The key aspect of the bad debt relief is the time elapsed from the payment date of the unpaid invoice. From January 1st, 2020, in Polish law, the period after which the debt is considered uncollectible (the so-called bad debt) in VAT is 90 days.
Taxpayers with unpaid receivables will be able to declare the debt unpayable and reduce the VAT tax base after 90 days from the original payment date shown on the document confirming the debt. Thus, they may be taken into account when calculating the amount of relief due to VAT taxpayers.
The relief for bad debts is crucial for VAT payers primarily because the tax obligation in VAT arises regardless of whether the taxpayer has received payment for a taxable sale or service.
The entrepreneur is entitled to the VAT relief only if all the following criteria are met.
The new JPK_VAT is a uniform control file consisting of a declarative and sales record component. The declarative part – JPK_V7M form monthly or JPK_V7K for the quarterly statement period – will replace the current VAT statement, while the sales record component is a continuation of the previously used JPK_VAT file.
To apply for the relief during the JPK_VAT filling, you should follow the steps listed below:
Even receivables considered uncollectible may pay off one day, so it is important to remember to correct the JPK_VAT – by increasing the tax base by the amount repaid (or the amount of tax due for a given period).
In that case, one should select “1” in the KorektaPodstawyOpodt field, and make corrections separately for each value, with the division into the corresponding VAT rates.
The amendments to the Anti-Crisis Shield introduced a temporary provision limiting the period of declaring a debt non-repayable to 30 days. However, it applies only to PIT/CIT and flat-rate tax. The rules on VAT have not changed.
Due to the COVID-19 pandemic, the obligation for debtors to settle unpaid payments by the tax has been temporarily excluded. Therefore, during the settlement periods falling in 2020, the debtor will not be obliged to increase the income constituting the basis for calculating advances or the income constituting the basis for calculating the lump sum – provided that the following conditions are met:
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