On October 1, 2021, the Sejm adopted the Act Amending the Personal Income Tax Act, the Corporate Income Tax Act, and Certain Other Acts, commonly known as the "Polish Deal." The entire package includes a number of changes to the VAT Act and the Entrepreneurs' Law.
Special changes are taking place in the context of cash registers, which are intended to help tighten the tax system. Cash registers with paper copies have already been withdrawn from sale, and those with electronic recording are scheduled to be phased out by the end of 2022. However, many industries are already required to switch to online cash registers. Online cash registers are cash registers that remotely transmit transaction information to the Central Cash Register Repository. As of July 1, 2021, businesses in most industries are required to use this type of device, from gas stations, car repair shops, tire shops, restaurants, and hotels to hairdressing, beauty, dental, and legal services.
These changes lay the foundation for further obligations for businesses, introduced by the amended act, in the form of ensuring the ability to make payments using a payment terminal. Article 19a is to be added to the Entrepreneurs' Law, which will require businesses to ensure the ability to make cashless payments wherever business activity is actually conducted. Any business accepting payments using a payment terminal and simultaneously operating an online cash register will be required to ensure interoperability between the devices. The act in this regard will enter into force on July 1, 2022.
To promote these settlement methods, the legislator has introduced a number of benefits for taxpayers into the bill, the most interesting of which is the accelerated VAT refund, declared by the Ministry of Finance as the fastest in Europe, within 15 days of the deadline for filing the return. The conditions that a taxpayer must meet to be eligible for an accelerated refund include:
- 80% (65% in the transitional period, until December 31, 2023) share in the gross sales value recorded at online cash registers in three settlement periods (or one in the case of quarterly settlement) immediately preceding the settlement period for which the taxpayer applies for a refund,
- 80% (65% in the transitional period, until December 31, 2023) share of payments made using a payment card, by making a mobile payment or by transfer, in relation to the total gross sales value registered at online cash registers,
- for 12 months immediately preceding the period for which the refund is being requested: he/she was registered as an active VAT payer, submitted VAT returns, and kept records of sales using only online cash registers,
- In the 3 months immediately preceding the period for which the refund is requested, the taxpayer had a settlement account or a personal account in a cooperative savings and credit union included in the so-called white list.
The total gross sales value will be determined based on data collected in the Central Cash Register Repository, and this value does not include the value of sales documented by VAT invoices issued at the cash register.
In addition to these benefits, the legislature also provides for penalties. If it is determined that a taxpayer who records sales using an online cash register fails to ensure its compatibility with the payment terminal through which payments are accepted, the head of the tax office will impose a fine of PLN 5,000 on the taxpayer.
The Senate will now work on the bill.
This article is for informational purposes only and does not constitute legal advice.
