The Ministry of Finance published and submitted for public consultation a draft of changes – intended – to simplify the VAT settlement, as well as the tax refund system for travelers (TAX FREE).

The most important changes in the SLIM VAT package include:

1) extending the deadline for deducting input VAT on an ongoing basis up to a total of 4 settlement periods (in the case of taxpayers who settle quarterly, there will be no changes);

2) adding an optional solution for taxpayers regarding the possibility of converting a foreign currency into PLN in accordance with the principles of converting income resulting from the provisions on income tax (consistent exchange rates);

3) introducing the possibility of deducting input tax resulting from invoices documenting the purchase of accommodation services – only for the purpose of resale;

4) increasing the limit on unchecked gifts of small value from PLN 10 to PLN 20;

5) no need to obtain confirmation of receipt of in minus correcting invoices – the taxpayer will be entitled to reduce the tax base already at the time of issuing the invoice, but on the condition that he has documentation regarding an agreement with the buyer of the goods or service on the conditions for reducing the tax base in accordance with this invoice;

6) introduction of a provision on the settlement of corrective invoices increasing the price.

A significant part of the SLIM VAT package is to enter into force on January 1, 2021.