Changes in VAT 2025 in Poland

Public Poland Author: Nikolina Basic

The Council of Ministers in Poland has recently published the assumptions for a draft act aimed at amending several key legislative acts, including the Act on Tax on Goods and Services, the Act on Excise Duty, and other related acts. This proposed legislation introduces significant changes, particularly in the areas of reduced VAT rates and the reverse charge mechanism. Additionally, it includes a proposal to abolish the obligation to integrate cash registers with payment terminals.

Category:

Fiscal subject related

Content accuracy validation date: 24.09.2024

Content accuracy validation time: 00:00h

The draft act outlines amendments to the following legislative acts: Act of 11 March 2004 on Tax on Goods and Services; Act of 16 November 2016 on the National Revenue Administration; Act of 29 October 2021 amending the Personal Income Tax Act, the Corporate Income Tax Act, and certain other acts; Act of 10 September 1999 - Fiscal Penal Code; and Act of 6 December 2008 on Excise Duty.

Changes in the area of the reduced VAT rate system include changes to:

- resulting from the need to adapt their current scope to the limit of the categories of goods/services to which reduced rates may be applied in accordance with the VAT Directive,
- clarifying and adjusting in the area of VAT rates after 3 years of operation of the new VAT rate matrix.

The project regulates in particular:

• 0% VAT rate for rescue ships and lifeboats used at sea but not seagoing ships and boats
• maintaining the application of the 8% VAT rate for medical devices admitted to trading under the previously applicable Medical Devices Act,
• abolition of the reduced VAT rate for so-called live equines,
• the basic VAT rate applies to the supply of hemp products (Cannabis sativa) - for smoking or inhaling without combustion,
• clarification of the wording of item 10 of Annex No. 3 to the VAT Act - Fertilizers and plant protection products - usually intended for use in agricultural production, and feed and fodder for farm animals and pets,
• reducing the VAT rate on the supply of menstrual cups from 23% to 5%.

Also, the changes are introduced: JPK CIT and PIT Schemes—extension of the scope of delegation for the Minister of Finance. More precisely, the government has announced plans to amend the Act of 29 October 2021, which itself amended the Personal Income Tax Act, the Corporate Income Tax Act, and other related acts concerning income taxes. The proposed changes aim to extend the optional statutory authorization for the Minister of Finance to issue regulations that limit the scope of data required to be transferred in a structured form (JPK schemas). Under the current regulations, the Minister of Finance has the authority to specify, via regulation, certain entities that are exempt from the obligation to maintain accounting books using computer programs and to send these records in a structured form. However, the existing wording of these regulations does not permit the Minister of Finance to exempt taxpayers from sending all or part of their books in a structured form. This limitation has been a point of concern for taxpayers, who have highlighted the need for appropriate changes. The proposed amendments seek to address these concerns by extending the Minister of Finance's authority to issue regulations that can limit the scope of data required in structured form. This change is expected to provide greater flexibility and potentially reduce the administrative burden on taxpayers.

Besides these changes, there are also changes in the following topics:
• for the extension of the operation of the reverse charge mechanism for gas in the gas system, electricity in the power system, and services related to the transfer of greenhouse gas emission allowances
• abolition of the obligation to integrate cash registers with payment terminals in favor of establishing reporting of data on payment transactions by settlement agents – indefinitely
• Introduction of the possibility of refunding excise duty on passenger cars temporarily registered in the country for the purpose of exporting them abroad
• Introduction of an exemption from excise duty for passenger cars subject to professional registration, as referred to in the Road Traffic Act, used for research or development purposes in the conducted research and development activities

Changes in VAT 2025 in Poland

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