The draft act amending the VAT Act and certain other acts is an additional element of tightening the tax system related to the possibility of applying zero excise tax rate to products classified to CN 3403 without any additional formalities. In turn, in the case of products classified to CN 2710, which slightly differ in composition and purpose from products classified to CN 3403, the regulations provide for additional formal requirements.
As a result, entities which are handling products classified to CN 3403 will be obliged, after the changes have been made, to:
- Registration for excise duty purposes or submission of an updating application;
- Settlement of excise duty in the case of intra-Community acquisitions or imports, which in certain cases involves lodging of securities, submission of notifications of intended acquisitions, returns and record keeping;
- Fulfilment of additional formalities related to domestic acquisition in case the buyer decides to apply the excise duty exemption (within the scope of such transactions the same exemption mechanism will certainly be applied as in the case of lubricating oils).
These amendments are to enter into force on 1 November 2019.
What does it mean?
These amendments are a revolution for those who purchase this type of product both from abroad and domestically. Therefore, it is already time to consider how to prepare for the forthcoming changes so as to complete all possible formalities related to taxation of lubricating preparations.
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