It is 27 September 2021. We invite you to the next episode of the “Weekly Tax Review” prepared in cooperation with tax experts in KPMG in Poland.

Amendments to Aid Act under the Anti-Crisis Shield

On 22 September 2021, a draft bill amending the Act on aid granted to businesses under the Anti-Crisis Shield was published on the Government Legislation Centre’s website. The draft bill provides for, inter alia, limiting the list of instances in which province labour offices may demand reimbursement of the entire amount of aid granted under the Shield in form of subsidies to co-finance employee remuneration. According to the literal wording of the currently applicable provisions, entities using the aid are required to reimburse the total amount granted, interests included, in situations where they dismissed at least one employee whose remuneration was subsidized from the aid or where at least one of the declarations of meeting the conditions for being granted the aid they submitted turned out to be factually inaccurate. Under the amended provisions, however, reimbursement of the entire received amount should be applied only in cases where the entity that received it did not meet the key criteria for granting the aid, i.e. submitted a declaration of decrease in turnover, tax and social security contributions clearance certificate or a declaration of not meeting the conditions for declaring bankruptcy, which turned out to be factually inaccurate. In turn, in the case of demonstrating that individual employees for whom no support was granted were dismissed, a proportional reimbursement will apply. 

Indirect discount from a manufacturer with no impact on VAT settlements

In its ruling of 16 September 2021 (case file I FSK 705/18), the SAC pronounced itself on whether it is necessary to reduce input tax calculated in connection with being granted an indirect discount by the original producer and not by a party to the material transaction. The SAC ruled that in light of the judgment of the Court of Justice of the European Union of 11 March 2021 in the case C-802/19, it should be assumed that the relationship between the foreign supplier and the Company is limited to submission of an application for the payment of the bonus by the Company and the subsequent payment of the bonus by the supplier, thus it remains outside the sphere regulated in the VAT Act and does not have any VAT effects. As a result, the supplier should not cut the taxable base and the Company does not have to reduce the input VAT.

New principles of submitting VAT-26 returns

Pursuant to the Act of 24 June 2021 amending the act on the Value-Added Tax and the Banking Law (introducing a raft of solutions jointly dubbed “Slim VAT 2 package”), starting from 1 October 2021, new deadlines for submitting VAT-26 returns shall apply. The obligation to submit VAT-26 returns rests with taxpayers using motor vehicles exclusively for business activity, for which they are required to keep a vehicle mileage record. Under the new provisions, taxpayers have to submit VAT-26 returns by the 25th day following the month in which the first expense related to such vehicles is incurred, however, not later than on the day of submitting the VAT records. Yet, in cases where the method of use of the motor vehicle has changed, the taxpayer has to submit VAT-26 until the end of the month in which the change took place. Furthermore, a new decree determining the new VAT-26 template is expected to enter into force on 1 October 2021. 

Ministry’s replies to comments on TP amendments

On 20 September 2021, replies to comments received as part of the pre-consultation process held for amendments to transfer pricing regulations, expected to enter into force on 1 January 2022, were published on the website of the Ministry of Finance. The Ministry informed that over hundred comments, opinions and positions related to the new provisions were submitted in the pore-consultation process, some of which have been already included in the tax bill introduced under the Polish Deal program, in particular with regard to the definition of related entities, conditions entitling to make a transfer pricing adjustment, or specification of the value of a controlled transaction in the case of a surety or guarantee. According to the Ministry, remaining comments may be taken into consideration during the subsequent analytical works on further tax amendments in the transfer pricing area.

Amendments to provisions on cash register software

On 16 September 2021, a draft decree of the Minister of Finance, Development Funds and Regional Policy amending the decree on cash registers in form of software was published on the Government Legislation Centre’s website. Introduction thereof was necessary due to the planned extension of the obligation to record sales with the use of automatic sales cash registers (first in automatic and self-service car washes). The draft is currently assessed by the government. The new provisions are expected to enter into force next day after they are announced.

Amendments to the Excise Duty Act

On 17 September 2021, the Lower House of the Polish Parliament passed an amendment to the Excise Duty Act. The principal purpose thereof is to enable the continuation of the activity of a tax warehouse in the event of resignation by the current warehouse keeper, without the need to terminate the application of duty suspension procedure for excise goods stored in that warehouse. The act will now be passed on to the Senate and is to enter into force on the day following its announcement.