Whitelist
The deadline for taxpayers to submit a notice of payment to an account other than one indicated in the whitelist (ZAW-NR) will be extended from three to seven days. However, during the period of the threat of epidemic or the period of epidemic announced in connection with COVID-19, the deadline for submitting the notification will be 14 days from the date of the transfer order.
The authority to which the notification should be submitted has also changed. Until now, the notification had to be submitted to the head of the tax office competent for the invoice issuer. Under the new regulations, it is the head of the tax office competent for the taxpayer who made the payment.
PIT and CIT taxpayers will be able to include in tax-deductible costs expenses paid into accounts other than those on the whitelist of VAT taxpayers if they pay using the split-payment mechanism. Thus taxpayers who decide to make a payment using the split-payment mechanism will not have to check whether the seller’s account is on the white list.
Quick fixes
Under the amendments to the VAT Act, from 1 July 2020 changes will be introduced implementing Directive 2018/1910 involving the supply of goods in chain transactions.
As a result of the changes, the settlement of VAT under such transactions is to be unified throughout the EU.
In addition, Art. 45a of Implementing Regulation 2018/1912 introduces rebuttable presumptions regarding the evidence required to apply the 0% rate for intra-Community supply of goods.
Failure to meet the conditions introduced by the regulation does not mean that the 0% rate will not apply. In this situation, the supplier will have to prove in some other way, in accordance with the existing provisions of the VAT Act, that the conditions for applying the 0% rate have been met. This situation will not change after entry into force of the act implementing EU law. The amendment to the VAT Act does not introduce any changes in the documentation of ICS, and thus meeting the requirements set out in the act will give the right to apply the 0% rate for ICS.
Schedule of VAT rates
On 1 July 2020, the rules for inclusion of goods and services under specific VAT rates will change. The new system will be based on the Combined Nomenclature for goods and the Polish classification (PKWiU 2015) for services.
The Combined Nomenclature (CN) is a structured list allowing for classification of goods for purposes of international trade.
These changes are aimed at ensuring simplicity, transparency and user-friendliness in application of the regulations, for example by applying a single rate to entire sections of the CN whenever possible. This means a significant reduction in the number of items in the new annexes to the VAT Act, Annex 3 (from the current 187 items to 73) and Annex 10 (from 35 items to 24), which contain lists of goods and services taxed at 8% and 5%, respectively, and as a consequence a change in rates for certain goods and services.
Covering entire CN sections with one VAT rate has resulted in:
- Reduction of the VAT rate on:
- Tropical fruits and citrus fruits (from 8% to 5%)
- Some types of bread and pastries (from 23% or 8% to 5%)
- Soups, broths, and homogenized and dietetic food (from 8% to 5%)
- Some spices (mustard, ground pepper) (from 23% to 8%)
- Products for babies and children (food, teats, nappies, car seats) (from 8% to 5%)
- Hygiene items (sanitary napkins, tampons, diapers) (from 8% to 5%)
- Increase of the VAT rate on:
- Lobsters, octopus and other crustaceans, molluscs and aquatic invertebrates (including crabs, crawfish, shrimps, oysters, mussels, snails) and preparations thereof, caviar and caviar substitutes, as well as meals sold in various catering establishments with the abovementioned products as ingredients (from 5% or 8% to 23%)
- Some unprocessed spices (e.g. cumin, saffron, turmeric) (from 5% to 8%)
- ice used for food and refrigeration purposes (from 8% to 23%)
- Specialized magazines, from 5% to 8% (with the exception of regional and local periodicals printed, on disks, etc, for which the 5% rate is maintained)
- Firewood (from 8% to 23%).
Postponement of deadline for implementing JPK_V7
The deadline for implementing the JPK_V7 structure (part of the SAF-T scheme for VAT) has been postponed from 1 July to 1 October 2020.
