Problems relating to Trade and Investment on Poland
14. Taxation Systems |
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Issue |
Issue details |
Requests |
Reference |
| (1) Changed Rules related to the Timing of VAT Levy | - Due to the changed rule for the Timing of VAT Levy enforced since 2014, the tax liability accrues not on the Invoice Issuing Date, but upon completion of the service provision. For transporting business, etc., it is difficult to confirm instantly the completion of the service provided. The changed rules have complicated the business operations. | - It is requested that Government of Poland (GOP) simplifies the rules. | - Tax Laws |
| (2) Irrational Procedures and Implementation of VAT Taxation System Amendment | - During the Interim Period (January through February 2014) of Amended VAT Taxation System (scheduled for enforcement after March 2014), GOP released Notification that VAT 23% (after enforcement half of the VAT 23% is deductible) would be exempted in full to Purchasers under Fleet Contract (PFC), subject to Acquisition of Licence for Commercial Use of Passenger Vehicles affixed with Partitions. However, there remain problems concerning the timeline for the process and the disclosure requirements, pending announcement of the Interim Measures. In addition, after enforcement of the New Taxation System, VAT reduction becomes available on vehicles having the same costs in fuel and maintenance, not just the vehicles destined to PFC. However, the substantive detailed requisite terms and conditions are incomprehensible so that proper explanation is hoped for. While the Interim Period pending implementation of the new VAT taxation system is proper, as it is shorter than expected, the question remains if it is really practicable as regards the nailing down of the details for the various terms and conditions, and the executability of the implementation itself. (Note) Fleet Contract: Contract in which a purchaser of the Car Insurance Policy "Owns or Uses more than 10-Cars." |
- It is requested that GOP gives, in advance, a Clear-Cut, and Easy-To-Understand Written Notification, when introducing and implementing the New Taxation System. | - VAT Taxation System |
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