The Ministry of Finance published explanations on selected solutions clarifying certain VAT constructions introduced by the Act with 27 November 2020 amending the Goods and Services Tax Act and certain other laws (Journal of Laws, item 2419).
The tax explanations examine the specific provisions of the Slim VAT package, giving examples of their practical application, i.e.:
- 1) extension of the time limit for the export of goods at a rate 0% when taxing advance payments on exports of goods from 2 months 6 months,
- 2) extension of the deadline for deduction of VAT calculated on an ongoing basis to 4 settlement periods, in the case of monthly VAT settlements,
- 3) consistent exchange rates – adding an optional solution for taxpayers to apply to the determination of the tax base expressed in foreign currency conversion into gold in accordance with the rules on the conversion of revenue resulting from income tax rules,
- 4) introducing the possibility of deducting input tax resulting from invoices documenting the purchase of accommodation services for resale,
- 5) Increase the limit for unidentified small value gifts from 10 PLN to 20 PLN and clarification of the amount accepted for so-called low-value registered gifts as a net amount (excluding tax),
- 6) there is no need to obtain confirmation of receipt of invoices in minus,
- the introduction of a provision in the Law on the clearing of price increases, according to which, where the tax base increases, the adjustment of that basis is made in a settlement for the period during which the reason for the increase in the tax base occurred.
The tax explanations also provide information on how to apply the revised rules on Binding Rate Information and the split payment mechanism.
In addition, new rules introduced by the VAT Act on the taxation of advances received by the supplier for the export of goods are presented where, due to the specific nature of the supply, the time limit for the export of goods exceeds the period 6 months.
Explanations in pdf available below.