The regulations enabling the creation of VAT groups were initially to enter into force at the beginning of July this year. However, that date has been postponed. Therefore, taxpayers will be able to use this solution from January 1, 2023.
The purpose of the VAT group is to ensure the possibility of joint tax settlement between related entities. The key advantage will be only one collective JPK_VAT file instead of separate files submitted by individual units. This means no intra-group invoicing and more efficient management of input tax and cash flow.
Another advantage is the lack of an obligation to use the split payment mechanism for entities from the VAT Group and no need to verify the contractor in the list of taxpayers (the so-called white list of taxpayers).
Who can create a VAT group?
A VAT group will be able to be created by entities that have financial, economic and organizational ties with each other:
- financially – one of the entities that forms a VAT group has a direct share of more than 50% in the share capital, or more than 50% of the voting rights in the controlling, constituting or managing bodies, or more than 50% of the right to share in the profit, of each of the other members of the group,
- economically – the subject matter of the VAT group members’ main activities is of the same nature, or the types of activities that are carried out by the VAT group members are complementary and interdependent, or a VAT group member carries out activities from which the other VAT group members benefit wholly or substantially,
- organizationally – the members of the VAT group legally or in fact, directly or indirectly, are under common management or organize their activities wholly or partly in concert, having their registered office in the territory of Poland or foreign entities with branches in Poland, conducting activities in the territory of Poland.
It should be mentioned that one entity can be a member of only one VAT group. Moreover, affiliated companies do not have to belong to a tax capital group in accordance with the provisions of corporate income tax. In order to form a VAT group, it is necessary to conclude a written agreement on its formation, for a period of not less than 3 years.
