Another package of simplifications of the tax on goods and services will enter into force on January 1, 2023. Like its predecessors SLIM VAT and SLIM VAT 2, it aims to simplify and facilitate the application of the provisions of the VAT Act.

SLIM VAT Package 3 covers 7 areas:
1. Improving the company’s fiscal liquidity,
2. VAT in international trade,
3. Broader VAT exemptions,
4. Less correction and friendlier settlement process of VAT,
5. Easier invoicing and less burden
6. Reduction of VAT sanctions,
7. Consolidation and standardization of binding interpretations.

SLIM VAT 3 – the most important changes
SLIM VAT 3 is solving problems related to the proportion of VAT due and as a consequence burdensome correcting of these VAT proportions. The introduced changes will relieve the accounting departments, the company and reduce the amount of input tax shown in the place of VAT.

In the following year, which may also decide not to issue advance request invoice, which will be in exact value of the final invoice, provided that the delivery of the advance and the delivery of goods or services is provided in the same billing period.

The proposed change will effect and improve the liquidity of companies that have an special bank account for split payment mechanism.

Additionally, the small customer sales value limit, calculated together with the amount of tax 2, will be increased from EUR 1,200,000 to EUR 2,000,000. The cash-based method, it will become now available, even for a broader group who now will be able to file quarterly.

                                                                                                                                                                                                                                                                                              Author: Monika Bień, Patrycja Staroń