VAT law simplified for SMEs
The Polish Council of Ministers has approved a draft law simplifying VAT obligations for small businesses, aligning with EU regulations. The new law will allow small enterprises from other EU countries to benefit from VAT exemptions when operating in Poland. Currently, foreign companies must register and meet VAT obligations in every EU country where they operate, making it more costly and administratively burdensome than for domestic companies. This change will level the playing field, enabling small Polish businesses to access VAT exemptions across the EU. Additionally, the law introduces new VAT rules for digital services like online event broadcasts, ensuring taxes are directed to the consumer’s country of residence. The new regulations take effect on January 1, 2025.
