On January 24, 2023, the Council of Ministers adopted a draft amendment to the VAT Act and certain other acts concerning a new package of solutions for VAT settlement, known as the SLIM VAT 3 package. The Sejm is currently working on the draft amendment.
The main objectives of the SLIM VAT 3 package are to simplify VAT settlement, improve the financial liquidity of companies, and reduce formalities. These objectives are to be achieved by introducing several significant changes, including:
The sales value limit entitling to the status of a small taxpayer is to be increased from EUR 1,200,000 to EUR 2,000,000, which will allow a greater number of taxpayers to use the cash method and quarterly VAT settlements.
The disposal of funds accumulated in the VAT account will be expanded to include the possibility of paying from this account: tax on the extraction of certain minerals, retail sales tax, sugar tax, ship production tax, “monkey” fee, and tonnage tax. Currently, the disposal of funds accumulated in the VAT account is limited and includes making payments in the scope of VAT due, PIT and CIT, excise duty, customs duties, contributions for social insurance ZUS, and KRUS.
According to the SLIM VAT 3 package, when deducting input tax on ICA, it will not be necessary to have an invoice, and consequently, the input and output tax on ICA will always be settled in the same settlement period.
The package of changes to be introduced aims to regulate the rules for applying the exchange rate for corrective invoices in the case where the invoice is issued in a foreign currency. Currently, the rules for converting foreign currency exchange rates for corrective invoices are not regulated in the VAT Act.
According to the Ministry of Finance’s assumptions, the above changes are to come into force on April 1, 2023.
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