SLIM VAT 3 – what will change from July 2023?
On July 1, 2023, a package of changes referred to as SLIM VAT 3 enters into force, which primarily involves modifications to the provisions on tax on goods and services. The assumption of the SLIM VAT 3 package is to simplify, but also to tighten the VAT regulations. Below is an overview of the most important changes introduced by SLIM VAT 3.
Exchange rates for correcting invoices
One of the key changes is the introduction of provisions on the use of the exchange rate in the case of corrective invoices. Until now, the VAT Act lacked regulations related to the conversion of corrective invoices issued in foreign currencies into PLN, which raised many doubts and differences in currency conversions, later questioned by the tax authorities.
The SLIM VAT 3 package introduces provisions that clearly indicate that the historical exchange rate applicable for converting amounts in foreign currencies on correcting invoices will be the historical exchange rate, i.e. the exchange rate appropriate for the original (corrected) invoice. In the case of corrections in connection with granting discounts or reductions of the original price, the exchange rate from the day preceding the date of issuing the correcting invoice may be used.
Sales limit for a small taxpayer
Another change is a new sales limit, up to which the entrepreneur will have the status of a small taxpayer. Currently, it is EUR 1.2 million – from July 1, this amount will increase to EUR 2 million. For more entities, this will extend the possibility of e.g. using the cash accounting method or quarterly VAT settlements.
VAT deduction for intra-Community acquisition of goods
Another change is related to the intra-Community acquisition of goods, specifically the moment of deducting input VAT related to the acquisition. Currently, VAT deduction is possible only upon receipt of an invoice documenting the intra-Community acquisition. This provision is not favorable for taxpayers, because the obligation to pay output VAT preceded the right to deduct input VAT related to such supplies. SLIM VAT 3 eliminates the requirement to have an invoice documenting the WNT as a condition for exercising the right to deduct input VAT on this account.
Other changes introduced by the SLIM VAT 3 package:
- extending the possibility of using the funds accumulated on the VAT account to pay public law liabilities, e.g. tonnage tax, retail sales tax;
- abolition of the requirement to make an annual correction of input VAT when the sales ratio is lower and differs by no more than 2 percentage points from the ratio adopted at the beginning of the year;
- no need to print fiscal reports and other (non-fiscal) documents from online cash registers;
- specifying the moment of showing the intra-Community supply of goods with a 0% rate in the corrections of the declaration – if the taxpayer receives the documents after the deadline, the transaction should be shown not – as so far – on the date of delivery, but on the date of the tax obligation;
- the possibility of submitting corrections to declarations outside the OSS and IOSS systems directly to the Łódź Tax Office;
Act of 26 May 2023 amending the Act on Value Added Tax and certain other acts (Journal of Laws of 2023, item 1059)
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