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Quick fixes as of January 1, 2020 - implementations of regulations in the EU countries

24 June 2019 The Government Legislation Centre has published a draft law amending the VAT Directive and the Fiscal Penal Code. The aim of the project is to implement EU regulations in the area of quick fixes. However, the project has not yet been referred to the Sejm and has been stalled at the level of the Committee for European Affairs. This may seem a puzzle, as the purpose of the project is to seal the VAT regulations across the entire EU.

The implementation of quick fixes in other EU countries

It is almost a foregone conclusion that Poland will not be able to implement the quick fixes legislation before the end of 2019. At the beginning of the coming year, the taxpayers will find themselves in a situation of doubt, because the regulations of the Community law will not be adopted into domestic law in time.

As it turns out, we are not the only Member State of the European Union where the legislation on quick fixes has not yet been adopted. There are currently only twelve countries that have managed to get through the legislative path in time. These include Austria, Belgium, Bulgaria, Croatia, Denmark, Finland, Germany, Hungary, Lithuania, Luxembourg, Malta and Slovenia. It is clear now, who is actually fighting the problems concerning VAT and who is just pretending (saying a lot, but not doing much effectively).

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The European Commission proposes explanatory notes

Taxpayers can still hope that most of the solutions proposed by the EU will be reflected in Polish regulations in a similar form. We strongly recommend reading our blog series about quick fixes. The following article will take you to it.

The draft of Explanatory Notes on the "2020 Quick Fixes" published in September 2019 may prove to be helpful. The VAT Expert Group of the European Commission has developed explanations to many questionable issues and proposed directions for interpretation of the new regulations. Although explanatory notes are not the source of law, they certainly provide important guidance for taxpayers and tax authorities in the EU Member States.

Please note that some of the new provisions - i.e. changes concerning new requirements for documenting intra-Community transactions - were included in the provisions of the Council Implementing Regulation (EU) 2018/1912 of 4 December 2018 amending the Implementing Regulation (EU) No 282/2011 as regards certain exemptions related to intra-Community transactions. These regulations will start to apply from the beginning of 2020, without the need of being adopted into domestic law. Consequently, there is no longer any doubt about what awaits taxpayers from the beginning of 2020. Our "Quick fixes - the European VAT revolution” webinar explored the circumstances on the subject. If you wish to get access to the recording, feel free to contact us.

An extensive VAT amendment called “quick fixes” aims to harmonise the VAT regime applicable now and its new, profoundly amended version, facilitating intra-community transaction settlements and significantly increasing the security of tax collection. Although the changes themselves will undoubtedly simplify taxpayers' lives, the manner of their implementation in Poland is far from expected and currently causes uncertainty and unnecessary stress.

If you are interested in becoming familiar with the inevitable changes, we also recommend to read the publications of our Tax Partner Przemysław Powierza (Quick fixes po 1 stycznia 2020 r. Szybkie korekty w systemie VAT) and Tax Supervisor Piotr Wyrwa (Poland—EU Quick Fixes and Call-off Stock from 2020).

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Should you have any questions or wish to discuss the topic further, we encourage you to contact our expert, Przemysław POWIERZA:

e-mail: ekspert@rsmpoland.pl

tel. +48 61 8515 766

fax +48 61 8515 786

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