Temporary introduction of the reverse charge

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Poland

05.02.23

Temporary introduction of the reverse charge

Due to the introduction of the split payment mechanism in 2019, Poland has largely not made as much use of the reverse charge to the same extent as its European counterparts. However, Poland is now reversing this trend. On a temporary basis, the reverse charge will be permitted on the following domestic transactions:

Supplies of gas;
Supplies of electricity;
Provision of services for the transfer of greenhouse gas emissions allowances

The changes are complex. Tungsten Network would recommend consulting a tax advisor for further information in respect of these changes if required. The reverse charge is viewed as an effective measure to combat VAT fraud by essentially placing the responsibility to pay VAT on the buyer rather than the supplier. The VAT in the Digital Age (ViDA) proposal also has proposed some intriguing changes in respect of the reverse charge. You can read more about this, and the proposal in general, here.