The Polish Sejm passed an amendment Friday extending the SENT system—designed to monitor sensitive goods—to include concrete and mineral-based mixture transport, aiming to curb tax evasion.
SENT System Expanded to Cover Concrete Transport
The Polish Sejm approved a new amendment on Friday broadening the scope of the SENT system to encompass the transport of concrete and mineral-based mixtures. The change is intended to strengthen the tax system and reduce the grey market.
The amendment to the Act on monitoring the road and rail transport of goods and trade in fuel, as well as certain other acts, received 236 votes in favor, 194 against, with no abstentions. The bill will now proceed to the Senate.
Scope of the New Regulations
Under the new law, the SENT monitoring system will include the transport of ready-to-pour concrete and other mixtures based on mineral binders. However, finished concrete products like paving stones, slabs, and curbs will not be subject to SENT monitoring.
For large construction investments, a single reporting form will be introduced for SENT. If a contract between companies for concrete delivery exceeds 100 cubic meters, a single collective declaration covering the entire contract will be possible.
Monitoring and Data Sharing
The SENT monitoring will also cover returns of goods and the movement of goods between warehouses of the same company. Data from SENT will be automatically shared with other authorities, such as the Environmental Protection Inspection and the Agricultural and Food Products Quality Inspection.
Expected Tax Revenue Increase
According to the Ministry of Finance, expanding the SENT system, operated by the National Revenue Administration, is expected to increase tax revenues by approximately 1.2 billion PLN annually.
Rationale Behind the Amendment
The Ministry of Finance stated that the proposed regulations should significantly reduce unfair practices in the concrete trade. Including entities not conducting business activity in the SENT system aims to strengthen the tax system regarding this commodity. Analysis indicates that a significant portion of tax losses is linked to concrete deliveries to private investors—individuals not engaged in business activity.
Industry Response and Grey Market Concerns
During the Sejm debate, Deputy Minister of Finance Jarosław Neneman informed lawmakers that approximately 600 companies operate in the concrete market. He also noted that large, legitimate entities had requested the expansion of the SENT system to concrete transport due to the significant grey market presence.
“As a private individual undertakes construction, there is always a temptation, and an offer from the concrete supplier to provide it cheaper without an invoice,” the Deputy Minister observed.
SENT System Overview
SENT, the Teleinformatic Electronic Transport Supervision System, is used by the National Revenue Administration to monitor the road and rail transport of so-called sensitive goods—including fuels, denatured alcohols, vegetable oils, paints, varnishes, solvents, medical devices, and fuel trading.
The SENT system monitors the transport and trade of goods starting and ending within Poland, starting and ending outside of Poland, and starting outside of Poland and ending within Poland.
