The Sejm has passed a comprehensive amendment to the VAT Act, which combines measures to tighten up the tax system with a number of simplifications for businesses. The Act provides, amongst other things, for an extension of joint and several liability for VAT, new obligations for users of cash registers, and a reduction in some of the existing administrative obligations. The amendment is currently being considered by the Senate, and most of the provisions are due to come into force on 1 January 2027.
One of the most significant changes is the extension of the rules on the purchaser’s joint and several liability for VAT not paid by the seller. Once the new provisions come into force, the mere use of the split payment mechanism will no longer be sufficient to exempt the purchaser from liability if they knew that the invoice was issued by a non-existent entity, documents transactions that did not take place, contains amounts that do not correspond to reality, or confirms transactions carried out in circumstances constituting an abuse of the law.
The new rules will also cover selected intangible services, in particular accounting, advertising, consultancy, IT, hosting, market research and employment services. Joint and several liability will apply if the value of the invoice exceeds PLN 15,000 or if the monthly net value of such services purchased from a single supplier exceeds PLN 50,000.
The draft also sets out new grounds for refusing registration as a VAT taxpayer, including where a tax representative has not been appointed (where required) or where there is no contact with such a representative. In addition, taxpayers using cash registers will be required to deregister unused devices – failure to comply with this obligation will be punishable by a fine of PLN 300.
The amendment introduces a number of simplifications, including the abolition of certain administrative obligations (such as the VAT-Z form in selected cases and separate information on physical stock-taking), the ability to verify a VAT taxpayer’s status for up to 5 years retrospectively, as well as new solutions for businesses engaged in international trade, such as VAT warehouses and e-clearance under the TAX FREE scheme.
The planned changes mean that proper verification of business partners and an ongoing review of the VAT procedures applied within the company will become even more important. It is advisable to prepare for the changes well in advance and assess their impact on your accounting practices.
If your company wants to properly prepare for the upcoming regulatory changes and verify its current tax settlement procedures, we invite you to contact our tax advisors to conduct a comprehensive audit and adjust your organization’s processes.