The reverse charge mechanism consists in transferring the VAT settlement obligation from the supplier to the buyer. A reverse charge transaction exempts a taxable person supplying goods or service from the obligation to pay VAT. As a consequence, the seller issues a sales invoice without VAT, with the annotation "reverse charge" and prepares a VAT-27 declaration. On the other hand, the entity obliged to charge VAT is the buyer, who at the same time retains the right to deduct input VAT on the purchase.

From January 01, 2017, the limit of cash transactions between enterprises referred to in art. 22 paragraph 1 of the Freedom of Business Activity Act to PLN 15.000,00.

The new rules apply for transactions concluded from January 01, 2017.