The amendment to VAT Act of December 6, 2022 introduces several changes intended to reduce the administrative burden as well as help the gastro sector and sports venues.
The individual changes adopted by the amendment are described in detail below:
The VAT Act introduces the obligation to correct the deducted VAT from purchased goods and services from which the input VAT had been deducted, in the event that the customer does not pay in part or in full for more than 100 days after the due date. The regulation applies only to invoices where the person liable to pay the tax is the supplier (domestic invoices with the application of VAT), i.e. it does not apply to invoices where the transfer of tax liability is applied.
In case that full or partial amount of the obligation is paid in the future, the customer will be able to correct the amended VAT. Older obligations also fall under the mentioned provision, for which 100 days after maturity expire on January 1, 2023 or later. This adjustment does not apply in the case of old obligations, where 100 days after maturity will expire in 2022.
There is also a possibility for the supplier to adjust the VAT deducted from the part of the invoice that the customer did not pay and which became unenforceable.
At the same time, the definition of an unenforceable debt is also changing, while it is now sufficient for it to be a debt that is overdue for more than 150 days and there has been an activity to obtain the payment:
These changes apply to all receivables that are 150 days past due on January 1, 2023 and later.
o the shipment is sent from a 3rd country free of charge,
o this is an occasional delivery,
o these are goods that are exclusively for the personal consumption of the recipient or the household,
o the value of the shipment does not exceed 45 euros.
In addition to the last amendment to the VAT Act, the amendment adopted on March 25, 2022 also enters into force on January 1, 2023. This amendment introduces a second reduced VAT rate of 5%, which will be applied to the supply of buildings, construction land, construction activities performed on construction sites, which meet the conditions for the construction of state-supported rental housing.
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