- Changes in VAT rates since June
- CIT-8 can be submitted until the end of October
- Correction of VAT return possible after the end of activity
- Financial statement can be signed at gov.pl
Legislative works is underway on an a new matrix of VAT rates which is to eliminate doubts and absurdities in respect to VAT taxation of certain goods and services. Unified will be the rates for:
- bread and cakes – regardless of best-before period or date of minimum durability these products will be taxed at 5 percent VAT, currently three different rates (5, 8 and 23 percent) are applicable for them;
- mustard, sweet pepper (spice) and some processed spices (e.g. pepper, thyme) will be taxed at 8 percent VAT like other spices, currently they are taxed at 23 percent VAT;
- all kinds of books – printed books, books on disks and tapes, as well as e-books will be taxed at 5 percent VAT, currently e-books and certain books are taxed at 23 percent VAT.
In accordance with the new principles of setting VAT rates from 2020 in case of goods the Combined Nomenclature (CN) will be used, whereas in case of services the Polish Classification of Goods and Services will be applicable.
From June 2019, in order to confirm the correct VAT rate for a given good or service, taxpayers will be able to apply to the Director of the National Tax Information for a decision, the so-called binding rate information (WIS). Like individual tax ruling, a binding rate information will be issued within three months.
2. New rules for car leasing – tax ruling of the Director of the National Fiscal Information
On February 11, 2019 the Director of the National Fiscal Information issued the first tax ruling (file number 0115-KDIT3.4011.545.2018.2.MR) in terms of application of new rules for the settlement of expenses related to cars used in business activity.
From the beginning of this year, if the entrepreneur uses a car with a value exceeding PLN 150.000 on the basis of a leasing contract only part of the installments can be classified as tax deductible costs – in the proportion in which the amount of PLN 150.000 remains to the value of the car.
The entrepreneur who applied for a tax ruling asked if the above limitation relates only to the capital part of the leasing installment or interest. The tax authority claimed that the fees resulting from leasing contracts in the part related to the repayment of the value of the passenger car are subject to limitation. The limit therefore does not apply to the interest part of these fees. The Director of the NFI also referred to the possibility of including AC and OC insurance contributions in the tax deductible costs. These contributions are not included in the lease payment however the tax authority indicated that only AC insurance contributions cannot be fully deducted.
3. CIT-8 can be submitted until the end of October
CIT taxpayers will have more time to submit an annual tax return CIT-8. According to the draft of regulation of the Minister of Finance of February 28, 2019 they will have to do so by October 31, 2019. However, the preferential solution will cover only certain taxpayers who achieve tax-free income.
As a justification for the proposed solution the Ministry of Finance indicated that since January 1, 2019, any return submitted by the CIT taxpayer regardless of its size and the scope of activity, requires a qualified electronic signature. The requirement to have such a signature generates an additional cost of activity related to its purchase. This cost is the most perceptible by small entities, foundations or associations.
The draft of regulation covers the taxpayers (1) whose tax year started after December 31, 2017 and will end before July 1, 2019, (2) who obtain only tax-free income pursuant to Article 17 section 1 of the Corporate Income Tax Act and (3) in the tax year for which the annual tax return has to be submitted were not obliged to prepare certain declarations or information prescribed by the relevant provisions of the Personal Income Tax Act.
4. Correction of VAT return possible after the end of activity
That was the opinion of the Supreme Administrative Court in the judgement of March 6, 2019, file number I FSK 209/17. In the verbal justification the Court explained that the right to correct VAT return is determined by the fact if the person who submits a correction was an active VAT taxpayer at the time when the tax liability in VAT arose.
The Director of the Tax Chamber in Katowice was the first who presented a standpoint in the case, considering that the correction of the VAT return after the end of activity is possible, if the taxpayer was re-registered for VAT purposes. Subsequently, the case went to the Voivodship Administrative Court in Gliwice, which stated that the right to submit a correction is limited only by the period of limitation of the tax liability. Therefore, if the tax obligation has not expired yet, the taxpayer has the right to correct the return regardless of whether he is registered for VAT purposes during the correction period. This approach was confirmed by the Supreme Administrative Court which emphasized that a tax audit or a tax proceeding may be initiated against an individual who is no longer a VAT taxpayer (deregistered from VAT register), therefore by analogy, this right must also be granted to the individual.
5. Financial statement can be signed at gov.pl
As of October 1, 2018 the financial statements are prepared in electronic form and signed using a qualified electronic signature or a signature confirmed by a trusted ePUAP profile. Currently, anyone who has a trusted profile, a natural person who does not run business activity and an entrepreneur, may sign a financial statement on the website at gov.pl.
Thanks to the service it is possible to read the content of the electronic document, check whether the document is already signed and who signed it. It is also possible to check if the signatures are correct.
The solution prepared by the Ministry of Digitalisation may be a great facilitation for entities with numerous representation, because the financial statements of such entities can be signed by all board members who have trusted profile.