Return to the reverse charge mechanism in domestic trade
From 1 April 2023 to 28 February 2025, the reverse charge mechanism (reverse charge mechanism/RCM) has been introduced into the domestic legal order for the supply of gas in the gas system, the supply of electricity in the electricity system and the provision of services for the transfer of greenhouse gas emission allowances, writes Łukasz Woźniak, tax adviser, manager at Thedy & Partners, in Rzeczpospolita.
This is the effect of the Act of 9 March 2023 amending the Act on Enforcement Proceedings in Administration and certain other acts, which the legislator amended the provisions of the VAT Act, which the legislator also amended the provisions of the VAT Act, where the amendment of these provisions – interestingly – passed without much of an echo. As a consequence of this change, the taxpayer obliged to settle VAT is the purchaser.
This solution, represents a return to the reverse charge in domestic trade, a mechanism that was repealed as it was considered insufficient to combat tax fraud and replaced this institution with a split payment mechanism (MPP).
The mechanism, which was temporarily introduced, applies to transactions in the above-mentioned energy, provided that certain statutory conditions are jointly met. You can read about which ones in Rzeczpospolita.
The entire article can be read in Rzeczpospolita of 5 April 2023, page H5