Important changes in VAT settlement. The government is expanding the OSS procedure

On Thursday, a draft amendment to the VAT Act was published on the website of the Government Legislation Center, the aim of which is, among others, extending the scope of application of the One Stop Shop (OSS) procedure to include gas, electricity and heat supplies.

On Thursday, a draft amendment to the Goods and Services Tax Act was published on the website of the Government Legislation Center. The aim of the project is to implement some of the EU regulations included in the ViDA legislative package (i.e. VAT in the digital age).

The project prepared by the Ministry of Finance includes, among others: regulations that are intended to improve the functioning of the solutions introduced as part of the e-commerce VAT package. This includes: to clarify the provisions regarding taxpayers facilitating the supply of goods using an electronic interface such as a trading platform, platform, portal or similar means, i.e. the so-called recognized suppliers. The project – in line with EU regulations – specifies that the regime of the so-called recognized supplier also covers supplies “carried out within the territory of the Community – apart from non-taxable persons – also to a taxable person or a non-taxable legal person, in the case of which intra-Community acquisitions of goods are not subject to VAT”.

Extension of the OSS procedure and an end to call-off stock. What does the amendment to the VAT Act assume?

The project also clarifies the provisions regarding the moment of occurrence of the event giving rise to tax liability in relation to the supply of goods or the provision of services settled under OSS (one stop shop) procedures: EU and non-EU.

The project also includes provisions that limit the need for companies to register for VAT purposes in various EU countries. The idea is to expand the scope of the EU OSS procedure by including the possibility of settling VAT in the case of the supply of gas in the gas system, electricity, heat or cooling energy through heat or cooling energy distribution networks.

The project also contains provisions aimed at preventing new movements of goods under the call-off stock procedure after June 30, 2028. This procedure will be replaced by the TOOG procedure. The TOOG procedure will consist in the possibility of settling VAT on the movement of own goods between Member States via the OSS system.

The proposed act is to enter into force on January 1, 2027, except for some provisions that enter into force on July 1, 2028 (PAP)

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