Employers of Poland support changes regarding exemptions from the obligation to evidence transactions using cash registers, which could restrict the grey market. However, the two-month preparation period is a cause for concern – the Organization is of the opinion that it should last at least half a year.
The Ministry of Finance has published a draft of a regulation on exemptions from the obligation to use cash registers. Due to the fact that the exemptions currently in force, introduced by a regulation issued by the Minister of Finance on November 29th 2012, will expire on January 1st 2015, a decision has been made to prolong the exemptions for two years.
According to an authorization included in article 111, paragraph 8 of the VAT Act from March 11th 2004, the Minister relevant to public finance issues will exempt some groups of taxpayers, as well as some activities, from the obligation to evidence turnover and due tax on cash registers for a fixed term. Suggested changes apply to ca. 70 000 entities, which provide services to natural persons who do not conduct business activity and lump-sum farmers.
The Ministry of Finance suggests prolonging the exemptions until 2015-2016 and maintaining the criterion of 20 000 PLN in turnover for entities continuing and starting their activity,
However, the catalog of subjective exemptions and exempted activities has not remained unchanged. With regards to subjective exemptions, the draft plans to remove the exemption dependent on the quantity of services provided and the number of recipients of these services, as well as the exemption included in position 43, pertaining to scheduled passenger transport.
With regards to the catalogue of activities, the Ministry of Finance suggests removing exemptions for a.o. car, motorcycle and moped repair; tire or wheel change; technical review of automobiles; medical and dentistry services; as well as legal services tax advisory; gastronomy; barber and cosmetic services. After the introduction of proposed changes, no exemption titles will apply to the aforementioned activities.
The draft includes the introduction of a new exemption title which will involve the supply of goods and services treated as fixed assets and immaterial and legal values subject to amortization on the basis of income tax regulations. The taxpayer would qualify for exemption, provided an invoice for each such activity would be presented.
The legislator motivates these changes with the obligation to tighten the tax system and prevent undervaluation of turnover and tax evasion. Employers of Poland fully support the fight against the grey market and tax abuses, but – knowing the needs and expectations of law-abiding entrepreneurs – representatives of the Organization proposes prolonging the adaption period. The draft in its current form gives entrepreneurs only two months to adapt to the obligation to evidence their services with cash registers. Such a short term might cause excessive burdens for entrepreneurs. Employers of Poland suggest prolonging it to at least six months. It would also be advisable to apply the same adaptation period to entities, which start providing goods or services to natural persons who do not conduct business activity and lump-sum farmers. Such a solution would guarantee a more entrepreneur-friendly transition to the new evidence system.
The full opinion of Employers of Poland on above mentioned changes is available on the website of the Tax Committee of Employers of Poland.
The Tax Committee of Employers of Poland