2023 is an election year. Political parties have proposed various tax solutions. The election proposals have not yet been passed in the legislative process. Let's examine the most important changes that have been passed and will come into effect in 2024.
VAT
- KSeF
The biggest revolution is the introduction of the obligation to issue invoices via the National e-Invoice System. Starting July 1, 2024, entrepreneurs will be required to issue structured invoices. It will no longer be possible to issue invoices in paper or electronic form in the current format. This solution will allow tax authorities to directly access issued invoices. Entrepreneurs, on the other hand, will receive invoices issued by their contractors in real time. Using the new system will be voluntary for flat-rate farmers
KSeF requires entrepreneurs and accountants to familiarize themselves with the new system and adapt their accounting software to the new requirements. Fines are imposed for failure to comply with the mandatory use of KSeF. However, these fines will not be imposed until 2025.
- Cross-border payments
Starting next year, additional obligations will be imposed on payment institutions. They will be required to record payments to recipients based in another EU country if their number exceeds 25 within a quarter. Records will be retained for three years. The changes are intended to improve control over the flow of money between EU countries and increase the security of financial transactions.
- Binding Rate Information
In 2024, applications for Binding Rate Information (BRI) will be available only electronically. Applicants will be required to provide a telephone number or email address. This requirement will apply to all applicants, regardless of whether they are based in Poland or abroad.
- VAT on food
From 2024, the 5% VAT rate will return to basic food products, including bread, dairy products, meat, fish, vegetables, fruit, fats and oils, processed vegetables, fruit, water, and some beverages.
Income tax
- Shortened depreciation
Taxpayers who are micro, small, or medium-sized enterprises operating in municipalities with high unemployment and low per capita income will be able to individually determine depreciation rates for their own-produced fixed assets, such as non-residential buildings (premises) and structures, classified in groups 1 and 2 of the Classification, entered for the first time in the taxpayer's fixed asset register, and intangible assets. Depreciation rates will be reduced to a maximum depreciation period of 10 or 5 years, depending on the unemployment rate in the given municipality.
An individual rate will only be possible for buildings and structures constructed internally. Acquired fixed assets will not be subject to this rate.
- Possibility of waiving tax exemption
Taxpayers will be able to opt out of the tax exemption for certain grants, subsidies, subsidies, and other gratuitous benefits or amounts received from government or executive agencies. A necessary condition will be to submit a declaration to this effect to the head of the tax office before the deadline for filing the annual tax return. This option will allow for the depreciation of fixed assets acquired with funds for which the taxpayer opted out of the exemption.
- No WHT for mortgage bonds and bonds
The payer will not be required to withhold tax on interest or discount, regardless of the amount, from:
1) mortgage bonds;
2) bonds:
a) with a maturity date of not less than one year,
b) admitted to trading on a regulated market or introduced to an alternative trading system in the territory of the Republic of Poland or in the territory of a country that is a party to a double taxation agreement concluded with the Republic of Poland, the provisions of which specify the rules for taxation of income from dividends, interest and royalties.
The possibility of using this preference will only apply if the issuer submits a declaration to the head of the tax office that the issuer has exercised due diligence in informing its related entities about the conditions for the tax exemption of income from interest or discount on mortgage bonds and bonds in relation to related entities.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of December 18, 2023.
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