The long-announced changes in the recording of transactions for VAT purposes have become a fact. On October 1st 2020, new regulations came into force, under which taxpayers will no longer submit separately VAT-7 and VAT-7K returns and the JPK file (Standard Audit File for Tax; SAF-T).
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Scope of changes
The current reporting process has been replaced by a new electronic document JPK_VAT with a return, which consists of two elements – the registration part and the return part. The new structure of JPK_V7M applies to taxpayers who settle monthly, while JPK_V7K applies to small taxpayers who use quarterly settlements.
All taxpayers, whether large, medium-sized, small or medium-sized enterprises, as well as micro-enterprises, are required to report transactions using the new structure of the JPK from 1 October of this year, in particular:
- Taxpayers who settle VAT liabilities on monthly basis are required to submit one file which is to contain both the recording and the return part.
Example: JPK for October to 25 November
- Taxpayers who settle VAT liabilities on quarterly basis are required to submit a JPK_VAT with only the completed recording section for the first 2 months of each quarter. After the end of a given quarter, however, they will be obliged to complete the recording part for the third month of the quarter and the return part of the JPK_VAT for the entire quarter.
Example: JPK for Q4, only the recording part of JPK until November 25th, only the recording part of JPK until December 25th, and the recording part for the last month and the return part for all quarter periods until January 25th 2021
The main core of changes in the entire process of recording business transactions is to extend the scope of information provided to tax authorities. The new structure of JPK provides for marking:
- selected categories of goods and services using the so-called GTU codes (10 for goods and 3 for services)
- type of transactions and specific procedures
- type of documents: evidence of sale and purchase.
Please refer to the summary of the markers in the section – Check how to apply new markers.
Adjustments to the settlements
In the case of an adjustment to the submitted records, a new, complete XML file containing the corrected data should be submitted. It is not acceptable to submit a file containing only corrected data.
In order to correct the new JPK_VAT, the taxpayer will be able to apply one of three options:
- adjustment of both the recording and the return part
- adjustment of the recording part only, the return part remains unchanged (in this case, the date of submission of the return remains unchanged);
- adjustment of the return part only (the effect is the same as for the current adjustment of the return).
The adjustment should be sent by the taxpayer within 14 days from the date on which it is noticed that the records contain mistakes or data which are not in accordance with the facts or when there is a change in the data covered by the records.
Fines provided for mistakes
According to the amended provisions of the VAT Act, the authority may impose on the taxpayer – by issuing a decision – a fine of PLN 500 for each mistake that makes it impossible to verify the correctness of transactions.
A financial fine may be imposed, in particular when:
- the taxpayer fails to send the adjusted records
- the taxpayer does not provide explanations
- the taxpayer submits the adjustment or explanations after the deadline
- the explanations of the taxpayer do not prove that the records are free of mistakes.
Furthermore, the new Article 61a added to the Penal and Fiscal Code provides for the imposition of fines on individuals engaged in economic activities who commit a fiscal petty offence or fiscal offence.
How to prepare for new challenges?
The implementation of the new JPK structure imposes a number of new tasks on entrepreneurs and brings with it numerous difficulties and the risk of severe sanctions, as well as the potential involvement of employees of many company departments.
Therefore, it is worthwhile to properly prepare your company for new challenges, in which Accace will be happy to support you. Our assistance will consist primarily in support you on the correct marking of transactions:
- Including assignment of the correct GTU code, classification under the correct CN code and PKWiU symbol.
- Including determining the obligation to apply a special settlement procedure.
- Including the confirmation of transactions by means of appropriate evidence.
Check how to apply new markers
Supply of alcoholic beverages – ethyl alcohol, beer, wine, fermented beverages and intermediate products as defined in the provisions on excise duty.
upply of goods referred to in Article 103(5aa) of the VAT Act, which have only the CN codes specified in that provision; goods which can generally be classified under:
- aviation gasolines
- certain motor gasoline
- liquid petroleum gas (LPG)
- gas oils
- heating oils
- jet fuel of the petrol type
- paraffin type jet fuel
- remaining gas oils
- liquid fuels
- other goods referred to in Article 86(2) on excise duty, listed in Appendix 1 to that Act, irrespective of CN code.
Supply of heating oil within the meaning of the provisions on excise duty and lubricating oils, other oils with CN codes from 2710 19 71 to 2710 19 99, excluding products with CN code 2710 19 85 (white oils, liquid paraffin) and plastic greases falling within the CN code 2710 19 99, lubricating oils of CN code 2710 20 90, lubricating preparations of CN heading 3403, excluding plastic lubricants of this heading.
Supply of tobacco products, dried tobacco, liquid for electronic cigarettes and innovative products within the meaning of the provisions on excise duty.
Delivery of waste – only those specified in item 79-91 of Annex 15 to the VAT Act, i.e.:
- wrecks for scrapping other than ships and remaining floating structures
- glass waste
- paper and cardboard waste
- remaining rubber waste
- plastic waste
- non-hazardous metal-containing waste
- hazardous waste containing metal
- waste and scrap of electric cells and accumulators; spent primary cells, spent primary batteries and spent electric accumulators
- metallic secondary raw materials
- secondary raw materials from glass
- secondary raw materials from paper and board
- secondary plastic raw materials
- rubber secondary raw materials.
Supply of electronic devices as well as parts and materials for them, exclusively specified in item 7-9, 59-63, 65, 66, 69 and 94-96 of Annex 15 to the VAT Act, i.e.:
- emulsions for surface sensitization for use in photography; chemical preparations for use in photography (n.e.c.) – exclusively toner cartridges without a print head for automatic data-processing machine printers
- typewriter ink, draft ink and other inks – exclusively ink cartridges without ink head for automatic data processing machine printers
- plates, sheets, film, foil, tape and strip of plastics, not reinforced, laminated or combined with other materials – stretch foil exclusively
- electronic integrated circuits – processors exclusively
- computers and other automatic data-processing machines
- memory units – hard disk drives (HDDs) exclusively
- solid-state non-volatile storage devices – SSDs exclusively
- phones for mobile networks or other wireless networks – exclusively mobile phones, including smartphones
- video game consoles (of a kind used with a television receiver or standalone screen) and other appliances for playing games of skill or chance with an electronic display – excluding parts and accessories
- digital cameras for photography and digital cameras
- parts and accessories for photocopiers – exclusively cartridges with ink and print head for automatic data-processing machines, toner cartridges with print head for automatic data-processing machines
- operating system software packages – SSDs exclusively
- remaining application software packages – SSDs exclusively
- other films and video recordings on disks, magnetic tapes, etc. – SSDs exclusively.
Supply of vehicles and car parts with codes only CN 8701 – 8708 and CN 8708 10.
Delivery of precious and base metals – only those specified in item 1-3 of Annex 12 to the VAT Act and in item 12-25, 33-40, 45, 46, 56 and 78 of Annex 15 to the VAT Act.
Supply of medicines and medical devices – medicinal products, foodstuffs for particular nutritional uses and medical devices covered by the notification obligation referred to in Art. 37av section 1 of the Pharmaceutical Law Act.
Supply of buildings, structures and land.
Provision of services in the scope of transferring greenhouse gas emission allowances referred to in the greenhouse gas emission allowance trading system Act.
Provision of intangible services – exclusively: consulting, accounting, legal, management, training, marketing, head offices, advertising, market and public opinion research, in the field of scientific research and development works.
Provision of transport services and storage management – Section H PKWiU 2015 symbol ex 49.4, ex 52.1.
Delivery as part of the distant sale from the territory of the country, referred to in art. 23 of the VAT Act.
Provision of telecommunications, broadcasting and electronic services referred to in art. 28k of the VAT Act.
Existing relationships between the buyer and the supplier of the goods or service provider referred to in art. 32 section 2 point 1 of the VAT Act.
Intra-Community acquisition of goods by the second VAT payer as part of a tripartite transaction under the simplified procedure referred to in Chapter XII, Chapter 8 of the VAT Act.
Supply of goods outside the territory of the country by the second VAT payer under a tripartite transaction under the simplified procedure, referred to in chapter 8 of section XII of the VAT Act.
Provision of tourism services taxed on the basis of a margin in accordance with art. 119 of the VAT Act.
Supply of second-hand goods, works of art, collectors’ items and antiques, taxed on the basis of a margin in accordance with art. 120 of the VAT Act.
Intra-Community supply of goods after importation of these goods under customs procedure 42 (import).
Intra-Community supply of goods after importation of these goods under customs procedure 63 (import).
Transfer of a single-purpose voucher made by a taxpayer acting on his own behalf, taxed in accordance with art. 8a paragraph 1 of the VAT Act.
Supply of goods and provision of services to which the single-purpose voucher relates to a taxable person who issued the voucher in accordance with Article 8a paragraph 4 of the VAT Act.
Provision of brokering services and other services related to the transfer of multi-purpose vouchers, taxed in accordance with art. 8b paragraph 2 of the VAT Act.
Transactions subject to the obligatory split payment mechanism.
*The MPP designation should be applied to invoices of a gross amount higher than PLN 15 000.00, which document the supply of goods or services listed in Appendix 15 to the VAT Act.
Input tax on imports of goods, including imports of goods accounted for in accordance with Article 33a of the VAT Act.
Transactions subject to the obligatory split payment mechanism.
Internal summary document containing sales from cash registers.
Invoice referred to in Article 109 section 3d of the VAT Act (issued for a receipt).
RR VAT invoice referred to in Article 116 of the VAT Act.
Invoice issued by a taxpayer who is a supplier of goods or services and who has opted for the settlements on a cash basis specified in Article 21 of the VAT Act.