Tax news - page 3

On 26 March on the website of Polish Sejm a draft act amending the act on special arrangements related to preventing, counteracting and combating COVID-19, other infectious diseases, and resulting states of emergency, and certain other acts was published. The draft act will be considered by the Sejm this week.

On 19 March 2020 the Ministry of Finance posted on its website an announcement on new tax solutions aimed at minimising adverse economic effects being a result of the outbreak of the coronavirus pandemic (the so-called anti-crisis shield program).

From 1 April 2020, large enterprises will be obliged to submit a new SAF-T (in Polish: JPK_VAT) that is going to replace the VAT return and the previous SAF-T. Other entities, i.e. small and medium-sized enterprises and micro-entrepreneurs will have to follow suit from 1 July 2020; however, they have the right to apply this new solution already from April this year. They must keep it in mind, though, that once they submit a JPK_VAT, they cannot return to the old regime.

26 February 2020 The Supreme Administrative Court (NSA) issued a judgment on the permanent place of business for VAT purposes of an entrepreneur established abroad. The judgment may be important for foreign entrepreneurs, but also for contractors providing services to such customers on entrusted materials.

A micro-account is an individual tax account generated for individual taxpayers, which is used to pay PIT, CIT and VAT.  As of 1 January 2020 taxpayers and employers (payers) will pay PIT, CIT and VAT to the tax office using it.

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 BDO register includes entities that market products and packaged products and manage waste. It is an integral part of the product, packaging and waste management database. It makes up an intergral part of the base on products and packagings and waste management. BDO allows for the collection of information regarding waste management and ensures that the registration, recording and reporting obligations can be done online. Depending on the type of business, entrepreneurs are entered to the register either at their own request or ex officio.

On 6 August 2019, the President of the Republic of Poland signed the Act of 19 July 2019 Amending Certain Acts in Order to Reduce Payment Backlogs. This amendment, aimed at strengthening the financial liquidity of businesses, introduces an obligation for certain entrepreneurs to submit annual reports on applied payment terms to the Minister of the Economy.

Explanations regarding how to file and what to include in a declaration on preparing local transfer pricing report has been published on the Ministry of Finance’s website. The information concerns declarations submitted under the new laws applicable from 1 January 2019 if they are applied to transfer pricing reports covering 2018 (link). This newsletter offers a detailed explanation of that issue.

On 5 March 2019, the Sejm received the governmental draft act amending the Value Added Tax Act and the Tax Ordinance Act. After a long while, on 3 July 2019, the Sejm decided to send the draft to the Public Finance Committee. Given the fact that the amendment includes significant changes of the VAT rates, it is a good idea to learn about the planned amendments today.