Technological development has never been as fast as it is in the history of mankind. There is no doubt that humanity is on the verge of change, and it is coming at a speed that has not been reflected anywhere else in the past. The world is changing before our eyes, and solutions such as artificial intelligence (AI) are driving them. And what will that world look like?
The European Union, as an organization that is a pioneer in the implementation of good practices, tries to keep pace with the changes taking place, which must be followed by legal solutions as well as … taxes. Taxes, due to their intrinsic features, have the ability to shape the reality that surrounds us, as well as to accelerate or delay the changes taking place in communities. These circumstances make taxes one of their constituent elements.
Ulve invites you to review the most important legal solutions implemented in the European Union in the field of taxes and legal solutions that can be confidently called #TaxesofTomorrow. And some of them are already #TaxesofToday.
Today’s article is a short preview of the topics we will be covering in our blog in the coming weeks:
Carbon Border Tax (CBAM)
In principle, the tax is already in force. It is intended to be a mechanism to reduce harmful emissions of greenhouse gases (e.g. carbon dioxide). It will consist in restricting imports of goods into the European Union from countries that do not apply the reduction measures proposed by the EU by imposing additional financial costs on importers of certain types of goods.
Taxpayers importing goods specified in the regulation will be obliged to report accordingly, and in the future – to pay the tax. Polish taxpayers will be required to submit the first reporting by the end of January 2024 for the fourth quarter of 2023.
You can read more about the carbon border tax here:
Plastic Tax (SUP)
Another (de facto) tax already in force. This solution is to reduce the consumption of plastic products in the European Union. Recycling fees and consumer fees have been introduced, as well as a number of other obligations, such as the need for appropriate product labelling, financing of educational campaigns, submission of annual reports, etc.
These regulations will enter into force from 2024.
More about the plastic tax here:
Minimum Tax
The minimum income tax was introduced into Polish legislation along with the reform referred to as the Polish Deal. However, the entry into force of these regulations has been postponed to 2024.
The minimum income tax is to apply to taxpayers who in a given year reported a loss or income not exceeding 2% of the value of revenues. Of course, these regulations contain a number of exclusions and deductions. However, they will require the entities potentially covered by it to undertake a review of possible burdens.
However, let us not confuse the “Polish” minimum income tax with the proposal formulated at the OECD forum and currently being implemented, among others, with the participation of the European Union (the minimum tax).
The introduction of this minimum tax is in line with the concept regulated under the BEPS 2.0 project, which provides for the need to implement the so-called global minimum tax (Pillar 2) in European jurisdictions.
Non-financial reporting (ESG)
In addition to the tax regulations themselves, it is worth mentioning the so-called non-financial reporting, which is to contribute to the achievement of the objectives of the European Green Deal, the recipients of which are primarily investors, non-governmental organizations, social partners and other interested parties.
The introduced reporting obligations are to apply to a number of non-financial information in the areas of Environmental, Social and Corporate Governance.
More about ESG here:
Structured invoices
Structured invoices, or in other words, KSeF. An obligatory e-invoicing solution for entrepreneurs, which is part of the European Union’s initiative called “VAT in digital age”, and at the same time an area where Poland is a real tax leader.
Nevertheless, the EU authorities want to go even further than the Polish legislation, i.e. it proposes the implementation of a number of far-reaching requirements in the field of invoicing, on the one hand, but also digital reporting, which in fact is to boil down to reporting on economic activities undertaken in real time, which should be reflected in online invoicing.
