SLIM VAT 2 is another set of changes that are supposed to simplify the VAT settlements in Poland. The first one was implemented as of 1 January 2021. New regulations include, among others:
SLIM VAT 2 entered into force on 1 October 2021; the “spaced array” regulations already became effective one day after publication (7 September 2021).
A bill passed by the Minister of Finance, Funds and Regional Policy concerning amendments to the tax legislation introducing the “Polish Deal” (Polski Ład) was published on 26 July 2021. The key change regarding VAT is the possibility to form so-called VAT groups for tax purposes as of 1 January 2022.
The main aim of a VAT group is that all members handle their tax compliance duties for VAT purposes together, while intra-group transactions are not subject to VAT. The participation in VAT groups is to be optional.
VAT groups can be set up by taxpayers being related financially, economically and organisationally to each other as defined by the amendments to the VAT Act, if:
Therefore, the possibility to establish a VAT group will not be connected with participation in a “tax capital group” (PGK) governed by the CIT Act.
To create a VAT group, a written agreement must be concluded in which the entity chosen to represent the VAT group will be indicated. The VAT group cannot be created for a period of less than 3 years. Moreover, during the existence of the VAT group, members of the group cannot be changed. This means that the structure of the VAT group shall remain the same.
The Global VAT Newsletter focuses on changes in compliance duties in various EU and non-EU countries.
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