What should you know about the changes to VAT as a self-employed person


The government solutions package, known as The Polish Deal, deals with VAT as well. The changes are being implemented through the Act of 29 October 2021 on Amending the Act on Tax on Goods and Services and Certain Other Acts(Dz. U. [Journal of Laws] of 2021, item 2076). The new regulations will come into force as of 01 January 2022. 

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Image author: Kelly Sikkema, source: unsplash.com

Cashless transactions - faster VAT refunds 

Popularising cashless transactions is one of the objectives of the Polish Deal regulations. An incentive here is a faster VAT refund.

You can apply for a faster VAT refund within 15 days if:
- you have been an active VAT taxpayer for the 12 preceding months and you have been regularly submitting tax returns - you keep a sales register using only the cash registers through which you connect and send data to CRK (the Central Repository of Cash Registers). 
- you have a bank account that has been on the VAT white list for the 3 months preceding the application for a faster VAT refund,
- you record at least 80 percent of received payments, made with the use of payment instruments (transfer, payment card, BLIK) for sales using cash registers;
- you record at least 80 percent of sales using online and virtual registers,
- the value of your sales including tax for each accounting period is higher than PLN 50,000, as recorded through the use of cash registers for the 12 months preceding the date of application for a faster VAT refund,
- you may not show in your current return any excess of the amount of PLN 3,000 of surplus of input tax over tax due that has not been settled in previous accounting periods,

You may not apply for a refund of a VAT that is greater than double the amount of the tax on sales recorded through cash registers in a given accounting period.

The National e-Invoice System – faster VAT refunds

The National e-Invoices System is one of the changes in the amended act. In 2022, issuing and sending invoices electronically will be voluntary for every business. It will become mandatory from 2023. The website address from which the software can be downloaded will be made available in the Public Information Bulletin. Art. 87 sec. 5b of the VAT Act will have an additional provision that the tax office is required to refund VAT within 40 days. Faster VAT refunds is to be an incentive for taxpayers to use the e-invoice system.

If you meet the following conditions, you can apply for a faster VAT refunds:
– you have been an active VAT taxpayer for a minimum of 12 months preceding the accounting period and you have been submitting a VAT return for each period,
– you have been operating throughout that time a current account at a bank, or a personal account in a cooperative savings and credit union, that appears on the VAT white list,
– you do not exceed the amount of PLN 3,000 of input VAT or the difference not settled in previous accounting periods,
– you issue every invoice using the National e-Invoice System:  exceptions are invoices that cannot be issued in the form of a structured invoice, because they do not comply with the structured invoice template available on the electronic platform of public administration services and receipts with the tax identification (NIP) number from the cash register.

JPK_V7 amendment form without voluntary disclosure
As an active VAT taxpayer, you are required to submit the JPK_VAT7 return on time and to pay the VAT resulting from it. Until now, if you have made a mistake, you could submit an amendment with the so-called voluntary disclosure enclosed that helped to avoid negative consequences. Effective 2022, the JPK_V7 amendment will apply without voluntary disclosure. Thus, it is important to remember to submit the adjustment before the expiry of the limitation period for the tax liability and make the required payments.

VAT changes table eng

* Amounts in EUR have been converted at the average EUR exchange rate published by the National Bank of Poland on the first business day of October of the previous fiscal year, rounded up to PLN 1,000.

You can read the amendment to the Act here: 



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