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SLIM VAT 3 – changes to ICS

Another of the changes proposed as part of the SLIM VAT 3 pack amending the VAT Act concerns intra-Community transactions. Currently, the draft has returned from the Senate to the Sejm, and the legislative process can be followed -> here <-

Intra-Community supply of goods currently

According to the current legislation, a taxpayer, in the absence of the required documents confirming the performance of an intra-Community supply of goods, is required to show such a transaction as a domestic supply (using the domestic VAT rate). However, upon receipt of the documents, he has the right to correct the transaction – in which case he has the option to settle it at the 0% rate and show it in the settlement for the period in which the supply was made.

However, the above regulations raised a number of practical problems. In situations where an invoice is not issued until the month following the delivery, or an invoice is not issued until the 15th of that month – in both cases, this gives rise to a tax liability in the accounting period subsequent to the period in which the supply was made.

As you can see, the tax obligation for ICS is not necessarily the same as the moment of supply. According to Article 20(1) of the VAT Act, the tax obligation for ICS arises when the invoice is issued, but no later than the fifteenth day of the month following the month in which the supply was made. The timing of the supply may occur earlier than the timing of the tax liability, so the accounting periods may now vary – depending on the physical movement of the goods within the country or the timing of the invoice.

What changes are planned?

According to the draft law, such a transaction is to be declared for the accounting period in which the tax liability for the taxpayer’s supply arose.

This is therefore intended to simplify provisions that have long caused problems for taxpayers. The new regulations are to take effect as of the effective date of the amendment. Importantly, however, they will apply not only to transactions made after the new regulations come into force, but also to those made before. Therefore, the moment of actual supply – whether it took place before or after the amendment – will be irrelevant.

It is worth noting that in addition to the JPK_V7 correction, the taxpayer will also be obliged to correct the VAT-EU recapitulative statement for the period in which the tax obligation on account of ICS arose.

However, the direction of this amendment is not fully in line with taxpayers’ demands. Admittedly, it represents in a certain way a simplification of settlements, but the legislator has not decided to meet the suggestions proposed by taxpayers that ICS should be treated like an export, in which, in a similar case, adjustments are made on an ongoing basis – at the time of receipt of delayed documents confirming the export of goods. This is therefore a more convenient and simpler solution than the current and planned ICS regulation.


According to the initially adopted effective date, SLIM VAT 3 was to take effect from January 1, 2023. However, due to delays in legislative work, the deadline was postponed until April 1, 2023.