Polish Sejm Approves Broad VAT Reform Package to Simplify Compliance

The Polish Sejm has approved amendments to the VAT Act and the Tax Identification Number Act, introducing a broad package of VAT reforms aimed at simplifying compliance, clarifying existing rules, aligning legislation with CJEU case law and strengthening the VAT system. The amendments will now be reviewed by the Senate.

Important Changes

The reform includes measures affecting JPK_VAT reporting, VAT registration, cash registers, TAX FREE procedures, VAT warehouses, intra-EU vehicle purchases and contractor verification.

Administrative burdens will be reduced by:

• removing the obligation to submit separate physical inventory information
• eliminating the 14-day VAT payment requirement for intra-EU purchases of vehicles
• allowing VAT payer status to be verified retrospectively for up to five years
• limiting interest on import VAT where delays are beyond the taxpayer's control

The amendments also clarify rules on electricity supplies, VAT exemptions for small businesses, deposit systems and reduced VAT rates for certain disinfectants.

To strengthen VAT compliance, the reform introduces changes to VAT registration, expands buyer liability in specific cases involving unreliable suppliers and includes new rules supporting the continued digitalization of cash registers.

The legislation also incorporates CJEU case law by updating rules on taxpayer status, the application of the 0% VAT rate and input VAT deduction.

Implementation Timeline

• October 1, 2026: Most provisions enter into force.
• January 1, 2027: Changes affecting VAT warehouses, intra-EU vehicle purchases, cash register deregistration and virtual cash register servicing become effective.
• July 1, 2027: Replacement of fiscal memory in cash registers with electronic-copy recording will no longer be permitted.
• July 1, 2028: Travelers will be able to self-declare TAX FREE exports electronically using National Tax Administration tools.