On entry into force, the President expects a bill signed by 25 July 2014 amending the Goods and Services Tax Act and the Tax Ordinance. Act implements a revised Article 5 Directive 2008/8, introducing new regulations on the provision of telecommunications, broadcasting and electronic services to non-taxable persons.
Under the new regulation, the place of supply of these services is the place of residence, residence or habitual residence of a non-taxable person, which means the need to register and settle VAT in the country of supply of the service.
Simplification in this respect will be the VAT system MOSS (Mini One Stop Shop – principle one window), which will allow to settle tax only in one Member State, subject to certain rules and requirements. In particular, the taxable person will be required to apply the tax rates applicable to the recipient country.
These rates, prepared by the European Commission, should be helpful in this regard. The taxpayer will also apply the invoicing rules to the relevant consumer country.
The taxpayer will be required to keep detailed records in electronic form to distinguish the amounts of tax per Member State. The allocation of these amounts, once paid by the taxpayer, will be the responsibility of the tax authorities of the Member State. The submission of declarations will take place quarterly, up to 20 the day of the month, even if this 20 the date of the month will be Saturday or public holidays.
The new accounting rules will have significant consequences. Tax payers will be forced to update the rules on the provision of services, in connection with the obligation to establish the consumer residence. The determination of the place of benefits will be the basis for determining the amount of tax and price. An update or amendment of the accounting system may be necessary to determine the appropriate rate of invoice tax. Furthermore, taxpayers will be exposed to abuse by recipients.
Tax payers who wish to use the simplified procedure shall submit an electronic registration declaration to the warden. second Mazovia Tax Office Warsaw-Śródmieście until the day 31 December 2014. Applications may be submitted from 1 October.