Michaela Merz


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POLAND: Mandatory split payment mechanism to be introduced as from 1 July 2019


On 23 January 2019, the European Commission published a draft derogation decision enabling Poland to introduce a mandatory split payment mechanism for selected goods and types of business operations.

The project assumes that Poland has the right to use the obligatory split payment in the period from March 1, 2019 to February 28, 2022. Please find below the most important information resulting from the draft derogation decision: Continue reading


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POLAND: Planned changes in the scope of VAT rates as of 1 April 2019


The system of VAT rates in Poland is complicated causing difficulties in running a business, due to the need for the taxpayer to correctly assign goods or services to the appropriate grouping of the Polish Statistical Classification of Goods and Services (PKWiU). Sometimes even a small detail may impact the level of the VAT rate (e.g. yogurts with grains 8%, regular yogurt 5% VAT).

The Ministry of Finance has published another draft amendment to the VAT Act (of 8 November 2018), which concerns the proposal to change the VAT rates system in Poland . Some changes are expected to take effect from 1 April 2019 (e.g. lower, 5% VAT rate on e-publications) and some from 1 January 2020 (majority). Continue reading