The Ministry of Finance has unveiled a comprehensive draft amendment to the VAT Act, promising significant changes for businesses and taxpayers. The proposed reforms, outlined in a new document, aim to both streamline procedures and bolster tax oversight, with dozens of modifications impacting various aspects of VAT settlement.

One of the most anticipated innovations is enhanced access to historical data within the VAT register. Businesses will soon be able to verify a contractor’s tax status for up to five years retroactively, a crucial update from the current “at the moment of verification” system. This will undoubtedly aid in due diligence and risk assessment for past transactions.

To simplify international trade, the bill introduces “VAT warehouses,” a new mechanism designed to ease settlements for entities engaged in cross-border operations. Additionally, the rules for determining the place of supply for electricity are set to be unified, removing current ambiguities related to different supply methods.

However, the proposed changes also bring expanded responsibilities. Buyers’ joint and several liability for a seller’s VAT arrears will be broadened considerably. This includes scenarios where an invoice, even if paid via the split payment mechanism, is linked to a non-existent entity, uncompleted activities, or false amounts. The scope of liability will also extend to certain intangible services, such as consulting and advertising, and selected services from Annex 15, like glazing and installation work, regardless of their individual value.

In a move to simplify some administrative burdens, the amendment will eliminate the 14-day VAT payment requirement for intra-Community acquisition of transport means. The obligation to report the taxable amount in the JPK_VAT file for certain exempt purchases from foreign taxpayers will also be waived. These reforms signal a significant shift in the VAT landscape, balancing simplification with increased scrutiny.