The Ministry of Finance is preparing SLIM VAT 3

According to the announcement of the Ministry of Finance, the new simplifications implement postulates made by companies. Among them are simplifications in invoicing. According to the published document, which went to pre-consultation, the third SLIM VAT package was divided into 7 areas: improvement of companies’ financial liquidity; VAT in international trade – less formalities; wider range of VAT exemptions; less corrections and friendly VAT settlements; simpler invoicing and less obligations; reduction of VAT sanctions; consolidation and unification of binding information – simpler and clearer access to tax knowledge.

– The increasing computerisation of settlements makes it possible to abandon solutions that are outdated today. For example, the package of amendments proposes abandoning the requirement to have an invoice when deducting VAT on EU purchases of goods. Changes will also apply to the proportion of VAT and its corrections – points out Andrzej Kapczuk, tax adviser, partner in Thedy & Partners.

The SLIM VAT 3 package is also supposed to improve the financial liquidity of enterprises, hence the option to use the funds from the VAT account to pay e.g. retail sales tax or tonnage tax.

– According to the MF’s proposal, a larger group of taxpayers will be able to obtain the status of a small taxpayer. The limit for this status is to increase from EUR 1.2 million to EUR 2 million. This means an increase in the availability of cash settlements or quarterly settlements – adds Andrzej Kapczuk.

The changes will also cover, among others, some of the exemptions, conversion of exchange rates in the case of corrections and facilitations in the e-commerce package.

The changes are to come into force in the last quarter of 2022. Pre-consultations last until 14 February.