Government Overhauls VAT Rules to Cut Business Red Tape

The Polish government has adopted a draft bill amending the VAT law to streamline tax settlements, reduce import and export formalities, and align national regulations with European Union law.

Government Adopts VAT Bill to Ease Business Operations

Entrepreneurs will find it easier to settle accounts with the tax office, and formalities regarding the import and export of goods will be reduced. The government has adopted a draft bill on the tax on goods and services, as announced by the Ministry of Finance, outlining what will change and when the regulations will enter into force.

The new solutions will limit formalities in the import and export of goods, make it easier for entrepreneurs to settle accounts with the tax office, and adapt Polish regulations to changes in European Union law. According to the Ministry of Finance, these changes will make running a business simpler and tax settlements more transparent.

Simplified Import and Export Procedures

Entrepreneurs will no longer need to submit a certificate confirming they are active VAT payers to customs authorities in order to use simplified import tax settlement rules. A taxpayer’s status will be verified by the office without requiring additional documents. Furthermore, declarations concerning the import of goods carried out under centralized customs clearance will be submitted exclusively in electronic form to facilitate contact with the administration and speed up case handling.

Businesses will also be able to use a broader catalog of documents confirming the export of goods outside the EU. This means a single specific document will not always be required, as alternative evidence reliably confirming export can serve as the basis for applying the 0% VAT rate, thereby limiting disputes with tax authorities.

EU Regulations and Implementation Timeline

The draft incorporates changes to EU regulations concerning shipments with a value of up to 150 euros, allowing businesses to use simplified VAT settlement rules for importing such shipments despite customs regulation changes. Additionally, the project adapts Polish regulations to a ruling by the Court of Justice of the European Union, enabling shipments sent by individuals to individuals living in other EU member states—not just in Poland—to benefit from the VAT exemption on imported goods.

The new regulations will enter into force 14 days after their announcement in the Journal of Laws.