Slim VAT 2 package – when will it enter into force and what can entrepreneurs count on

A few months ago, the Ministry of Finance revealed the assumptions of a new draft – the Slim VAT 2 act. designed to simplify the invoicing procedures, reducing the formalities, as well as improving the liquidity of entrepreneurs who use the mechanism of split payment. The full Slim VAT 2 package will take effect on January 1, 2022.

Slim VAT 2 – what is important for entrepreneurs?

Among the planned solutions under Slim VAT 2, there will be a provision specifying – which delivery will have to be assigned a shipment or transport, when its organizer is the first supplier. This regulation applies to cases of export or intra-community delivery of goods.

Another change is related to the rules of making a correction in minus, which defines the specific cases determining in the declaration for which month the correction will have to be taken into account.

In a situation where the taxpayer does not settle the correct amount of tax on the import of goods in the original declaration, he will be able to do so – by submitting an appropriate correction within 4 months.

Slim VAT 2 solutions allow for the deduction of late tax on goods and services – based on an adjustment in one of the three consecutive settlement periods (or two periods – if the entrepreneur settles quarterly).

Under the new regulations, the time for taking advantage of the bad debt relief will be extended – from 2 to 3 years, counting from the end of the year in which the invoice was issued.

Duplicate invoices will also be eliminated – if the invoice is damaged or lost, the buyer is to receive a new copy from the seller. It will not be necessary to enter the unit net price on the advance invoices. It will be possible to issue invoices up to 60 days before the planned date of delivery of the goods / service, and not as before – up to 30 days

From 2022, the requirement to label correction invoices with the descriptions “correcting invoice” or “correction” is abolished. You will also not need to enter the reason for the correction.

Entrepreneurs will be able to transfer funds between separate bank VAT accounts, to which funds are transferred during split payment payments. This means that if a company has more than one bank account – it will be possible, for example, to combine funds from different VAT accounts on one.

Slim VAT 2 – since when?

The new rules of settlements and simplifications for entrepreneurs – Slim VAT 2 – will enter into force on January 1, 2022, i.e. exactly one year after the introduction of the first Slim VAT package. The implemented regulations are the result of analyzes of the Ministry of Finance, as well as voices from the accounting community and independent experts and tax advisers.