From the observation of the current market economy model in Poland and the reading of the regulations governing the basis of economic activity, several traits of entrepreneurs can be derived. The following article will focus on these characteristics.
The ministry of finance has published the information stating that micro-entrepreneurs will be able to count on a faster refund of goods and services tax (VAT). Micro-entrepreneurs may get their refunds even within 15 days. However, in order for this to happen, it is necessary to verify the correctness of the VAT refund within this time limit.
In 2019, the Ministry of Finance may withdraw from traditional VAT declarations. All within the next steps of implementing innovative solutions in the department and its subordinate offices. Much depends on how the functioning of a Single Control File will be assessed. Hence the changes will only come into force in 2019, and it is highly likely that even later.
The finance department intends to publish the information on how high is the income tax paid to the tax authorities by the largest Polish entrepreneurs. In the meantime, in the opinion of entrepreneurs, publishing this information might be misleading by suggesting that entrepreneurs who do not use tax optimization mechanisms and have a low income, or even a loss, avoid paying taxes.
The family, work and social policy department has introduced a new project that implements the 500+ program for retirees. As of March 2018 the pensioners who receive monthly lower pensions will receive extra 500 zlotys. At the moment the minimal pension is 1000 zlotys.
If the employer has delayed the employee’s holiday, they are obliged to reimburse the employee for all costs directly related to the postponement. What is important, however, is that this does not generate revenue on the part of the employee – the employer will count this sum among their tax expenses.
Over the past few years in Poland and elsewhere in the European Union, the VAT mechanisms have been widely used to obtain benefits, primarily assets, in an illegal manner. This problem is largely connected with the so-called “tax carousels”, used for VAT frauds against the State Treasury in the amounts of millions of zlotys.
It is certain that employer is not entitled to ask their employees for information about the location of their stay during their annual leave. The employer may, however, provide in the inter-company regulations a requirement for employees with important functions in the enterprise, to indicate their telephone number for contact during their vacation or to receive calls coming from the employer to the employee’s business phone during their holiday leave.
According to specialists, taxpayers using the split payment mechanism should be more protected. Otherwise, the taxpayers will be in danger of refusal of their right to deduct input tax. Such impairment of entrepreneur’s freedom to dispose of the amount of VAT collected from the buyer will translate into further problems with financial liquidity. This is particularly true for small businesses.
On 1 June this year the provisions of the Act amending the Administrative Procedure Code came into force. The changes concern, among others, the rules for filing complaints against individual tax rulings.