MF issues clarifications on VAT groups
The Ministry of Finance has published clarifications on VAT groups. The possibility to create them will take off on 1 January 2023. The ministerial document runs to 63 pages and is divided into 13 main chapters.
The clarifications refer to the provisions that will apply from 1 January 2023. They focus on the prerequisites (conditions) for the establishment of a VAT group, the settlement rules during the operation of the group, as well as issues related to the termination of the VAT group. A lot of space is also devoted to the rights and obligations related to transition periods.
As underlined by the MF, entrepreneurs in the consultations requested that the document include clarifications regarding:
– the prerequisites for intra-group relations, including the issue of continuity of fulfilment of the prerequisites for relations,
– the simplified procedure for the import of goods,
– the topic of branches of foreign entities, including examples of transactions between a branch of a foreign entity that has entered the group and the head office of the entity or a branch from another country,
– the conclusion of an electronic grouping agreement,
– the coefficient and the pre-factor when a former group member has only carried out activities for other VAT group members.
All these elements are included in the explanations.
If you are planning to set up a VAT group next year and have any doubts in this respect, please contact Thedy & Partners: Andrzej Kapczuk