Poland: Pending legislation concerning VAT on e-commerce; withholding tax rules further delayed

Pending legislation concerning VAT on e-commerce transactions

Pending legislation concerning VAT on e-commerce transactions

Pending tax legislation concerning value added tax (VAT) would implement EU provisions on the application of VAT on e-commerce transactions.

VAT and e-commerce

The Lower House passed a bill to amend the VAT law and to implement into Polish law the EU provisions on the VAT e-commerce package. These measures would aim to revamp the VAT collection system and tighten tax collection for cross-border electronic trade between companies and consumers. EU rules require the amendments to be implemented by the EU Member States by 1 July 2021.  The bill is next pending before the Upper House of the Polish Parliament.

Proposed changes to excise tax regulations

A draft bill to amend the excise tax (duty) rules would implement provisions of the EU alcohol and horizontal excise directives, with transposition by EU Member States being 30 June 2022. The bill would relate to computerization of the movement of goods when released for consumption in the territory of an EU Member State under the EMCS system; harmonization of excise and customs procedures, in the context of implementation of the Union Customs Code; and inclusion of regulations to provide for consistency between the electronic administrative document (e-AD) and the customs declaration for export and at importation. 

Changes to VAT bad debt relief

Draft legislation would amend the rules for bad debt relief for VAT purposes. The proposal would waive the requirement for the debtor to remain an active VAT-payer and not to carry out restructuring or bankruptcy proceedings. The proposal does not abandon a requirement for the creditor to be registered as a VAT-payer, although a similar rule has been challenged by the Court of Justice of the European Union (CJEU).

Withholding tax collection rules further delayed

The Ministry of Finance announced plans to further postpone the amended withholding tax collection rules, probably until the end of 2021. The Ministry of Finance announced that the legislative work is coming to an end and the relevant draft will be adopted by the end of 2021. 

Read a May 2021 report prepared by the KPMG member firm in Poland



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