Tax alerts - archive - page 3

The split payment is a mechanism which was introduced in the Polish legal system with the Value Added Tax Act Amendment Act of 15 December 2017 (Journal of Laws of 2018 item 62), based on solutions used in other European countries (Czech Republic, Turkey, Romania, Italy). However, Polish solution is innovative in many aspects, using solutions that were not yet attempted elsewhere. For this reason in the first phase of operation the split payment system will be voluntary, and the Finance Ministry will be monitoring the effects of its introduction (not only fiscal impacts, we hope).

As of January 2018, new rules have been in force on the so-called minimum tax on commercial real estate. The Ministry of Finance is currently working on the introduction of changes to that tax, which are the result of consultations between the Polish government and the European Commission (hereinafter: EC).

In the previous Tax Alert, we were informing you about the plans of the Ministry of Finance concerning the prolonging of the deadlines related to the submission of documents and reporting within the scope of tax documentation. Now it is certain – the order in question was signed by the Minister of Finance and on 15 March 2018, which is the day of its publication (Journal of Laws 2018, item 555), entered into force. In the Tax Alert in question, we shall summarise the regulations introduced within that scope.

On 24 January 2018, the Ministry of Finance issued a general interpretation clarifying some technical issues related to the preparation of tax documentation. The document clarifies issues that are confusing for taxable persons concerning, e.g. the method of determining documentation thresholds and relevant classification of transactions as transactions of one type.