Slim VAT 3 is a package of many different changes

Slim VAT 3 is a package of many different changes

In addition to the VAT changes, there are other noteworthy things in the package. The amendment introduced a number of simplifications designed to help the taxpayer in everyday life, but also the entrepreneur in running a business. The first issue is the arrangements for inheritance and gift tax. Thanks to them, one can count on a higher tax-free amount. Belonging to tax group I, determines a tax-free amount of PLN 36 120, in group II PLN 27090, while in group III PLN 5 733. It is worth noting that the amount will be higher in the case where the taxpayer belongs to a close family.

There has also been a change to the flat rate on income from private rental, and more specifically to its taxation. This will benefit spouses, who will be able to apply the 12.5% rate. After exceeding PLN 200 000.

The amendment also introduced reforms regarding reliefs. The first of these is the rehabilitation relief. It can be used if a taxpayer has a disabled family member as a dependent. It allows for the deduction of expenses incurred. The second one is the relief for children (with disabilities). Previously, there was an income limit for parents with a disabled only child. Slim VAT 3 abolishes this establishment.

Changes can also be seen in terms of PIT. As a self-employed taxpayer, from now on

business, from now on, does not have to worry about accounting for income, as this is made possible by the e-PIT service.

The deadlines for electronic bookkeeping for JPK_PIT and JPK_CIT, which have been postponed by a year, allow the entrepreneur to prepare adequately for this obligation.

It can therefore be seen that the Slim VAT 3 package contains quite significant changes that are of importance to the taxpayer.

What are the benefits of Slim VAT 3?

The amended law is aimed at numerous tax modifications for Polish citizens, which are designed to make the process of settling accounts with the authorities faster and easier. This will increase business liquidity. Slim VAT 3 also brings with it many other benefits that taxpayers can take advantage of. These include:

  • fewer adjustments and less problematic VAT settlement – the use of the conversion rate for correcting invoices is more clarified. In addition, under certain conditions, the adjustment can be waived;
  • reduced formalities in international trade – no need for a VAT invoice;
  • simpler invoicing – the conditions for issuing an invoice are adapted to the e-paragon;
  • improved liquidity for companies – from now on, the sales limit is raised to 2 million euros. Moreover, there are more possibilities to dispose of funds from the VAT account.
  • Simpler access to tax knowledge – information from now on is issued by a single competent authority designated for this purpose, which will definitely facilitate access to all kinds of tax knowledge;

The new solutions brought by the SLIM VAT 3 package will come into effect as early as July 1, 2023.