On June 5, 2023, an amendment to the VAT called Slim VAT 3, was published. The aim of the changes is to simplify and accelerate VAT settlements.
One of the main changes is increasing the sales limit for small taxpayers from EUR 1.2 to EUR 2 million. The small taxpayers will be thus allowed to use the cash method and quarterly VAT settlements.
Another important amendment is setting the rules for applying the exchange rate for credit and debit notes when the invoice is issued in a foreign currency. Added to the VAT Act article 31b section 1 constitutes a general rule regarding the conversion of the foreign currency exchange rate in both plus and minus correction invoices issued. The exchange rate used to convert the tax base adjustment amount on the correction invoice will essentially be the same as the exchange rate used for the original settlement. Adopting the principle of currency conversion (for the purposes of determining the tax base) based on the moment when the tax obligation arises (the so-called historical exchange rate) will fully reflect EU regulations.
What is also very important, formalities in international trade have been reduced. There will no longer be, among others: the formal requirement to have an invoice regarding the intra-community acquisition of goods, when deducting input tax on this account.
Among the other changes, there are :
1) simplifications related to the reporting of invoicing settlements. This includes, among others adapting the conditions for issuing an invoice to the e-receipt.
2) abolishing the fee for applying for Binding Rate Information (WIS)
3) the conditions for faster VAT refunds have been liberalized for non-cash taxpayers
4) the possibility of allocating funds accumulated in the VAT account for further taxes and fees have been extended, including retail sales tax
5) introduction of a system for measuring VAT sanctions, requiring the taxpayer's economic situation to be taken into account. This means that the tax authorities, when determining VAT sanctions, will take into account the specific circumstances of a given case, and the sanctions will be individualized
In general, the changes will enter into force on July 1, 2023, but many of its provisions have separate entry into force dates. For example, the provision on the possibility of moderating VAT sanctions comes into force on June 6, 2023.
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