SLIM VAT 3 adopted by the Sejm

SLIM VAT 3 adopted by the Sejm

Szymon Lipiński, Tax Consultant
SLIM VAT 3 adopted by the Sejm
Works on the next VAT amendment package have been in progress since 2021. Although the original version of the amendment assumed that the changes could be enacted before 1 April 2023, the draft with additional amendments was adopted by the Sejm on Friday 14 April. The draft bill has now gone to the Senate.

Changes beneficial to taxpayers

It is worth noting that along with the most recent SLIM VAT package, a number of provisions will change, including:

  • The amount entitling to small VAT taxpayer status will increase to €2 million,
  • No need to have an invoice to settle VAT,
  • Unification of tax information WIS, WIA, WIT, WIP,
  • Option to transfer funds deposited in VAT accounts of VAT group members,
  • An increase from PLN 500 to PLN 10 000 of the amount for which the proportion of deduction is deemed to be 100%,
  • Reduction of VAT penalties.

Changes to excise duty

On 12 April 2023, at the public finance committee, additional changes to the SLIM VAT 3 amendment package were proposed. The most important include proposed changes to the way in which certain excise goods are taxed.

These are white spirit (2710 12 21 00), other light oils (2710 12 25 20), medium oils for other purposes (2710 19 29 00) and certain petroleum-based oils (2710 20 90). These products may, in principle, be placed under an excise duty suspension procedure if they are moved in bulk, in individual packages. By analogy with the rules for the recognition of suspension, the provisions on intra-Community movements of excise goods outside the excise suspension procedure applied.

Patching up mistakes in the e-SAD amendment

However, contrary to the legislator's intention, a loophole was created under which goods could be moved outside the excise duty suspension regime, regardless of the form in which they were transported. Let us recall that from 13 February 2023, completely new rules apply to intra-Community movements of excise goods outside the excise duty suspension regime. The basis for making movements within the EU has become the e-SAD documents operating within the EMCS system. According to the amended rules, it did not matter for the movement of the goods in question in what form (bulk or tank) the goods are moved.

The legislator recognised this mistake and, as part of the amendments to the Excise Duty Act, the public finance committee proposed to modify the scope of oils allowed to be moved outside suspension. According to the new rules, selected light oils will only be subject to suspension of excise duty and moved outside this suspension if they are transported in bulk.

Deadline for implementation

Most of the proposed changes to VAT will come into effect on 1 July 2023, while the changes to excise duty are expected to come into effect the day after the Act is published.

The legislative workflow on the Sejm website: Sejm of the Republic of Poland, Draft No. 3025

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