VAT Returns in Poland
JPK VAT files and VAT returns in Poland
Poland introduced the Standard Audit File for Tax (SAF-T) (in Polish “Jednolity plik kontrolny”, in short, “JPK_V”) so all VAT registered taxpayers must report the list of invoices issued and received in Poland.
The monthly SAF-T reporting does not replace the traditional monthly and quarterly VAT returns. These are included in a separate tab sheet of the Polish JPK.
What is a JPK VAT file or SAF-T file?
SAF-T is a collection of data that is created on the basis of information available in the taxable persons’ IT systems through direct export of data, including information on business operations for the given period, having a standardized layout, and format (XML schema) that allows its easy processing.
Who should submit a JPK VAT file in Poland?
All registered businesses in Poland must file SAF-T returns electronically on a monthly basis. The new JPK_V file, which incorporates the VAT return section and the VAT transactions section, is to be filed mandatorily by all active VAT registered taxable persons that have both a monthly frequency of filing or a quarterly frequency of filing. For monthly periods, the return for each month contains both the VAT return and the VAT transactions section. On the other hand, taxpayers submitting their returns quarterly will be required to submit the VAT transactions section monthly and the VAT return section quarterly.
What types of JPK VAT files exist in Poland?
There are two types of the JPK_V file:
- JPK_V7M – for VAT filings made on a monthly basis; to be used by taxable persons filing their VAT records and VAT returns on a monthly basis.
- JPK_V7K - for VAT filings made on a quarterly basis; to be used by taxable persons filing their VAT records on a monthly basis and VAT returns on a quarterly basis.
These returns inform the tax authorities about the transactions performed during the reported period and they calculate the amount of VAT payable or recoverable from the tax authorities.
Frequency of filing of SAF-T (JPK) in Poland
The SAF-T returns are filed monthly in Poland.
Small businesses can report the VAT return part of the file on a quarterly basis and settle their liability on a quarterly basis. However, for a new small business that registers for VAT, quarterly VAT filing is allowed after the lapse of 12 months following the VAT registration date, and when the business did not supply goods or services listed in Annex 15 to the Polish VAT Act (goods to which the Split Payment Mechanism applies) exceeding a net amount of EUR 1,200,000 in the previous tax year.
For taxpayers filing under JPK_V7K, only the records part is submitted for the first two months of the quarter. After the end of the quarter, the JPK file includes the declaration part, and the records part relates only to the last month of that quarter.
Annual VAT returns are not applicable in Poland.
Frequency of filing
Polish JPK deadline
Polish VAT returns and SAF-T are due to the tax office by the 25th day of the month following the end of the reporting period. If the 25th is on a Saturday, Sunday, or any public holiday, the deadline is postponed until the first next working day.
Polish VAT payments
The deadline for making the relevant VAT payment is the same as for submitting the VAT return part of the SAF-T, i.e., by the 25th day of the month following the month in which the tax point arises. VAT liabilities must be paid by bank transfer and must be paid in Polish zloty.
The reference to be included when making VAT payments is the VAT number of the company, type of the return i.e., JPK_VAT7M, and the period to which the payment refers to.
The Whitelist in Poland
What is the whitelist in Poland?
The “Whitelist” is an electronic list of VAT payers, in which entrepreneurs can verify data on: entities that were not registered for VAT purposes (or were de-registered), and entities registered as the VAT taxpayers (i.e., data on active and exempt VAT taxpayers), including entities whose registration as VAT taxpayers has been restored.
The existing registers were merged into a single list extended by additional data, such as bank account numbers indicated in the tax identification or update notifications.
Where can I find the polish whitelist with VAT information?
The list is made available in the Public Information Bulletin of the Ministry of Finance in a manner that allows checks on whether a given entity is on the list on a selected day, but not earlier than a period of five years preceding the year in which the entity is checked.
If the entrepreneur makes a payment to another account that is not listed and the seller does not pay VAT on this transaction to the tax office, the entrepreneur will be jointly and severally liable with the seller up to the total amount of tax liability for the transaction.
VAT rules on split payments in Poland
When does split payment apply in Poland?
The split payment mechanism, or SPM, is compulsory for sales or purchases of a specific group of goods listed in Annex 15 of the Polish VAT Act. The Annex includes goods determined according to specific Polish Classification of Goods and Services (PKWiU) groups.
The obligatory SPM is used for the supply of goods and services that were covered by the reverse charge mechanism and the existing scope of joint and several liability of the buyer — therefore, it mainly covers the steel, fuel, and construction services.
How is the Polish split payment mechanism applied?
In the case the taxpayer has the obligation to apply the SPM:
- Payment of the amount corresponding to all or part of the VAT amount resulting from the invoice received is made to the VAT account (for more information on the VAT account go to tax micro-account).
- Payment of all or part of the amount corresponding to the net sales value resulting from the received invoice is made to the bank account or SKOK account of supplier.
It covers payments regarding invoices documenting transactions made between taxpayers whose one-off value, regardless of the number of payments resulting from it, exceeds PLN 15,000 or the equivalent of this amount.
In order to identify the SPM, the invoice needs to include a “Split Payment mechanism” annotation. Lack of this wording results in high sanctions.
If the entrepreneur makes a payment to an account that is not listed and the seller does not pay the VAT on that transaction to the tax office, the entrepreneur may become jointly and severally liable for the related VAT arrears, up to the amount paid to the non-listed account. These consequences may be avoided if the payer notifies the head of the relevant tax office within 3 days from the date of the payment order.
Only settlement accounts subject to Polish Banking Law can appear on the whitelist; in practice, these are Polish-format bank accounts. Accounts held directly with foreign banks outside Poland cannot be registered, although accounts operated in Poland by branches subject to Polish Banking Law may be included.
For all the other transactions, each taxpayer is allowed to choose whether they would like to pay their purchase invoices with or without the use of split payment.
Polish VAT refunds
When a SAF-T return is in a repayable position, a VAT refund can be requested together with the submission of the VAT return part of the file (usually monthly, but if the taxpayer falls under the small business category it would be quarterly). A refund is made to the bank account of the company.
The amount of the VAT refund request needs to be indicated in the field P_54 of the SAF-T file (in the VAT return part of the file).
The Polish authorities must reimburse the VAT within 60 days following the return. In some cases - within 25 days (this applies to taxpayers who use the split payment mechanism).
If the company did not perform any taxable activities in a given settlement period, it will receive a refund within 180 days, unless it submits a written application to the tax office along with an appropriate form of security (e.g. in the form of a bank guarantee or a promissory note). Then, the company would receive a refund within 60 days.
The tax refund deadlines (25 days, 60 days, or 180 days) may be extended if the tax office needs more time to verify the refund. If a bank guarantee or promissory note was submitted, the company will receive a refund within the statutory period.
Polish nil JPK submission
A nil SAF-T and VAT return needs to be submitted even if there are no transactions to be reported for that period.
Corrective JPK files
If invoice details reported in the JPK file (e.g. invoice number, invoice date, net amount or VAT amount) are incorrect, the JPK must be corrected without delay. If the error also affects the VAT return section, the related VAT return must be corrected accordingly in line with the underlying invoice data and the Polish tax authorities’ instructions.
If the Ministry of Finance notifies the taxpayer that a JPK_VAT for a period is missing, the missing JPK_VAT for the indicated period must be submitted within 7 days of receiving the notification.
Where the tax office sends a letter regarding JPK errors or requests clarification, the response should generally be provided within 7 days of receipt. The reply may be sent by post or email and should include any requested invoice copies together with a short written explanation of the correction.
If the tax authorities request verification of specific VAT periods, the taxpayer should provide copies of the relevant sales invoices and proof of payment, together with written information on the goods or services concerned, the business activity carried out, and how the purchases relate to taxable activities in Poland (Article 86(1) of the Polish VAT Act).
VAT penalties in Poland
When the late payment result from the submission of a corrective JPK file with additional VAT to be paid, you can apply a reduced interest rate (50% of the basic rate) if you meet all of the following conditions:
- you submit a legally effective correction of the declaration no later than 6 months from the date of expiry of the deadline for submitting the declaration
- you will pay the entire arrears within 7 days from the date of submitting the correction
- the correction was not submitted under the influence of the received notification on the initiation of a tax audit or pending tax proceedings or tax audit
Additional penalties may be charged by the authorities, particularly where the corrections are triggered by an investigation or VAT audit. Find here a tax arrears calculator.
Polish distance sales. VAT on e-commerce
You can find information about the general EU VAT regime on distance sales in our manual about VAT on e-commerce. You may also watch our webinar explaining VAT rules for e-commerce in the European Union.
