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Poland VAT Group implementation delayed to Jan 2023

Poland joins 18 other EU member states with VAT group simplification option

Poland is likely to delay further the VAT simplifications for related companies, or ‘VAT Groups’.  The rules were to come into place from 1 July this year; but parliament has not completed their review. Questions remain about deductibility proportions where some group members are separately providing non-taxable transactions.

The terms of the Bill have also now extended intra-group reporting to Polish SAF-T JPK requirements and increased the details of intra-group transactions that must be captured.

The new rules include the option for a single VAT return for related companies, a ‘VAT group, based on EU VAT Directive rules. Read more in our Polish VAT guide.

Related VAT registered resident business will be able to consolidate their reporting into a single return and share the same VAT number. This means intra-group transactions would be made without VAT. Intra-group VAT transactions would be zero-rated, thus avoiding cash flow requirements.

For Poland, which replaced the VAT return with JPK_VAT (SAF-T) reporting, this would mean a consolidated submission of the filing each month.

Compiling Polish or any VAT or GST returns is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.

The VAT Group, Podatkowa Grupa Kapitałowa, PGK, will be similar to those in other EU countries:

  • VAT groups will be a voluntary option between related businesses;
  • businesses within the group will become jointly and severally liable to each others’ VAT
  • intra-community transactions will be effectively zero-rated;
  • losing the status of a PGK group will have an impact on the status of the VAT group, which in consequence will cease to exist; and

In the future, perhaps 2024, this would be broadened to a wider range of smaller companies.

EU VAT Group rules

Poland is looking to introduce the scheme under the rules of the EU VAT Directive Article 11 of Directive 2006/112/EC. This stipulates that group members must be closely linked financially, economically and organisationally to be treated as one taxable person. Typically, this means at least 75% share control of companies within the group, shared management or shared business goals or activities. This can include a member of the group providing goods or services that are mostly / wholly consumed by other members of the group.

Poland will be expecting one nominated member of the group to take on responsibility for the consolidated return.

VAT Calc’s VAT Filer can accurately populate any country VAT return, ESL, Intrastat of SAF-T with verified data from our VAT Calculator or VAT Auditor services

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