Poland's Ministry of Finance has published draft legislation to amend the VAT Act, implementing EU Directive 2025/516 as part of the VAT in the Digital Age (ViDA) package, with most changes taking effect from 1 January 2027.
Development
The proposed amendments address eight key issues identified following the 2021 e-commerce VAT reforms. These include clarifying the scope of supplies facilitated by electronic interfaces, ensuring that deliveries to VAT-exempt entities within the EU are covered by the deemed supplier regime where applicable.
The legislation refines calculation of the EUR 10,000 threshold (PLN 42,000 in Poland) for determining the place of taxation for intra-EU distance sales and telecommunications, broadcasting and electronic services. Under the new rules, only distance sales dispatched from the member state where the taxpayer is established count toward the threshold, excluding sales from warehouses in other member states that do not constitute a fixed establishment.
The draft introduces a rule that taxpayers registered for Union OSS are deemed to have chosen to tax telecommunications, broadcasting and electronic services and intra-EU distance sales in the member state of consumption, even when below the EUR 10,000 threshold. This eliminates confusion about the relationship between place of supply rules and Union OSS procedures.
Additional changes include eliminating the requirement to provide website information when registering for non-Union OSS and Import OSS (IOSS), extending Union OSS to cover B2C supplies of natural gas, electricity, heating and cooling energy by treating them as intra-EU distance sales, and excluding small taxpayers with subjective VAT exemptions from using IOSS for distance sales of imported goods valued up to EUR 150.
The legislation also establishes clear rules for when VAT liability arises for supplies reported through Union and non-Union OSS procedures. From 1 July 2028, the call-off stock procedure will be abolished and replaced by a simplified Transfer of Own Goods (TOOG) OSS procedure for cross-border movement of own goods.
Context
These amendments represent Poland's implementation of the second phase of EU VAT digitalization reforms, building on the 2021 e-commerce package that introduced significant changes to cross-border VAT rules. The ViDA initiative reflects the European Commission's broader strategy to modernize VAT systems for the digital economy, with Poland required to transpose Article 2 provisions by 30 December 2026 and Article 4 provisions by 30 June 2029.
