Changes in VAT – more expensive online purchases

The e-commerce VAT package is an initiative to close certain legal loopholes that result in losses in VAT revenues in e-commerce transactions.

Vat e-commerce

After the entry into force of e-commerce VAT, there will be no need to register and submit VAT declarations in the countries where the recipients of the purchased goods live. However, sellers will still be required to charge VAT in the country of the recipient of the goods, however this VAT will be reported in the form of a quarterly return and the One Stop Shop (OSS) system. However, the OSS does not allow businesses to deduct input VAT on expenses incurred in the recipient’s Member State.Sales limits up to which these transactions may be taxed in Poland will be significantly reduced. Currently, the limits are calculated separately for each Member State and range from 35,000 to 100,000 EUR. After the amendment, the limit will be reduced to only 10,000. euro and will cover all Member States in total.

An attempt to reduce the related inconveniences is to be the introduction of a new VAT-OSS procedure. After the changes, it will also cover intra-Community sales of goods and will enable electronic registration in one Member State and collective VAT settlement in one declaration.

Sales platforms as taxpayers

The new regulations will transfer a significant part of the responsibility for correct VAT settlements from basic suppliers to intermediaries handling cross-border B2C transactions, when the entrepreneur sells to private persons using platforms or internet portals. The amendment is to recognize online sales platforms as a taxpayer who buys and supplies goods.


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