The Sejm has passed a bill to tighten up VAT on e-commerce

The Sejm has passed a bill to tighten up VAT on e-commerce

The Sejm has passed a bill to tighten up VAT on e-commerce
On 20 May 2021 MEPs passed an amendment to the VAT Act implementing the EU VAT e-commerce package. The solutions contained in the package are to facilitate the settlement of VAT on sales of goods and services to consumers in EU Member States.

The Sejm has passed a draft amendment to the VAT Act, adopted by the Council of Ministers, which constitutes part of the so-called e-commerce package and aims to implement EU solutions leading to the tightening of VAT in e-commerce and the import of so-called small consignments to the EU.

VAT settlements on goods and services in e-commerce

The solutions of the so-called e-commerce package implementing the provisions of Council Directives (EU) 2017/2455 and 2019/1995 into the Polish legal order will make it easier for entrepreneurs operating in the e-commerce sector to conduct their business.

Learn more: Poland implements the EU VAT e-commerce package

The aim of introducing changes in VAT settlements is to equalise the chances of EU entrepreneurs from the e-commerce sector competing with entities from third countries, to simplify obligations concerning VAT settlements and to facilitate the operations of companies sending goods from Poland to consumers in other EU countries.

E-commerce VAT package - the most important changes:

  • the settlement of VAT at the so-called "one-stop shop" in the country of establishment (One Stop Shop procedure),
  • abolition of VAT exemption on imports within the EU of so-called small consignments of up to €22,
  • a uniform EU sales threshold of EUR 10 000, above which the OSS procedure can be used (until now, each Member State had its own threshold for so-called distance selling),
  • OSS without VAT registration in the countries of consumption,
  • the obligation to collect and pay VAT on certain transactions carried out by sales platforms.

The solutions of the amendment to the VAT Act passed by the Sejm will come into force on 1 July 2021.

Tax advisory

Contact our expert

Agata Nie┼╝ychowska
Agata Nie┼╝ychowska
Tax Director