A new matrix of VAT rates was applied to cash registers

The 1st May, 2019 is the effective date of Act of 15th March, 2019 amending the Tax on Goods and Services Act and of the Trade Metrology Act (Journal of Laws [Dz. U.] of 2019, Item 675), i.e. the so-called On-Line Cash Registers Act. The new generation of cash registers will transmit the data to a Central Cash Register Repository.

The 1st May, 2019 is the effective date of the Regulation of the Minister of Finance of 29th April, 2019 concerning Cash Registers (Journal of Laws [Dz. U.] of 2019, Item 816). The Regulation provides many new solutions, including a new matrix for the VAT rates that are programmed into cash registers.

VAT rates for cash registers as of 1st May, 2019.

Para. 6.1. (5) of the Regulation presents the guidelines concerning the assigning of the VAT rates to specific letters:

6. 1. The taxpayers who keep the [VAT] records of shall:
(…)

5) the letters ‘A’ to ‘G’ shall be assigned to the rates or exemptions attributed to the names of the goods and services, as follows:

a) the letter ‘A’ – a standard tax rate of either 22% or 23% is set,

b) the letter ‘B’ – a reduced tax rate of either 7% or 8% will be applied,

c) the letter ‘C’ – a reduced tax rate of 5% shall be applied;

d) the letter ‘D’ – the reduced tax rate of 0% shall be assigned;

e) the letter ‘E’ – shall be assigned to an exemption from tax;

f) the letters ‘F’ and ‘G’ – other rates will be assigned, including 0% (technical zero) in the event of taxable sale transaction as referred to in Article 119 Sec. 1 or Article 120 Sec. 4 of the Act;

§ 59 of the Regulation provides as follows:

59. Taxpayer(s) using cash register(s) as of the effective date of this Regulation may, until 31st July, 2019, apply the hitherto letter points from ‘A’ through ‘G’ to tax rates or exemptions from tax that are attributed to the names of goods and services.

It follows from the above that cash registers that had been registered before the effective date of the new regulations, i.e. prior to 1st May, 2019 require a change in the VAT matrix. To this end, deadline until 31st July, 2019 is granted to the owners of the cash registers.