Poland has amended the tax provisions for VAT declarations and payments from 1 July 2018. These amendments apply to Polish companies, but also to foreign companies operating in Poland.
EXTENSION OF THE REPORTING IN THE JPK TAX PACKAGE
Since 1 January 2018, all VAT subjects, whether they are micro-enterprises, SMEs or big companies, must send monthly and electronically the JPK_VAT file containing the recorded data in the register of purchases and sales.
As of 1 July 2018, all VAT subjects must also submit, at the request of the Polish tax authorities, a control file containing the following information :
- Accounting Books (JPK_KR)
- Bank Statement (JPK_WB)
- Warehouse (JPK_MAG)
- VAT invoices (JPK_FA)
- Tax revenue and expenditure accounting (JPK_PKPIR)
- Revenue records (JPK_EWP).
The companies must prepare the control file in the format imposed by the Ministry of Finance, which implies a compliance of computer accounting software.
INTRODUCTION OF VAT SPLIT PAYMENT
In order to fight against tax evasion, the Polish tax authorities set up, from 1 July 2018, the “Split Payment” mechanism for VAT.
This feature allows some companies to pay their provider on two different accounts :
- The amount excluding taxes (VAT) is paid on the supplier’s bank account ;
- The amount of the corresponding VAT is paid on an account dedicated to VAT by the same supplier.
The split payment mechanism applies to companies registered for VAT in Poland. They should have a bank account subjected to Polish regulation and collect VAT from taxable subjects (for B2B only). Therefore, Split payment is not likely to apply in B2C relations.
Moreover, the use of the VAT account is limited to the VAT collection from a taxable customer and the VAT refund from the Polish tax authorities.
In addition, it should be noted that the mechanism of split payment is currently optional. Companies can choose to use it or not.