Receipt First? Ministry has Some Unconventional Plans

The Ministry of Finance has revealed some interesting ideas for improving VAT tax collection and fighting dishonest taxpayers. According to the draft bill that can be found on Government Legislation Centre’s website, state officials would like sellers to issue receipts before they receive payment for sold goods and services. Business experts call it nothing but madness.

A receipt is a document recorded on a fiscal cash register which proves a transaction has been made. According to current regulations, it should be presented to the buyer immediately once a purchase has been made. A document needs to include several important pieces of information to be considered a receipt, including the seller’s VAT number and address, the date and time of the purchase and the number of both the cash register and the cashier.

The draft regulations which are currently being worked on state that a receipt shall be issued to the buyer without their request and before receiving the payment, regardless of the payment method. What is important, the government wants the new provisions to be effective of January 2019 which is merely weeks away. If this is the case, it will be very difficult, if not impossible, for retail sellers to adapt their cash registers on time.

The goal behind all this is obtaining higher revenue from value added tax. The new solution is to be a weapon against the sellers who fail to record transactions and, in this way, pay lower taxation. However, economic experts indicate that regulations in the current form are not in line with EU laws and that rapid implementation of the provisions may result in chaos.

The Ministry of Finance stresses the fact that the new regulations are linked to the upcoming law on online cash registers and are in the consultations phase. In other words, the final provisions may differ considerably from what we see now. The date they come into effect may change as well.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.