Since 1st January, 2017, a majority of construction works (classified on the basis of PKWiU2008 (Polish Standard Classification of Economic Activities) used for tax purposes, in groupings 41-43) will be covered by reverse charge mechanism. The new catalogue of services covered by the reverse charge mechanism will be given in Annex 14 to the VAT Act.
The application of the reverse charge mechanism to new services covered by this mechanism will depend on an additional condition, i.e. the provider of these services will have to act as a subcontractor. In the case when the taxpayer is the main contractor of these services, the reverse charge mechanism will not be applied.
