VAT groups possible from July
The Ministry of Finance reminds that from 1 July it will be possible to create VAT groups. This solution is part of the tax package of the Polish Deal.
Today, taxpayers with financial, economic and organisational links settle VAT separately. This will change as from 1 July. Settlements of related companies will be able to be common, as for one taxpayer.
– Formation of a VAT group will be voluntary and will allow to maintain neutrality of VAT turnover between group members. Turnover within the group shall not be subject to VAT and shall not be documented by invoices. It will not be necessary to apply the split payment mechanism or verify the contractor in the “white” list of taxpayers. VAT group as a whole will be treated as one VAT taxpayer, so one collective JPK (SAF-T file) will be submitted instead of separate JPKs for each entity – explains Grzegorz Arczewski, tax manager in Thedy & Partners.
Let us remind that VAT groups may be formed by entities connected at the same time financially, economically and organisationally. In case of financial relation, the criterion of 50% capital share has been adopted. VAT groups may be established in Poland by domestic (Polish) entities and Polish branches of foreign entities. This solution will be open to any legal form, including small and medium-sized businesses.
VAT groups will have to exist for a minimum of 3 years and it will be possible to extend this period.