SLIM VAT – Change in the rules from 1 January 2021 regarding domestic negative credit notes with Polish VAT of sales and purchase invoices – Examples
19 March 2021
19 March 2021
Our Customer Relation department, in cooperation with the Accounting department, has prepared the following explanation of the changes to Polish Slim VAT regulations.
On 1 January 2021, the so-called SLIM VAT (Simple, Local And Modern VAT) came into force, introducing changes with regard to the settlement of negative credit notes. As a result of the amendment to the VAT Act the obligation to acknowledge receipt of negative credit note was abolished, a number of other obligations were introduced.
From 1 January 2021, the reduction of the taxable base (or the deduction of input VAT under a negative credit notes) may be made in the month in which the credit note was issued, provided that the documentation available to the taxable person shows that:
If the taxable person does not have the above documentation in the accounting period in which the credit note was issued, the reduction of the taxable amount is applied to the accounting period in which the documentation was received.
The parties (supplier and buyer) can sign an agreement that they will settle negative credit notes according to the old rules in 2021. Such an agreement must be signed by both parties before the first credit note is issued to the buyer in 2021.
If no agreement is signed, the buyer and the supplier will settle the negative credit notes (reduction of tax base) in accordance with the new rules in force from 01.01.2021.
Caution: Please issue the negative credit note as soon as agreed with the buyer, preferably in the same month. Please attach a copy of the correspondence with the buyer to all your negative credit notes and send this set of documents to our office (it can be via email).
If it turns out that the correspondence shows that the arrangements for the negative credit note are from January and the negative credit note was issued after the JPK file for 01.2021 was sent, then these JPK files need to be corrected and a self-complaint sent to the tax authority stating the reasons for issuing the credit note. I would like to remind you that these are also negative credit notes that you receive from your buyers.
It is possible that your customers apply the old and new rules. Therefore, please send us your agreements with buyers as well as negative credit notes for outgoing and incoming invoices with attached correspondence with the buyer (if any).
If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the getsix® website.