The creation of a VAT group, as provided for in the Polish Deal, is aimed at joint settlements for VAT purposes for companies related financially, economically and organizationally. The VAT group is voluntary and the taxpayer does not have to use such a solution.
Currently, taxpayers who want to create a VAT Group do not need to have the status of a Tax Capital Group for the purposes of CIT, which was previously the basis in the proposals defining the nature of the operation of the VAT Group. This solution provides wider access for interested entities. Polish taxpayers who will try to create a Group must have joint financial ties, i.e. at least one of the entities in the group must have a direct share in the share capital or part of the share capital of other entities in excess of 50%. Economic links refer to the interdependence of the subject of activity performed by all members. As for organizational links, VAT taxpayers should be under one collective management in a legal, factual or direct form. Another possibility is to agree on joint actions or partially joint actions. The above relationships are a necessary element to conclude a VAT group and must last throughout the entire period of establishing the group. The group may not operate for less than 3 years. The deadline may be extended. Additionally, taxpayers must be established in Poland. In the case of entities conducting business activity through a branch located in the country, they will also be able to create a group.
A taxpayer who already forms a group with other entities cannot be part of another VAT group. The VAT group must operate as an independent group and not be subject to another VAT group. At the time of its creation, it is not possible to change its entities. By design, each of the taxpayers in the group calculates the proportion of VAT on their own.
To create a VAT group, taxpayers must sign a contract for the VAT Group, then select a person representing the Group and complete a registration application together with the contract to the tax office, to which the representative of the Group is responsible.
The benefits of the idea of a VAT group include: reducing formalities by limiting the required JPK_VAT files, resignation from split payments for intra-group turnover, delivery of goods and provision of services by entities in the group will not be subject to taxation. The idea of the Polish Deal, however, carries a huge responsibility, which is the same (joint and several) for all members of the VAT group (both during the period of being a taxpayer by the VAT Group and after such a Group loses this status).