03.23.22

Introduction of Polish VAT groups

With the upcoming e-invoicing mandate expected during 2023 and new recent SAFT-requirements, Poland is overseeing a busy period in the re-structuring of its fiscal operations.

Another significant change being introduced in Poland is the introduction of new VAT groups.

Poland will permit the formation of VAT groups in Poland- these are groups which will typically be formed based on financial, economic or organisational ties. Taxpayers can be based in Poland or abroad- but if the latter, it is expected that they will conduct their business through a branch in Poland. Groups must be formed for a minimum of 3 years.

A representative of the group will perform any VAT- related responsibilities. Any transactions between the members of the same VAT group will not be subject to VAT- although transactions with entities outside the VAT group will in effect be deemed to be transactions with the entire group.

This comes with some benefits- transactions between members of the same group will not be subject to VAT and the corollary of reduced administrative-related duties relating to VAT.

These regulations are expected to come into effect on 1 July 2022.