JPK_VAT files and new VAT declarations from 1.04. and 1.07.2020,
  • introducing the obligation to have a micro-account for payments due to PIT, CIT and VAT,
  • changes in the practice of functioning of many legal institutions (including, among others: first occupation, changes in the scope of subjective exemptions, VAT on the import of goods, VAT invoices issued for fiscal receipts, grounds for deletion from the register of VAT payers),
  • introduction of an administrative penalty for errors in VAT records,
  • the obligation to use online cash registers, and
  • the obligation to use so-called bank settlements whitelist of VAT.

In 2019, significant EU TS rulings were also issued, which were of great importance to Polish taxpayers, including about:

  • 0% rates for the export of goods – judgment of the EU Court of 17.10.2019 in case C 653/18.
  • activities performed by a member of the supervisory board of the foundation – judgment of the EU Court of 13/06/2019 in case C-420/18,
  • qualification for making fuel cards available – judgment of the EU Court of 15.05.2019 in case 235/18,
  • Bad debt relief – judgment of the EU Court of 8.05. 2019 in case C 127/18,
  • prohibition of countdowns on the purchase of accommodation and catering services – judgment of the TS EU of 05/02/2019 in case 225/18,

We invite you to contact our office:

  • we solve all problematic facts in the scope of recent VAT amendments,
  • we help in the correct interpretation of the amended provisions of the Act,
  • we indicate areas of threat with negative qualifications made by tax authorities,
  • we provide advice, consultation and explanations as well
  • we represent taxpayers in disputes with tax authorities.

Płock Office

ul. Obrońców Helu 15
09-410 Płock

tel: +48 532 306 604
kolecki@pkmksp.com

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