m.i.kamiński

Changes in VAT regulations are a result of implementing into the national legal order the acts prepared by the Council of the European Union, making up the so called VAT Package 2010 (their part will enter into force in 2011 and 2015).
Throughout the history of VAT in the EU, the changes introduced currently are the most important and complex reform of the system since removal of the customs borders and implementation of single European market in 1993. They aim at facilitating the internal market and simplifying common system of taxing
as well as eliminating some pathologies (for instance double taxing of some services or habitual delays in tax return for the non-residents).

The most significant results of implementing VAT Package:
- New definition of tax payer purposed for services in international transactions,
- New general rule relating to cross border services, according to which the B2B services are deemed to be supplied, where the customer is located. Tax liability applies to the service provider, and the settlement of tax due shall be performed in accordance with the rule of so called reverse charge, well known to tax payers because this is how import of services is taxed. However, this rule has got few exceptions: e.g. services provided between the tax payer and the final customer – B2C; services related to immovable property, restaurants and catering. Temporarily, until the end of 2010, some services shall be charged the same way as prior to the amendment, i.e. where the service is actually provided: those are services relating to culture, art, education, entertainment, fairs and exhibitions. After 2010 – they shall be charged in accordance with new general rule,
- New records and reporting obligations. New general rule governing where the services are taxed is backed up by the new controlling mechanism, which shall be the broadened range of sales listings submitted every month and additionally including data relating to services provided for tax payers from other EU states, which should be settled according to the reverse charge rule in the country where the service is provided. So far, sales listings were prepared every three months and only in relation to the turnover of goods.
- New rules relating to refund of tax charged on the foreign entities. Previous mechanism based on the EU 8th Directive was replaced with new, simplified and more effective instrument. Claims for tax return shall be submitted electronically via the head of an applicable revenue office to the member state, which provides tax return; deadline for submitting claims shall be prolonged and tax payer shall be entitled to the interest on tax returns that do not meet the deadlines, as it is today. Deadline for submitting claims within the framework of the new system, which originally was determined to the end of September, is delayed due to technical issues (lack of IT background in some member states, including Poland).