We only needed to wait just a few weeks for the next package of simplifications in the tax on goods and services – the so-called SLIM VAT 2 , which is to enter into force on October 1 this 2021.
In response to the “voice of business”, on February 18, 2021, the Ministry of Finance published the next edition of the package of changes in the VAT area, the so-called SLIM VAT package 2 . Presented as a set of solutions that fit into the concept of the “Simple Local And Modern VAT” should, by definition, facilitate tax settlement by entrepreneurs and at the same time improve the liquidity of companies.
One of the goals set by the Ministry of Finance is to facilitate the settlement of invoices correcting the intra-Community acquisition of goods (WNT) and the import of services.
The proposed changes introduce provisions regulating the period in which the taxpayer should settle the adjustment lowering the tax base in the case of importing services and intra-Community acquisition of goods. Due to the lack of statutory regulations in this area, taxpayers are currently relying on the practice of tax authorities and the jurisprudence of administrative courts.
The draft provides for linking the moment of recognition of the correction with the moment of its cause. Primary causes (existing at the time of sale, e.g. incorrectly specified price, quantity) will result in retroactive settlement. Consequential reasons (occurring after the transaction) will be adjustments “on an ongoing basis” settled in the declaration for the month of occurrence of the reason for the adjustment.
It seems that in the described situation a better solution would be to link the moment of recognition of the correcting invoice to the moment (period) in which the invoice (or other document) correcting the value of the intra-Community supply transaction and the import of services was received. Such a solution would be supported by the certainty of turnover as well as reduction of administrative obligations on the part of people who post-purchase invoices.
The Ministry of Finance in the SLIM VAT 2 package also plans to waive the need to show corrections of import of services after 3 months in the “open order”, ie the obligation to retroactively correct the output tax when considering the input tax “on an ongoing basis” pursuant to Art. 86 sec. 10b point 3 of the VAT Act.
This is the correct step, although the WNT corrections have been omitted in the proposed solutions. In the justification of the amendment, it was stated that in the scope of WNT there may be frauds and abuses, hence keeping the existing provisions is justified. However, the planned package of changes will have to be supplemented by ensuring a neutral correction of the CTS in connection with the favorable judgment of the Court of Justice of March 18, 2021 in the case C-895/19 (A.), in which the CJEU found that the solution applied in the Polish act is inconsistent with the VAT Directive.