On the 23 September 2016, the Ministry of Finance in Poland published an amendment of the Polish VAT Act in which it proposed the removal of quarterly VAT filings.

To date the option to file monthly and quarterly returns has been available for all VAT registered businesses. From the 1st January 2017, it is proposed that all non-established and resident taxable entities will file VAT returns monthly.

There is also a proposal for an introduction of a new way of paying VAT for large entities whose annual turnover exceeds PLN 5,000,000. These companies will be required to make pre-payments each quarter based on the VAT due in the previous quarters VAT return.

Its understood that there would be three payments due for each return quarter; two equal pre-payment amounts and one reconciling payment.

  • The pre-prepayment amount would be calculated as 1/3 of the prior quarter’s total VAT liability.
  • The 3rdpayment would reconcile the quarter and hence be the balance of the VAT due after the previous two payments had been received

It is anticipated that a high number of large businesses trading in Poland will be affected by these change. Consequently, they now have to conduct a thorough review of their current filing procedures and immediately address any necessary improvements needed to meet these new obligations.