(1)

Council Implementing Decision (EU) 2019/310 (2) authorised Poland to introduce a special measure, derogating from Article 226 of Directive 2006/112/EC, that requires suppliers to apply a mandatory split payment mechanism (the ‘special measure’). The mandatory split payment mechanism obliges suppliers (taxable persons) to pay value added tax (VAT) on invoices issued in relation to the supplies of goods and services susceptible to fraud and which are generally covered by a reverse charge mechanism and by joint and several liability in Poland, to a separate and blocked bank account opened in Poland. Council Implementing Decision (EU) 2022/559 (3) extended the application of the special measure until 28 February 2025.

(2)

By letters registered with the Commission on 27 March 2024 and on 1 October 2024, Poland requested an authorisation, in accordance with Article 395(2), first subparagraph, of Directive 2006/112/EC, to continue to apply the special measure until 29 February 2028 (the ‘request’).

(3)

Pursuant to Article 395(2), second subparagraph, of Directive 2006/112/EC, the Commission transmitted the request to the other Member States by letter dated 9 October 2024. By letter dated 10 October 2024, the Commission notified Poland that it had all the information necessary for the appraisal of the request.

(4)

The special measure applies to the goods and services listed in the Annex to Implementing Decision (EU) 2019/310 in accordance with the Polish Classification of Goods and Services. Poland is currently replacing that classification system with the system of the Combined Nomenclature laid down in Council Regulation (EEC) No 2658/87 (4). The list in the Annex to Implementing Decision (EU) 2019/310 should therefore be replaced by a simplified list of categories of goods and services laid down in the Annex to this Decision. Poland has confirmed that the replacement of the list does not extend the scope of the special measure.

(5)

On 13 November 2023, Poland submitted a report pursuant to Article 2, second paragraph, of Implementing Decision (EU) 2019/310, on the overall impact of the extension of the special measure on the level of VAT fraud and on the taxable persons concerned. Poland reported that, since the special measure was extended, its continued application has resulted in the reduction of, in particular, carousel fraud in the sectors that are subject to it, such as steel, scrap, precious metals and fuels. Poland further reported that, in cases where a taxable person is entitled to a VAT refund, Polish authorities have managed to reduce the refund time to below 20 days, in order to enhance the impact on the taxable person’s cash flow.

(6)

Authorisations to apply a special measure are in general granted for a limited period of time to allow the Commission to evaluate whether the special measure is appropriate and effective. The authorisation to apply the special measure should therefore be extended until 29 February 2028. If Poland wishes to extend the special measure beyond 29 February 2028, it should submit a request to the Commission, together with a report on the special measure’s overall impact on the level of VAT fraud and on the taxable persons concerned.

(7)

The special measure will not negatively affect the overall amount of tax revenue collected at the stage of final consumption and will have no adverse impact on the Union’s own resources accruing from VAT.

(8)

Implementing Decision (EU) 2019/310 should therefore be amended accordingly,

(1)

in Article 3, second paragraph, the date ‘28 February 2025’ is replaced by that of ‘29 February 2028’.

(2)

the Annex is replaced by the text appearing in the Annex to this Decision.