Council Implementing Decision (EU) 2022/559 of 5 April 2022 amending Implementing Decision (EU) 2019/310 as regards the authorisation granted to Poland to continue to apply the special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value added tax

Council Implementing Decision (EU) 2022/559 of 5 April 2022 amending Implementing Decision (EU) 2019/310 as regards the authorisation granted to Poland to continue to apply the special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value added tax THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax OJ L 347, 11.12.2006, p. 1. , and in particular Article 395(1) thereof, Having regard to the proposal from the European Commission, Whereas: (1) By letter registered with the Commission on 26 July 2021, Poland requested an authorisation to continue to apply a special measure derogating from Article 226 of Directive 2006/112/EC in order to apply a split payment mechanism (the special measure). The special measure requires the inclusion of a special statement that value added tax (VAT) has to be paid to the blocked VAT account of the supplier on invoices issued in relation to the supplies of goods and services susceptible to fraud and generally covered by a reverse charge mechanism and by joint and several liability in Poland. Poland requested the extension of the special measure for a period of three years, from 1 March 2022 to 28 February 2025. (2) In accordance with Article 395(2), second subparagraph, of Directive 2006/112/EC, the Commission transmitted the request made by Poland to other Member States by letter dated 27 October 2021. By letter dated 28 October 2021, the Commission notified Poland that it had all the information necessary to consider the request. (3) Pursuant to Article 2 of Council Implementing Decision (EU) 2019/310 Council Implementing Decision (EU) 2019/310 of 18 February 2019 authorising Poland to introduce a special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value added tax (OJ L 51, 22.2.2019, p. 19). , Poland submitted a report to the Commission regarding the overall impact of the special measure on the level of VAT fraud and on the taxable persons concerned by letter dated 29 April 2021. (4) Poland has already taken numerous measures to fight fraud. It has, inter alia, introduced the reverse charge mechanism and joint and several liability of the supplier and the customer, the Standard Audit File, tighter rules for the VAT registration and de-registration of taxable persons, and has increased the number of audits. However, Poland nonetheless considers that those measures are insufficient to prevent VAT fraud. (5) Poland introduced the voluntary split payment mechanism on 1 July 2018 and the mandatory split payment mechanism on 1 March 2019. (6) The goods and services that fall within the scope of the special measure are listed in the Annex to Implementing Decision (EU) 2019/310 in accordance with the Polish Classification of Goods and Services of 2008 (PKWiU 2008). The Polish Classification of Goods and Services of 2015 (PKWiU 2015) replaced PKWiU 2008 from 1 July 2020. Under PKWiU 2015, the symbols of the statistical classification and the editorial names of certain goods and services that appear in the Annex to Implementing Decision (EU) 2019/310 have been changed. Although the replacement of PKWiU 2008 with PKWiU 2015 did not result in any change to the scope of goods and services covered by the mandatory split payment mechanism, the Annex should be updated and replaced by the Annex to this Decision for the sake of legal certainty.

(7) The special measure will continue to apply to supplies between taxable persons of goods and services listed in the Annex to Implementing Decision (EU) 2019/310, as updated and replaced by the Annex to this Decision, in business-to-business (B2B) supplies, and will cover only electronic bank transfers. The special measure will continue to apply to all suppliers, including to suppliers not established in Poland. (8) The report submitted by Poland confirmed that the special measure for supplies of goods and services susceptible to fraud brings effective results in the fight against tax fraud. (9) 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 28 February 2025. (10) Given the broad scope of the special measure, Poland should, if it requests a further extension of the authorisation to apply the special measure, submit a report with respect to the functioning and the effectiveness of the special measure on the level of VAT fraud and on the taxable persons regarding, inter alia, the refunds of VAT, the administrative burden and costs for taxable persons. (11) 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. (12) In order to ensure that the objectives pursued by the special measure are achieved, including the uninterrupted application of the special measure, and to provide legal certainty with regard to the tax period, it is appropriate to grant authorisation to extend the special measure with effect from 1 March 2022. As Poland requested authorisation on 26 July 2021 to continue to apply the special measure and has continued to apply the legal regime established under its national law on the basis of Implementing Decision (EU) 2019/310 from 1 March 2022, the legitimate expectations of the persons concerned are duly respected. (13) Implementing Decision (EU) 2019/310 should therefore be amended accordingly, HAS ADOPTED THIS DECISION:

Article 1

Implementing Decision (EU) 2019/310 is amended as follows: (1) in Article 2, the second paragraph is replaced by the following: Where Poland considers that the extension of the measure referred to in Article 1 is necessary, it shall submit a request for an extension to the Commission, together with a report on its overall impact on the level of VAT fraud and on the taxable persons concerned.; (2) in Article 3, second paragraph, the date 28 February 2022 is replaced by the date 28 February 2025; (3) the Annex is replaced by the text appearing in the Annex to this Decision.

Article 2

This Decision shall take effect on the day of its notification.

Article 3

This Decision is addressed to the Republic of Poland. Done at Luxembourg, 5 April 2022.

For the Council The President B. Le Maire

Annex

ANNEX .

Annex

ANNEX LIST OF SUPPLIES OF GOODS AND SERVICES COVERED BY ARTICLE 1

Article 1 shall apply to the following supplies of goods and services described according to the Polish Classification of Goods and Services (PKWiU 2015) ItemPKWiU 2015Name of goods (group of goods) / services (group of services)105.10.10.0Hard coal205.20.10.0Lignite3ex 10.4Animal and vegetable oils and fats – exclusively rape oil419.10.10.0Coke and semi-coke of coal and lignite or of peat; retort carbon519.20.11.0Briquettes, ovoids and similar solid fuels manufactured from coal619.20.12.0Briquettes, ovoids and similar solid fuels manufactured from lignite7ex 20.59.12.0Emulsions for surface sensitisation for use in photography; chemical preparations for use in photography, not elsewhere classified (n.e.c.) – exclusively toners without a print head for printers for automatic data-processing machines8ex 20.59.30.0Typewriter ink, draft ink and other inks – exclusively ink cartridges without a print head for printers for automatic data processing machines9ex 22.21.30.0Plates, sheets, film, foil, strip and plastic strips, non-cellular, not reinforced, laminated or combined with other materials – exclusively stretch foil1024.10.12.0Ferro-alloys1124.10.14.0Pig iron and specular pig iron or steel, in the form of granules or powder1224.10.31.0Flat rolled products of non-alloy steel, hot-rolled, of a width of >= 600 mm1324.10.32.0Flat rolled products of non-alloy steel, hot-rolled, of a width of < 600 mm1424.10.35.0Flat rolled products of other alloy steel, hot-rolled, of a width of >= 600 mm, excluding products of electrical silicon steel1524.10.36.0Flat rolled products of other alloy steel, hot-rolled, of a width of < 600 mm, excluding products of electrical silicon steel1624.10.41.0Flat rolled products of non-alloy steel, cold-rolled, of a width of >= 600 mm1724.10.43.0Flat rolled products of other alloy steel, cold-rolled, of a width of >= 600 mm, excluding products of electrical silicon steel1824.10.51.0Flat rolled products of non-alloy steel, of a width of >= 600 mm, clad, plated or coated1924.10.52.0Flat rolled products of other alloy steel, of a width of >= 600 mm, clad, plated or coated2024.10.61.0Bars and rods, hot rolled, in irregularly wound coils, of non-alloy steel 2124.10.62.0Other bars and rods of steel, not further worked than forged, hot rolled, hot-drawn or extruded, but including those twisted after rolling2224.10.65.0Bars and rods, hot rolled, in irregularly wound coils, of other alloy steel2324.10.66.0Other bars and rods of other alloy steel, not further worked than forged, hot rolled, hot-drawn or extruded, but including those twisted after rolling2424.10.71.0Open sections, not further worked than hot rolled, hot-drawn or extruded, of non-alloy steel2524.10.73.0Open sections, not further worked than hot rolled, hot-drawn or extruded, of other alloy steel2624.20.11.0Line pipe of a kind used for oil or gas pipelines, seamless, of steel2724.20.12.0Casing, tubing and drill pipe, of a kind used in the drilling for oil or gas, seamless, of steel2824.20.13.0Other tubes and pipes, of circular cross section, seamless, of steel2924.20.31.0Line pipe of a kind used for oil or gas pipelines, welded, of an external diameter of <= 406,4 mm, of steel3024.20.33.0Other tubes and pipes, of circular cross section, welded, of an external diameter of <= 406,4 mm, of steel3124.20.34.0Tubes and pipes, of non-circular cross-section, welded, of an external diameter of <= 406,4 mm, of steel3224.20.40.0Tube or pipe fittings of steel, not cast3324.31.10.0Bars, angles, sections and solid profiles of non-alloy steel, cold drawn3424.31.20.0Bars, angles, sections and solid profiles of other alloy steel, cold drawn3524.32.10.0Flat steel products, not further worked than cold rolled, of a width of < 600 mm, uncoated3624.32.20.0Flat rolled steel products, not further worked than cold rolled, of a width of < 600 mm, clad, plated or coated3724.33.11.0Open sections of non-alloy steel, cold formed or cold folded3824.33.20.0Ribbed sheets of non-alloy steel3924.34.11.0Cold drawn wire of non-alloy steel4024.41.10.0Unwrought silver or in semi-manufactured form or in powder form41ex 24.41.20.0Unwrought gold or in semi-manufactured form or in powder form, excluding investment gold within the meaning of Article 121 of the Act on goods and services tax, subject to item 434224.41.30.0Unwrought platinum or in semi-manufactured form or in powder form43irrespective of the PKWiU symbolInvestment gold within the meaning of Article 121 of the Act on goods and services tax44ex 24.41.40.0Base metals or silver, plated with gold, not further worked than in semi-manufactured form – exclusively silver, gold-plated, not further worked than in semi-manufactured form

45ex 24.41.50.0Base metals plated with silver and base metals, silver or gold, plated with platinum, not further worked than in semi-manufactured form – exclusively gold and silver, platinum-plated, not further worked than in semi-manufactured form4624.42.11.0Unwrought aluminium4724.43.11.0Unwrought lead4824.43.12.0Unwrought zinc4924.43.13.0Unwrought tin5024.44.12.0Copper, unrefined; copper anodes for electrolytic refining5124.44.13.0Refined copper and copper alloys, unwrought; master alloys of copper5224.44.21.0Powders and flakes of copper and its alloys5324.44.22.0Flat bars, rods, sections and wire rod, of copper and its alloys5424.44.23.0Wires of copper and its alloys5524.45.11.0Unwrought nickel56ex 24.45.30.0Other non-ferrous metals and products made of the same; cermets; ashes and residues containing metals and metal compounds – exclusively non-precious metal waste and scrap57ex 25.11.23.0Other structures and parts of structures; plates, rods, angles, shapes and the like, of iron, steel or aluminium – exclusively of steel58ex 25.93.13.0Cloth, grills, netting and fencing, of iron, steel or copper wire; expanded metal, of iron, steel or copper – exclusively of steel59ex 26.11.30.0Electronic integrated circuits – exclusively processors6026.20.1Computers and other automatic data processing machines and parts and accessories therefor61ex 26.20.21.0Memory units – exclusively hard drives (HDDs)62ex 26.20.22.0Solid state storage devices – exclusively SSDs63ex 26.30.22.0Cellular phones or other wireless networks – exclusively mobile phones, including smartphones6426.40.20.0Television receivers, whether or not combined with radio-broadcast receivers or sound or video recording or reproduction apparatus65ex 26.40.60.0Video game consoles (such as those used with a television set or a stand-alone screen) and other gaming or game of chance apparatus with electronic display – excluding parts and accessories6626.70.13.0Digital cameras and digital camcorders6727.20.2Electric accumulators and parts thereof6828.11.41.0Parts for spark-ignition internal combustion engines, excluding parts for aircraft engines69ex 28.23.22.0Parts and accessories for office machines – exclusively ink cartridges and print heads for printers for automatic data-processing machines, toners with print head for printers for automatic data processing machines 70ex 29.31.10.0Ignition cable harnesses and other wiring sets of a kind used in vehicles, aircraft or watercraft – exclusively ignition cable harnesses and other wiring sets of a kind used in vehicles7129.31.21.0Sparking plugs; ignition magnetos; magneto-dynamos; magnetic flywheels; distributors; ignition coils7229.31.22.0Starter motors and dual purpose starter-generators; other generators and other equipment for combustion engines7329.31.23.0Electrical signalling equipment, windscreen, defrosters and demisters for motor vehicles7429.31.30.0Parts of other electrical equipment for motor vehicles7529.32.20.0Safety seat belts, airbags and parts and accessories of bodies7629.32.30.0Parts and accessories for motor vehicles n.e.c., excluding motorcycles7730.91.20.0Parts and accessories of motorcycles and side-cars78ex 32.12.13.0Jewellery and other jewellery as well as parts thereof, made of precious metal or metal plated with precious metal – exclusively parts of jewellery and parts of other gold, silver and platinum jewellery, i.e. unfinished or incomplete jewellery and distinct parts of jewellery, including covered or plated with precious metal7938.11.49.0Used vehicles, computers, televisions and other devices intended for scrapping8038.11.51.0Glass waste8138.11.52.0Paper and paperboard waste8238.11.54.0Other rubber waste8338.11.55.0Plastic waste8438.11.58.0Metal-containing waste other than hazardous waste8538.12.26.0Hazardous metal waste8638.12.27Waste and defective electric cells and accumulators; spent galvanic cells and batteries and electric accumulators8738.32.2Metal secondary raw materials8838.32.31.0Secondary raw material of glass8938.32.32.0Secondary raw material of paper and paperboard9038.32.33.0Secondary raw material of plastic9138.32.34.0Secondary raw material of rubber92Motor spirit, diesel oil, fuel gas – within the meaning of the provisions on excise duty93Heating oil and lubricating oil – within the meaning of the provisions on excise duty94ex 58.29.11.0Operating system software packages – exclusively SSD95ex 58.29.29.0Other software packages – exclusively SSDs96ex 59.11.23.0Other videos and video recordings on disks, magnetic tapes and similar media – exclusively SSDs

97irrespective of the PKWiU symbolGHG emission allowance transfer services referred to in the Act of 12 June 2015 on Greenhouse Gas Emission Trading Scheme (Official Journal of 2021 item 332)9841.00.3Construction work on residential buildings (works on the construction of new buildings, reconstruction or renovation of existing buildings)9941.00.4Construction work on non-residential buildings (works on the construction of new buildings, reconstruction or renovation of existing buildings)10042.11.20.0General construction works involving the construction of motorways, roads, streets and other roads for vehicles and pedestrians and the construction of runways10142.12.20.0General construction works involving the construction of railways and subways10242.13.20.0General construction works involving the construction of bridges and tunnels10342.21.21.0General construction works involving the construction of transmission pipelines10442.21.22.0General construction works involving the construction of distribution networks, including auxiliary works10542.21.23.0General construction works involving the construction of irrigation systems (sewers), bus and water lines, facilities for water treatment and sewage treatment and pump stations10642.21.24.0Works involving the drilling of wells and water intakes and installation of septic tanks10742.22.21.0General construction works involving the construction of telecommunications and power transmission lines10842.22.22.0General construction works involving the construction of telecommunications and power distribution lines10942.22.23.0General construction works involving the construction of power plants11042.91.20.0General construction works involving the construction of wharves, ports, dams, locks and related hydro-technical facilities11142.99.21.0General construction works involving the construction of production and mining facilities11242.99.22.0General construction works involving the construction of stadiums and sports fields11342.99.29.0General construction works involving the construction of other civil engineering structures, n.e.c.11443.11.10.0Works involving demolition of buildings11543.12.11.0Works involving the preparation of the site for construction, excluding earthworks11643.12.12.0Earthworks: digging, ditch digging and earth moving jobs11743.13.10.0Works involving the excavation and geological-engineering drilling11843.21.10.1Works involving the execution of electrical safety installations11943.21.10.2Works involving the implementation of other electrical installations12043.22.11.0Works involving the execution of plumbing and drainage works12143.22.12.0Works involving the execution of heating, ventilation and air conditioning systems 12243.22.20.0Works involving the execution of gas installations12343.29.11.0Insulation work12443.29.12.0Installation of fencing12543.29.19.0Other installation works n.e.c.12643.31.10.0Plastering works12743.32.10.0Installation work for carpentry12843.33.10.0Works involving the laying the floor and facing the walls12943.33.21.0Works involving the laying of terrazzo, marble, granite or slate on floors and walls13043.33.29.0Other works involving the laying of floors and walls (including wallpapering), n.e.c.13143.34.10.0Painting works13243.34.20.0Glass-making works13343.39.11.0Works involving the decoration13443.39.19.0Works involving the execution of other finishing works, n.e.c.13543.91.11.0Works involving the construction of roof structures13643.91.19.0Works involving other roofing work13743.99.10.0Works involving the installation of damp-proof and waterproof insulation13843.99.20.0Works involving the assembly and dismantling of scaffolding13943.99.30.0Works involving the construction of foundations, including pile driving14043.99.40.0Concrete works14143.99.50.0Works involving erection of steel structures14243.99.60.0Works involving the erection of brick and stone structures14343.99.70.0Works involving the assembly and erection of prefabricated structures14443.99.90.0Works involving the performance of other specialized works, n.e.c.14545.31.1Trade services of motor vehicle parts and accessories, excluding motorcycles14645.32.1Specialised store retail trade services of motor vehicle parts and accessories, excluding motorcycles14745.32.2Other retail trade services of parts and accessories of motor vehicles, excluding motorcycles148ex 45.40.10.0Wholesale trade services of motorcycles and related parts and accessories – exclusively sale of parts and accessories for motorcycles149ex 45.40.20.0Specialised store retail trade services of motorcycles and related parts and accessories – exclusively sale of parts and accessories for motorcycles150ex 45.40.30.0Other retail trade services of motorcycles and related parts and accessories – exclusively retail sale of parts and accessories for motorcycles