SLIM VAT 3 in consultation
Inter-ministerial arrangements and public consultations have begun on the SLIM VAT 3 package, which is expected to improve and simplify VAT regulations.
According to the draft presented, the changes will cover the following areas:
– improvement of companies’ financial liquidity;
– VAT in international trade – less paperwork;
– wider scope of VAT exemptions;
– fewer adjustments and friendly VAT settlement;
– simpler invoicing and fewer obligations;
– reducing VAT penalties;
– consolidation and harmonisation of binding information.
The simplifications included in SLIM VAT 3 also include:
– the introduction of new exchange rate conversion rules for corrective invoices;
– the abandonment of the obligation for online/virtual cash registers to print documents;
– the facilitation of the VAT e-commerce package;
– liberalisation of the conditions for non-cash taxpayers (VAT refund – 15 days).
– The improvement of companies’ liquidity is to apply to entrepreneurs using the split payment mechanism, or so-called split payment. The draft stipulates that funds from the VAT account will be able to be used additionally to pay further types of taxes and fees, points out Grzegorz Arczewski, senior manager at Thedy & Partners.
The limit of the value of sales, entitling to the status of the so-called small taxpayer, is also to be increased. Calculated together with the amount of VAT, it will increase from EUR 1 200 000 to EUR 2 000 000.
– This change will allow a larger group of taxpayers to use the cash method of VAT settlements, believes Grzegorz Arczewski.
It is also important that changes will take place with regard to the VAT sanction. It is to be calculated individually, taking into account the situation of the taxpayer. This proposal is to implement the guidelines of the judgment of the Court of Justice of the European Union in case C-935/19.
Most of the new rules are due to come into force on 1 January 2023. The consultation will run until 26 August.