The Senate has passed two amendments: the VAT provisions (SLIM VAT 3) and certain other laws. The first one has been amended by senators, so it will return to the Sejm for a vote. The changes include, among others, an increase in the tax-exempt thresholds for inheritance and gift tax, an increase in the 8.5% lump-sum rate limit for spouses, and further simplifications in VAT.
Increase in tax-exempt thresholds
The increase in thresholds is a significant change for individuals receiving gifts or inheritances, especially from close family members. The tax-exempt amount for gifts and inheritances received from a single close family member within a five-year period will increase from 10,434 PLN to 36,120 PLN, while for gifts and inheritances from other family members, it will increase from 7,878 PLN to 27,090 PLN.
The taxable amount will be calculated only based on the acquisition of property and property rights with a net value exceeding the following thresholds within a five-year period:
36,120 PLN – if the acquirer belongs to the I tax group, which includes spouses, descendants (daughter, son, grandchildren, great-grandchildren), ascendants (mother, father, grandparents), stepchild, son-in-law, daughter-in-law, siblings, stepfather, stepmother, and parents-in-law.
27,090 PLN – if the acquirer belongs to the II tax group, which includes descendants of siblings, siblings of parents, ascendants of spouses’ stepchildren, spouses of siblings, siblings of spouses, spouses of siblings of spouses, and other descendants.
5,733 PLN – if the acquirer belongs to the III tax group, which includes other individuals.
Higher limit for spouses under the lump-sum scheme
Changes in the personal income tax (PIT) provisions stipulate that in the case of private lease agreements, spouses will pay a lump-sum tax rate of 12.5% only on revenues exceeding 200,000 PLN, instead of the current threshold of 100,000 PLN. The change will retroactively apply to the entire year 2023, which will be beneficial for this category of taxpayers.
SLIM VAT 3 – further VAT deregulation
The approved SLIM VAT 3 package also includes several changes. From July 2023, the turnover limit for small VAT taxpayers will increase from 1.2 million EUR to 2 million EUR gross. Being classified as a small taxpayer will allow, among other things, quarterly VAT settlements instead of monthly settlements. Additionally, the requirement to submit unified control files for accounting records (JPK_PIT and JPK_CIT) will be postponed until 2026. It has also been specified that when correcting invoices, the exchange rate from the original invoice must be applied, while for collective corrections, the historical or current exchange rate can be chosen and applied.