From 1st of January 2022 new requirements in the TAX FREE procedure
25 November 2021
Numerous amendments to the VAT Act passed in July did not omit the TAX FREE system. The amended regulations will come into force as soon as January 1, 2022. Therefore, entrepreneurs who have not yet adjusted to the new regulations have little time left to implement the necessary changes in their companies.
Tax Free procedure
TAX FREE is a procedure that allows travelers from outside the European Union to recover VAT included in the price of products purchased within the EU. Receiving a refund under this scheme is possible under certain conditions:
- the cost of purchases must exceed 200 PLN,
- transactions must be confirmed by a receipt from a cash register,
- the export of the intact purchased goods intact has to be confirmed by the Customs Service,
- the purchased products cannot be intended for further resale.
Until now all formalities related to VAT recovery were completed traditionally – with the use of paper documents. Since January this state situation is going to change. The whole procedure will be conducted electronically using specially prepared National TAX FREE ICT System, which will be available via Tax and Customs Electronic Services Portal (PUESC).
Entrepreneurs who want to enable their clients to use TAX FREE will have to register on the PUESC Portal. However, this is not the end of changes. In order to be able to issue electronic documents required by new regulations – it will be necessary to have at least one active online cash register.
Effective registration in TAX FREE system will require from the entrepreneur to:
- indicate the place where the sales will be subject to tax refund under TAX FREE procedure,
- assign cash register numbers to indicated places,
- authorize employees (with their accounts on the PUESC Portal) to operate TAX FREE system and give them appropriate permissions,
- Indicate an agent who, on the basis of a concluded agreement, handles the refund of VAT to travelers, unless the refund is made by the entrepreneur himself.
Only companies with an active VAT taxpayer status can apply for the TAX FREE procedure. Moreover, retail units indicated in the system must be marked with a special information sign, specified in the act. Detailed information about the tax refund procedure (in written form) in Polish, English, German and Russian should be available on the place.
More information about registration in the system and functioning of the procedure can be found on the website of the Tax and Customs Electronic Services Portal (PUESC) [PL].
If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.
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