The pathologies of ‘tightening instruments’ used withrespect to value-added tax, as exemplified by the nationalreverse charge

<ns3:p>The article discusses the changes introduced in Poland’s value-added tax (VAT) between 2011 and 2020, particularlythe national reverse charge, whose declared purpose was to ‘tighten’ the tax, i.e. eliminate or close theloopholes in the VAT system, inhibit the mass-scale tax evasion and inhibit undue refunds of VAT. The authorargues that restricting the pathological effects of the tax concerned has only proved successful with but a part ofthe tightening instruments imposed in the said period whilst most of the mechanisms and/or procedures wereapparent actions. Added to which, the national reverse charge as introduced and extended in 2011–2019 has exacerbatedthe shortcomings of VAT, thus affecting its fiscal efficiency. The instrument in question has actuallyresulted in an elimination of the taxation of the actions covered by it and in increased refund amounts. The repealof national reverse charge in 2019 has been one of the major operations carried out in view of tightening the VAT.</ns3:p>