Poland: Reverse charge mechanism extended until 2026
Poland will continue applying the reverse charge mechanism for exchange-traded supplies of gas, electricity, and emission allowances until the end of 2026. The extension follows the passage of a bill through the Polish Senate with an 83-2 vote on January 31, after approval by the lower house of parliament on January 24. The bill now awaits the president’s signature.
Key provisions of the bill
- Reverse charge mechanism extension: Initially introduced in 2023 and set to expire on February 28, 2024, the measure shifts VAT settlement responsibility from the seller to the buyer, helping to address VAT fraud and simplify tax administration.
- 0% VAT rate expansion: The bill broadens the scope of the 0% VAT rate to include a wider range of rescue ships and lifeboats.
- Excise duty exemption: Passenger cars registered in Poland for use in test drives will be exempt from excise duty.
- Clarifications on reduced VAT rates: The legislation provides further details on the reduced VAT treatment for fertilizers, plant protection products, and animal feed.
If signed into law, the bill will extend VAT-related measures beyond their initial expiration dates, maintaining the current framework until the end of 2026.
Source: senat.gov.pl
