Poland: Ministry of Finance Opens Consultation on VAT Act Amendment for Small Businesses

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The Polish Ministry of Finance opened a consultation on June 25 regarding a draft bill to amend the VAT Act in accordance with EU Directive 2020/285, which concerns the special regime for small businesses. The bill proposes several measures:


  1. Allow small businesses established in other EU countries to choose a VAT exemption if their annual EU turnover does not exceed 100,000 euros (US$106,788).
  2. Provide an option for a VAT exemption to small Polish businesses with an annual domestic turnover below 200,000 Polish zloty (US$49,512) on their local supplies.
  3. Establish rules for determining the place of supply for certain services, following Directive 2022/542.
  4. Create procedures for Polish businesses to apply for VAT exemptions in other EU countries.
  5. Require taxpayers with a registered office in Poland to submit applications via the e-Tax Office when seeking exemptions in another member state.
  6. Impose penalties for noncompliance.


The law is expected to come into effect on January 1, 2025. Comments on the draft bill are due by July 16.


Source: gov.pl

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