SLIM VAT 3 Act published – the summary of key changes

SLIM VAT 3 as of 1 July - key package changes

The Act of 26 May 2023 amending the Value Added Tax Act and certain other acts, the so-called SLIM VAT 3 package, was published in the Journal of Laws on 5 June 2023. Most of the new provisions will come into force on 1 July 2023.

The Act introduces changes mainly in the area of VAT settlements including:

• an increase to EUR 2 000 000 of the sales value limit (including tax) entitling to small taxpayer status;
• standardising the rules on the issuing of binding information, including WIS;
• new exchange rate conversion rules for correcting invoices;
• modification of the rules for reporting an intra-Community supply of goods if a taxpayer has received the documents concerning the supply with a delay;
• the abolition of the requirement for a taxpayer to hold an invoice documenting an intra-Community acquisition of goods as a condition for exercising the right to reduce the amount of tax due by the amount of tax calculated on that account;
• the opportunity to get VAT refunds sooner if taxpayers make non-cash transactions;
• the introduction of new criteria for determining VAT sanctions;
• extending the possibility of disposing of funds deposited in the VAT account.

SLIM VAT 3 package - other changes

The amendment also introduces changes to other acts such as, among others, the Inheritance and Donation Tax Act, the Excise Duty Act, the Personal Income Tax Act, the Corporate Income Tax Act, the Tax Ordinance Act, the National Fiscal Administration Act.

The changes provided for under the SLIM VAT 3 package also include:

• an increase in the tax-free amounts for inheritance and donation tax;
• allowing self-employed taxpayers to benefit from the e-PIT service;
• more favourable rules for the settlement of lump-sum payments from private rental income for spouses;
• VAT tightening in the E-commerce sector - mainly by introducing additional obligations for payment service providers.