Being VAT compliant in Poland: a challenging journey - Deloitte, 30 January 2020
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Being VAT compliant in Poland: a challenging journey Deloitte, 30 January 2020
Agenda
VAT White list of VDEK reporting MDR reporting (DAC-6
environment in taypayers „equivalent”) and
Poland obligatory split
payment mechanism
Being VAT compliant in Poland: a challenging journey 2What is current VAT environment in Poland?
Evolution of the VAT environment in Poland
Main areas
local VAT reverse-charge valid for sensitive goods and services subject to
frauds (steel, scrap, electronics, etc.);
Various legal solutions to battle VAT joint VAT liability in case local reverse-charge could not apply
frauds 2016 - SAF-T filings (VAT, bank statements, general accounts etc.)
2016 – VAT anti-abuse clause
May 2019 - On-line cash registers
Most of tax returns filed electronically
E-filings October 2018 - financial statement for Polish GAP in SAF-T form
April 2020 – VAT returns will be replaced by detailed VAT SAF-T file
Administration developed extensive databases constantly fuelled
by the taxpayers containing data from banking transactions,
Extensive databases of tax administration SAF-T files, tax returns, DAC-6 reporting, etc.
On demand SAF-T (invoices, warehouse, GL, banks)
White list – register of active VAT payers – available on-line
Period 2017 - 2020 - decrease of tax inspections and controls, but
increasing amount of collected for tax arrears
Increase of efficiency of tax authorities E-controls based on data analytics of SAF-T, banking data (STIR)
Specialized teams, e.g. for advanced TP proceedings.
Being VAT compliant in Poland: a challenging journey 4What are main white list difficulties?
What is the white list of taxpayers?
An electronic database Purpose Since when does it exist?
The white list is a list of VAT The white list is an important The relevant act of law came
payers maintained by the tool that allows taxpayers to into force on
Head of the National Fiscal verify information concerning 1 September 2019.
Administration on the Public their counterparties as at a Provisions concerning
Information Bulletin website of given date. sanctions for failure to fulfil the
the Ministry of Finance. obligations related to the white
list come into force on 1
January 2020.
Being VAT compliant in Poland: a challenging journey 6What is the white list of taxpayers?
Data featured in the white list
Information concerning the taxpayer
featured in the list includes:
The number used to identify The numbers of the taxpayer’s
the taxpayer for tax purposes settlement accounts
specified in the request for
The list is updated on Full name of the taxpayer taxpayer identification number
or update request, together
working days once The address of the taxpayer’s with personal accounts in credit
every 24 hours place of business or the unions
address of their principal place
of business Dates – of the taxpayer’s VAT
The list is published in registration, deletion or re-
The address of the entry in and from the VAT
the Public Information registered office for system
Bulletin taxpayers who are not natural
persons The counterparty’s Statistical
ID Number (REGON) or
National Court Register
(KRS) number
Being VAT compliant in Poland: a challenging journey 7What sanctions may we face?
Negative tax consequences starting from 1 January 2020
Payments based on VAT invoices related CIT / PIT Adequate procedures for
to business activity carried out for the No right to recognise the verifying the
benefit of another entrepreneur (VAT expense as tax-deductible cost counterparties’ data,
payer), where the one-off value of the and IT tools supporting
transaction exceeds VAT them, will have to be
PLN 15,000 Joint and several responsibility
for VAT amounts related to the
implemented!
(irrespective of the number of payments), transaction
made to accounts not specified in the
white list as at the date of the transfer EXCEPTION:
order being placed. Transfers to the accounts other
than those specified in the white
list, provided that the tax office
competent for the invoice issuer
is notified within three days of
the transfer order being placed
Being VAT compliant in Poland: a challenging journey 8What specific cases are there?
Foreign entities registered for VAT purposes in Poland &
foreign bank accounts
Polish bank accounts of foreign entities registered for VAT
purposes in Poland – to be included on White list.
Possible solutions (final option dependant on business
Potential problems with non-Polish bank accounts of VAT
circumstances):
registered foreign entities – they are not subject to White list
reporting; when the buyer pays to such account - the risks of
Setting up Polish bank account by foreign entity
sanctions / additional obligations.
or
Filling of the notification(s) by the purchaser (Polish MF
„Non-Polish” transactions of foreign entities registered for
confirmed that one notification per one bank account is
VAT purposes in Poland – currently clear situation – payments
sufficient)
for such are not covered by White list obligations.
Accounts opened in Polish branches of foreign banks
Accounts in Polish branches of foreign banks – shall be subject to
the standard White list reporting
Being VAT compliant in Poland: a challenging journey 9What specific cases are there? Netting / offsetting • Netting equal amounts (with no transfer) should generally not be subject to any restrictions related to the white list, as no transfers are involved. • Setting off different amounts with equalising transfers leads to the question what measures should be taken if the account is not featured in the white list. What data should be notified to the Tax Office? • Netting with foreign counterparties (who hold a Polish VAT number) Virtual accounts • As regards the obligation to notify the Tax Office, virtual The Ministry of Finance is working on accounts do not constitute settlement accounts, and therefore there the use of the so-called “masks” for is no obligation to notify the Tax Office. The white list contains verifying virtual accounts information that accounts may be virtual. • Payments to virtual accounts will have to be treated just like payments to settlement accounts. Being VAT compliant in Poland: a challenging journey 10
What specific cases are there?
Accounts of natural Factoring Calculating PLN 15.000 The relationship between the
persons who carry out Traditional factoring – Which entity limit white list and the split payment
business activities maintains debt? (to be taken into Do we take into account the mechanism
If they possess individual account - factor’s account specified in transaction account (and Split payments make parties release
accounts, they may not the VAT invoice shall not be linked to how the transaction shall be from the joint and several
featured in the white list, the issuer’s Tax ID Number (NIP), understood) or the invoice responsibility for VAT, but do not
notification obligation. even if such an account is featured in value? ensure tax deductibility of expenses
the white list) in respect of CIT/PIT
Reverse factoring – confirming
payments on the white list and
collecting documentation that confirms
queries. The payments covered by mandatory
split payments, even if made to the
Foreign factors – Are they registered accounts featured in the white list,
for VAT purposes? Do they have a PL still require split payment (payment
account? to VAT account); failure to
Which Tax Office is the one to be implement the split payment
notified? mechanism involves 30% sanction.
Being VAT compliant in Poland: a challenging journey 11What we can check on WhiteList?
An opportunity to submit queries in different ways:
SEARCH for SEARCH for SEARCH for
NIP ACCOUNT NUMBER NIP and ACCOUNT
Results: NUMBER
counterparty’s data, i.e. Results: The most valuable results,
their VAT status (current full scope of data about the showing whether a given
and past), bank accounts, counterparty, with a summary bank account is assigned to a
address, National Court indication of whether the given specific counterparty
Register (KRS) Number, account is featured in the white
Business Statistical Number list
(REGON), etc.
Necessity of collecting unique polling number
assigned by the Ministry of Finance, which
constitutes evidence that the given white list
query was submitted as at a given date.
Being VAT compliant in Poland: a challenging journey 12When is a good start to prepare for VDEK reporting ?
New SAF-T files for Polish VAT reporting
General information
The Polish law introduced new form of VAT
reporting : JPK_V7M file (for taxpayers submitting
quarterly VAT returns: JPK_V7K file) - at the earlier
stages of legislative works called “JPK_VDEK”.
The file is supposed to replace the existing JPK_VAT
files and local VAT return.
Important changes comparing to current JPK file:
Penalties amounting to 500 PLN apply for each
error identified in submitted JPK files – if the mistake - extensive number of special product codes - not always clearly
makes impossible to verify the correctness of covering all transactions,
transaction. Fines are not levied if error is
corrected within 14 days from the tax authorities - codes identifying certain types of transactions, e.g. triangular
notification. transactions, the transactions to which obligatory split payment is
applicable, transfers of single purpose vouchers (SPVs), distance
sales, certain customs procedures or transactions carried out with a
related party.
The Ministry of Finance (MF) published
Regulation on scope of data to be presented by the - codes identifying certain document types (e.g. collective
taxpayers in the new JPK_VDEK. Also draft of xml documents concerning the sale documented with cash register or
scheme is available on webpage of MF. internal documents).
- Obligation to include the invoice receipt date in the purchase
register.
Being VAT compliant in Poland: a challenging journey 14New SAF-T files for Polish VAT reporting
General information
New VAT SAF-T– JPK_V7M (VDEK) SAF-T VAT
[Since] 1 April 2020 for large entrepreneurs, others
since 1 July 2020. Goods & services
codes
[What would change] One VAT SAF-T instead of VAT VAT return
return, current JPK_VAT and attachments to VAT return.
Code of procedures
[What is in addition]
• Lack of additional attachments
JPK_VDEK
• New reporting for particular goods and services sold
• Broader scope of data delivered
• Severe sanctions for non-compliance Attachments to
VAT return …plus additional requirements re doc type
etc.
Being VAT compliant in Poland: a challenging journey 15New SAF-T files for Polish VAT reporting
New reported data: commodity group codes and document types
Commodity Group Code Document Type Code (for sale)
Value Description
Value Description
01 Alcoholic beverages
02 Liquid and solid fuels / Mining products Internal collective document covering sales recorded
RO
on cash registers
03 Fuel oils and lubricating oils with some exceptions
WEW Internal document
04 Tobacco products
Invoice issued under the rules prescribed in Art. 106b
05 Wastes
FP para. 3 of the VAT Act (invoice issued based on the
06 Electronic devices as well as parts and materials to them cash register's receipt)
Document Type Code (for purchase)
07 Car vehicles and car parts
08 Noble and non-noble metals Value Description
09 Medicines and medical products VAT-RR invoice, as referred in Art. 116 of the VAT Act
VAT_RR
(lump sum farmer’s invoice)
10 Buildings, structures and ground
WEW Internal document
11 Greenhouse gas emission allowance transfer services
Intangible services (e.g. management, consulting, marketing, Invoice issued by VAT taxpayer who has chosen the
12 MK
legal) cash method described in Art. 21 of the Act
13 Transport services and storage management
Being VAT compliant in Poland: a challenging journey 16New SAF-T files for Polish VAT reporting
New reported data: New markers in VAT evidence
Markers in VAT evidence – sale transactions
Value Description
SW Distance sales to non VAT taxpayers (B2C), made from the territory of Poland
EE Telecommunications, broadcasting and electronic services to non VAT taxpayers (B2C)
TP Sale to related entities (in person or by capital) - within the meaning of Article 32 of the VAT Act
TT_WNT Intra-Community acquisition of goods by intermediate within simplified triangular procedure
TT_D Intra-Community supply of goods by intermediate within simplified triangular procedure
MR_T Provision of tourism services, settled under VAT margin procedure
MR_UZ Supply of second-hand goods, works of art, collectors' items and antiques, settled under VAT margin procedure
I_42 Intra-Community supply of goods after importation of these goods under customs procedure 42 (import)
I_63 Intra-Community supply of goods after importation of these goods under customs procedure 63 (import)
B_SPV Transfer of a single-purpose voucher made by a VAT taxpayer acting on his own behalf
Supply of goods or provision of services, covered by the single-purpose voucher, to VAT taxpayer who issued the
B_SPV Dostawa
voucher
B_MPV Prowizja Provision of intermediary services and other services related to the transfer of multi-purpose vouchers
MPP Supply of goods or services to which obligatory split payment mechanism is applicable
Markers in VAT evidence – purchase transactions
Value Description
MPP Acquisition of goods or services to which obligatory split payment mechanism is applicable
Import of goods, including import of goods settled by means of simplified procedure (input and output VAT amount
IMP
is included in VAT return) in accordance with Art. 33a of the Act
Being VAT compliant in Poland: a challenging journey 17What are requirements regarding Polish obligatory split payment and is MDR reporting equivalent of DAC-6?
Mandatory Split Payment
Main rules
Mandatory Split Payment
[Purpose] More effective mechanism than local reverse-charge and joint VAT liability. Obtained EU Council
Decision allowing this mechanism until 28 February 2022.
[Dates] Since 1 November 2019.
[Scope] Payments:
• One-off gross value, regardless how many payments are envisaged, exceeds 15 000 PLN
• Transaction involves goods and services listed in exhibit 15 to VAT Act (in general sensitive goods subject
to potential VAT frauds).
[Additional remarks]
For non-resident entities it is mandatory to set up Polish bank account if perform supply listed in Exhibit 15
Collective payments (not exceeded 1 month) are allowed if contain all invoices in the given month.
Extensive explanations issued by Ministry of Finance in December 2019
Being VAT compliant in Poland: a challenging journey 19MDR reporting (Polish DAC-6 „equivalent”)
Main rules
Mandatory Disclosure Rules (MDR) – Polish DAC-6 „equivalent”?
[Since when] Since 1 January 2019 r. However, may cover events since after 25 June 2018 (cross-
border) and after 1 November 2018 (domestic).
Mandatory disclosure to Polish tax administration of transactions/events that meet the hallmarks and
criteria of a so-called „tax-planning scheme” as listed in the Polish Tax Ordinance
[The rules] Scope of Polish regulations is much broader than envisaged in EU DAC-6 Directive
from which the obligation initiates (e.g. there are 24 hallmarks, instead on 15 hallmarks mentioned in
DAC-6) and covers also domestic transactions.
Other taxes than corporate tax are also subject to Polish MDR reporting – including VAT and excise
duty (customs duty is not covered).
[Who reports] In general, MDR reporting is obligation of intermediary (e.g. advisory firm, tax
advisor), but it can also be a responsibility of beneficiary (the client) and of supporting entity (e.g.
notary, bank, accountant).
[Sanctions] Very material penal fiscal sanctions for non-compliance – up to approx. PLN 25M
(equivalent of approx. EUR 5,8M).
VAT – when to increase attention: e.g. sales
for 1 PLN instead of free-of charge supply, split of
values in batch supplies of different VAT rates
Being VAT compliant in Poland: a challenging journey 20Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. Please see www.deloitte.com/pl/onas for a more detailed description of Deloitte Touche Tohmatsu Limited and its member firms. Deloitte provides audit, consulting, tax and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in 150 countries, we offer top skills, experience and knowledge combined with deep local expertise. We help our clients achieve success irrespective of their location and industry. Deloitte’s more than 244,000 professionals are committed to making an impact that matters. Deloitte Central Europe is a regional organization of entities organized under the umbrella of Deloitte Central Europe Holdings Limited, the member firm in Central Europe of Deloitte Touche Tohmatsu Limited. Services are provided by the subsidiaries and affiliates of Deloitte Central Europe Holdings Limited, which are separate and independent legal entities. The subsidiaries and affiliates of Deloitte Central Europe Holdings Limited are among the region’s leading professional services firms, providing services through over 6,000 people in 41 offices in 18 countries. © 2020 Deloitte Poland.
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