The Polish government has announced a simple, local, and modern ("SLIM") VAT initiative. The SLIM VAT initiative includes changes in four main areas:

• Simple invoicing:
  • The documentation requirements will be simplified for correction invoices where the taxable amount is lowered (in-minus), including that only documentary proof of the customer’s agreement is needed; and
  • Correction invoices where the taxable amount is increased (in-plus) will be permitted in the same VAT reporting period as the original invoice;
• Support for exporters:
  • Advance payments on exports may benefit from zero-rating if the goods are shipped up to six months after the payment, which is up from the current two-month limit;
• Common exchange rates with income tax:
  • Taxpayers will be allowed to apply the same foreign exchange (FX) rules for VAT purposes as are applied for corporate/personal income tax purposes, allowing taxpayers to set one common exchange rate to settle transactions;
• Financial benefits:
  • Input VAT on purchases may be deducted up to 4 months after a transaction, which will eliminate frequent and unnecessary VAT adjustments;
  • Deduction of VAT from the invoice for accommodation services purchased for resale will be allowed, such as the purchase of accommodation services for a business client; and
  • The VAT-free low-value gift allowance will be increased from PLN 10 to PLN 20.

The SLIM VAT initiative is expected to be implemented in early 2021.