The government adopted the VAT amendment. Simplifications and new obligations for companies
The Ministry of Finance presented a draft VAT amendment in the autumn of 2025. Only now has the government adopted it. It assumes 25 changes. The main part is to enter into force later this year, on October 1. Some regulations have changed.
– This is a mixture of simplifications and disturbing solutions – experts have already commented.
One of the most beneficial changes provided for in the project is that entrepreneurs liquidating their business or closing their company will not have to submit a separate VAT-Z declaration and separate information on the preparation of a physical inventory.
On the other hand, there is a whole package of changes that tighten VAT and are therefore unfavorable for entrepreneurs. For example, payment in the split payment model will not free the buyer from the seller's joint and several liability for VAT. Today, it is enough to pay with split payment, and the tax office has no right to demand VAT from the buyer (this applies to a situation where the seller, despite the obligation, does not pay the tax to the tax office).
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How the government wants to tighten VAT
The draft (UD314) provides for deregulatory, clarifying and tightening changes. For taxpayers, the latter are usually unfavorable. Already after the assumptions for the project were announced, tax advisors warned that the changes could lead to disputes with the tax office.
This includes: about changes in joint and several liability for VAT. Generally, the VAT shown on the invoice must be paid to the tax office by the seller or service provider. Joint and several liability means that the office may demand payment of tax from the buyer if the seller fails to fulfill his obligation and does not pay the tax.
Currently, joint and several liability is excluded if the taxpayer-purchaser pays for the goods using the split payment mechanism. In such a case, the payment is split and goes to two accounts: the VAT amount goes to the VAT account to which the taxpayer has limited access, and the remainder to the entrepreneur's regular account. Moreover, the obligation to use split payment applies to the so-called sensitive goods listed in Annex 15 to the VAT Act and when the total amount due exceeds PLN 15,000.
In accordance with the draft VAT amendment adopted by the government, in some situations, the buyer will be jointly and severally liable for the seller's tax arrears despite payment using the split payment mechanism. This means that split payment will not always protect the buyer from the seller's VAT liability. This will be the case in three cases:
- when the buyer knew or had reasonable grounds to suspect that the seller would not pay all or part of the VAT,
- when the invoice states activities that have not been performed or provides amounts that are inconsistent with reality,
- when the invoice confirms activities performed under conditions of abuse of law.
The draft also states that joint and several liability may apply to transactions without economic justification, i.e. when the price is lower than their market value (amendments to Article 105a of the VAT Act).
In addition the project extends the buyer's joint and several liability:
— for intangible services indicated in the new Annex No. 16 to the VAT Act (including advisory, management, accounting, advertising and research services), if the total amount due from the VAT invoice exceeds PLN 15,000. PLN or its equivalent expressed in a foreign currency,
— when the value of intangible services purchased from one entity providing these services, net of tax in a given month, will be higher than PLN 50,000. zloty.
Proposals for changes in joint and several liability are highly controversial. As Małgorzata Samborska, tax advisor and partner at Grant Thornton, told us, the indication that joint and several liability may apply to transactions without economic justification when the price is lower than their market value is absurd. — We are talking about transactions between unrelated entities. In my opinion, any price agreed between such entities is market price. Referring to market value is therefore incomprehensible – said Małgorzata Samborska.
Moreover, the taxpayer has no tools to determine the market price. The tax authority has them. — However, the project sponsors want the taxpayer to justify it by saying colloquially that he “is not a camel” – Małgorzata Samborska told us.
What changes in the project are intended to make life easier for VAT taxpayers?
The project also includes many changes that will make life easier for taxpayers. Taxpayers:
– who will change their registered office and thus settle their accounts at a different tax office than before (change in the properties of the tax authority), they will not have to submit a VAT-R update declaration,
– they will not have to submit separate information about the physical inventory in the event of liquidation of the business (this information is reported in JPK_VAT anyway),
— they will not have to indicate the tax base in JPK_VAT in the case of the purchase of goods and services benefiting from tax exemption,
– they will not have to pay VAT within 14 days of the intra-Community purchase of a means of transport (the obligation will be abolished);
— will be able to check the taxpayer's status in the list of VAT payers from five years ago.
In addition:
– taxpayers who want to use the VAT refund under the TAX FREE system, will be able to make the so-called e-clearance in the TAX FREE terminal; the changes will enable travelers to independently and voluntarily declare the export of goods included in the TAX FREE electronic document using IT tools provided by the National Tax Administration (TAX FREE terminals);
– the project envisages the introduction of the so-called VAT warehousewhich is intended to simplify the settlement and collection of VAT for entities operating in the field of international trade in goods. This procedure is intended to enable the application of a zero VAT rate for transactions carried out in the warehouse. Tax liability will arise only when the goods are removed from the VAT warehouse procedure. This is a solution known from other European Union countries, aimed at supporting international trade.
Author: Łukasz Zalewski, journalist of the Law section, Business Insider Polska
