New MDR Regulation and Draft VAT Regulation

News | 2020-07-06

On 1st July 2020, a new Regulation of the MF extending certain deadlines for disclosure of tax schemes and exchange of tax information with other states entered into force (“MDR Regulation”).

In addition, a draft Regulation amending the Regulation on goods and services subject to preferential VAT, and conditions for application thereof, has recently been published (“Draft VAT Regulation”).

The most important changes introduced by the MDR Regulation and Draft VAT Regulation are presented below.

 

MDR Regulation
  • The MDR Regulation forms secondary legislation to the so-called Special Coronavirus Act.
  • It has extended deadlines for exchange of tax information, and the deadline for disclosure of cross-border tax schemes, including certain deadlines set in the Act of 28th May 2020 (“Act”), which entered into force on 1st July 2020. (read more here)
  • This means that the two pieces of legislation entered into force on the same day, both extending deadlines for fulfilling MDR obligations. The Act has deferred the deadlines indicated in the General Tax Code, while the MDR Regulation has extended the following deadlines set in the Act:
    • the deadline for disclosure of cross-border tax schemes to the Head of the National Tax Administration Office by:
      • promoters – until 31st January 2021 (formerly extended by the Act until 31st July 2020);
      • beneficiaries – until 14th February 2021 (formerly extended by the Act until 16th August 2020);
      • supporters – until 28th February 2021 (formerly extended by the Act until 31st August 2020), with the supporter being required to inform the promoter or beneficiary of recognising an arrangement as a cross-border tax scheme;
    • the deadline for disclosure of the beneficiary’s details to the Head of the National Tax Administration Office by the promoter or supporter – until 30th April 2021 (formerly extended by the Act until 31st August 2020);
    • the deadline for determining the scope of disclosure – until 30th April 2021 (formerly extended by the Act until 30th September 2020).
  • The MDR Regulation has also introduced the following extensions:
    • until 30th April 2021 – the deadline for disclosure of a tax scheme to the Head of the National Tax Administration Office by the beneficiary (MDR-3). This applies to cases where the beneficiary performed any activities under or derived tax benefits from a cross-border tax scheme in the period from 26th June 2018 to 31st March 2021;
    • until 30th April 2021 – the deadline for disclosure of standardized schemes submitted on the MDR-4 form. This applies to cases where the promoter or supporter disclosed a cross-border tax scheme to the beneficiary in the period from 1st July 2020 to 31st March 2021.
  • The MDR Regulation has also extended certain deadlines for disclosure and exchange of information on reportable accounts (CRS) and U.S. reportable accounts (FATCA) until 31st July 2020.

 

Draft VAT Regulation
  • Revocation of Chapters 2 and 3, as well as the Annex to the Regulation of the Minister of Finance of 25th March 2020 on goods and services subject to preferential VAT (“Regulation”);
  • The purpose of the Draft VAT Regulation is to adapt the provisions of the Regulation to a so-called new VAT matrix by way of the amendment of 9th August 2019 (“Amending Act”);
  • The Amending Act comprehensively governs the national preferential VAT regime, therefore it has become necessary to amend the Regulation and repeal duplicate preferential VAT provisions;
  • Goods and services subject to preferential 5% and 8% VAT are governed by the VAT Act and Annexes 3 and 10 thereto (changes introduced by the Amending Act);
  • However, the 0% VAT provisions of the Regulation, applicable since 1st July 2020, will be retained, maintaining, inter alia, 0% VAT for services purchased using non-repayable foreign aid, as well as provisional 0% VAT for certain supplies of goods in connection with the COVID-19 epidemic.

 

* Regulation of the Minister of Finance of 30th June 2020 extending certain deadlines for disclosure of tax schemes and exchange of tax information with other states.
** Draft Regulation of the Minister of Finance of 24th June 2020 amending the Regulation on goods and services subject to preferential VAT, and conditions for application thereof.
Should you have any questions, please do not hesitate to contact us.

Agata Dziwisz
Advocate, Partner, Head of Tax Practice
M: +48 668 886 370
E: a.dziwisz@kochanski.pl