Poland Extends Special Value-Added Tax Rules for Energy Trading

Poland will continue using a reverse charge mechanism for exchange-traded supplies of gas, electricity and emission allowances until the end of 2026.

A bill to extend the mechanism passed the Polish Senate in a 83-2 vote Wednesday, following a Jan. 24 approval by the parliament’s lower house. The bill now heads to the president for signature.

The measure, introduced in 2023, was set to expire Feb. 28.

• The reverse charge mechanism shifts the obligation to settle value-added tax from the seller to the buyer, thus guarding against VAT fraud while reducing transaction costs and simplifying tax ...