These and several other significant amendments have been included in the draft amendments prepared by the Ministry of Finance. Amendments will be made to ten by-laws regulating tax and customs aspects of the activities of enterprises.
A new standard application form will be introduced into the Regulations on Value Added Tax Refunds.
This will eliminate unnecessary bureaucracy and speed up refunds. Currently, companies submit two separate applications, which lengthens the tax refund procedure and creates an additional burden on the State Tax Service.
The project also provides for an increase in the limit of the amount of VAT allowed for refund in accordance with Article 1016 of the Tax Code. It should be reminded that it concerns VAT payers who document transactions through AIS “e-Factura” and/or through fiscal documents issued by cash register equipment connected to the information system “Electronic Sales Monitoring”. As a result, these companies have the so-called offset VAT or the difference resulting from the excess of the amount of tax paid on purchases (including on imports) over the amounts of VAT on sales.
Transactions registered from January 1, 2023 will fall under this mechanism. If the draft is approved by the government, the limit will increase from 20% to 50% of the claimed refund amount.
In addition, it is planned to revise the frequency of thematic audits of VAT amounts reimbursed to enterprises under the simplified procedure. The STS will be able to conduct them at least once a year for large enterprises and once every two years for other enterprises.
It is also proposed to exclude from the regulations the condition limiting the right to simplified VAT refunds if during the last tax audit the amount of tax liabilities accrued by the STS exceeded 1% of the total value of supplies made in the tax period under audit.
