Tax changes from 01 January 2014

From 01 January, 2014 will have long heralded a revolution in the Polish regulations regarding VAT. Changes from that day, coming into force will have a major impact on the way accounting for VAT in Poland. They may make it necessary to modify the current procedures of tax, and adjustment of financial and accounting programs (including the accounting rules at the time of the VAT payable and accrued, and the dates of invoices and their contents). In addition, in cases where taxpayers in the past received from the Minister of Finance, individual interpretations of any areas – from 01 January, 2014, these interpretations may lose their protective power.

The tax liability for VAT

Changes in the tax point will be the most radical changes in this field over the past 20 years. The tax point will cease to be dependent on the time of invoicing. As a rule, it will occur at the time of the delivery of goods or provision of services. Also, most of the existing requirements on special until the formation of the tax will be repealed and replaced by the new regulations – this will apply to such electricity, water and sewage services such as construction services, telecom services, leasing services, etc. There will be a significant moment while the tax provided directly to the license and transport services, as is currently the case.

Changes relating to tax liability:

• In the case of transactions that are settled in accordance with the general principles on the date of issue of the bill, this will no longer affect the tax liability that will arise at the time of delivery of goods, or the provision of services;
• services and goods deliveries that are billed periodically, are made as at the end of a billing period considered;
• invoice will be issued 30 days before the delivery of the goods or performance of services or the transaction within 15 days after the end of the month in which the transaction was executed;
• during transport services billing, in accordance with the general principles, this will take place at the time the service is provided;
• with leasing, the tax liability is at the time of issue of the invoice is created;
• in construction, as well as construction and installation services, the tax liability at the time of invoicing will be made, in relation to these services, there is an obligation to issue invoices within 30 days of the supply of this service.

Changing the definition of the tax base:

• Tax base will provide everything which constitutes consideration.

Change relating to collective invoices:

• It will be possible to issue invoices in batch files containing transactions of the billing period;
• The taxpayer will be entitled to an adjustment of the tax base in a situation where it will be impossible to obtain acknowledgment of receipt of a correcting invoice from the buyer;
• No obligation to issue invoices for the sale of services exempted from VAT if the buyer does not request them.