Payment of VAT to micro accounts
As from January 01, 2020, the VAT due to the Polish State has to be transferred to a specific Polish bank account (so called “micro account”), which is different for each taxpayer. The individual bank account number of foreign taxpayers will in principle include their 10-digit tax number (NIP). The transfer of money to the former bank accounts of the Polish State is no longer possible. You may check your own micro account via this official website.
White List of Taxpayers
Poland has introduced a new website where the VAT status of (established and non-established) Polish taxpayers may be checked out. This “White List” notably includes the name of the taxpayer, its Polish VAT number, the date of registration and date of deregistration. The list also shows the bank account to which counterparties should make payments. As from 1 January 2020, if a payment is transferred to a different bank account (or in case of cash payment), the expense would not be regarded as a deductible cost and the customer would be jointly and severally liable with the seller for his tax arrears in the part of VAT that falls on the payment for the transaction.
Lack of registration of bank account in the white list and consequences
In principle, all suppliers dealing with Polish customers have to record their bank account(s) in the so-called White List in Poland. Based on the Polish law, the Polish customers must indeed make payments to a bank account available in said White List. If a customer pays to another bank account, there are tax consequences for him: the expense would not be regarded as a deductible cost and the customer would be jointly and severally liable with the supplier for the VAT due. Changes in that matter have been introduced on 1 July 2020 and it is now easier for the customers to avoid these negatives consequences. Read more…
Split Payments – Measure against Fraud Practices
A split payment system will come into force on November 1st, 2019. Polish VAT will have to be paid to a separate and blocked Polish bank account of the supplier for invoices issued in relation to B2B supplies of specific goods and services.
SAF-T to replace VAT returns in 2020
The SAF-T files will replace the VAT returns in Poland. The entry into force of that measure has however be postponed to October 2020 (instead of July 2019 initially). In first instance, this will apply to large businesses only (at least 250 employees or turnover of EUR 50 million and balance sheet total above EUR 43 million). These thresholds have to be regarded from a global perspective, meaning that the foreign entities with a Polish VAT number should not consider their Polish activities only. Small and medium business will be impacted as of October 2020.
The SAF-T files will have to meet precise conditions in order to be compliant and additional information will therefore have to be included.
Local reverse charge on specific goods
A new reverse charge mechanism is applicable for domestic sales of electronic devices [tablets, laptops, mobile phones and video game console] provided the total value of the transaction exceeds PLN 20.000.
Automatic VAT deregistration
Since 01/01/2017, Polish VAT number of foreign companies having no transactions in Poland during six months or two consecutive quarters will be automatically unregistered by the Polish VAT authorities.
General Power of Attorney
Polish Ministry of Finance published a draft of the new layout [PP0-1 and OPO-1] of the general Power of Attorney [authorizing to act in all tax and other matters within the jurisdiction of the tax authorities]. These forms will have to be submitted to the tax authorities electronically via the Tax Portal [www.portalpodatkowy.mf.gov.pl] or through the Central Registration and Information on Economic Activity [CEIDG].
New additional VAT filing requirement
As from 01/07/2015, a new sales listing is applicable to report all transactions subject to local reverse charge.
Intra-Community acquisitions
A deduction of input VAT will be possible provided there is also output VAT reported on the VAT return for the filing period in which the VAT issue arises. When output VAT is not reported within three months of the VAT issue, it will no longer be possible to retrospectively report the input VAT.
Update of the penalties system
The penalty system will be updated with new penalties of up to 30% of the VAT due. This penalty will apply whenever a business requests an excessive VAT refund or makes a smaller payment than the applicable amount for the relevant period. The penalties can go up to 100% where there is no underlying supply on an invoice issued. These penalties will apply if the tax office uncovers these inconsistencies during an audit.
Reverse charge
The scope of the reverse charge mechanism is being extended to construction services that are provided by foreign subcontractors and Polish taxable businesses.
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