Poland: Ministry of Finance Opens Consultation on VAT Act Amendment for Small Businesses
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:
- 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).
- 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.
- Establish rules for determining the place of supply for certain services, following Directive 2022/542.
- Create procedures for Polish businesses to apply for VAT exemptions in other EU countries.
- Require taxpayers with a registered office in Poland to submit applications via the e-Tax Office when seeking exemptions in another member state.
- 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
