Changes to the bad debt relief accounting mechanism (SLIM VAT 2)

Pursuant to the Act on Amendments to the Goods and Services Tax Act as well as the Banking Law Act (SLIM VAT 2), the following changes have been introduced to the mechanism accounting for bad debt relief:

• The deadline for taking advantage of the bad debt relief has been extended, i.e., documents for which less than 3 years have passed since the invoice documenting the debt was issued, counting from the end of the year in which that invoice was issued, will be taken into account in the ZD notification calculated for the period from 01.10.2021.
• It is now possible to include in a ZD notification the payments to documents:
• issued for a customer who is not an active taxpayer
• issued for a customer who is a consumer (natural person not running a business activity)
• issued for a customer who is undergoing restructuring proceedings, bankruptcy or liquidation

Therefore, during automatic creation of ZD notification, the following question is now displayed: “Would you like to include taxpayers who are not active VAT-registered taxpayers?” Selecting the option:

• No (default value) – adds into a ZD notification only payments to the documents issued for a customer who is an active VAT-registered taxpayer
• Yes (default value) – adds into a ZD notification payments irrespective of whether documents were issued for a customer who is an active VAT-registered taxpayer or not

Regardless of the selected option, payments to the documents issued for a customer undergoing liquidation proceedings (parameter In liquidation on customer form) are added to a ZD notification.

Moreover, selecting these buttons: [Add], [Recalculate], [Recalculate All] in a ZD notification displays the question “Would you like to include taxpayers who are not active VAT-registered taxpayers?” Selecting the option:

• No (default value) – displays on the list only payments to the documents issued for a customer who is an active VAT-registered taxpayer
• Yes – displays on the list payments irrespective of whether documents were issued for a customer who is an active VAT-registered taxpayer or not

Regardless of the selected option, payments to the documents issued for a customer undergoing liquidation proceedings are always displayed on the list.