Poland is set to implement a range of compliance simplifications as part of its simple, local and modern (‘SLIM’) VAT initiative. Poland’s SLIM VAT phase 1 was introduced at the start of 2021. SLIM VAT systems were conceived for developing countries seeking to implement or update their VAT regime. Angola’s SLIM VAT system was introduced in 2019.
SLIM VAT 2: October 2021
The next phase of reforms includes over ten new reforms:
- More flexibility on reporting import VAT through VAT returns
- Allowance to deduct 100% on motor vehicle costs VAT
- Extension on VAT bad debt relief to three years
- More options to use VAT account amounts paid or accrues
- Update to the Split Payments VAT withholding regime whereby customers pay amounts on certain sectors directly to suppliers’ locked VAT bank accounts.
- More options on rolling forward VAT deductions on tax suffered