JPK_VAT – a summary of changes from October 1st

The new JPK_VAT is a uniform control file consisting of a VAT declaration and a record of transactions. The new format has been designed to contain and transfer complete information about purchase as well as sales records and services for the specified taxing period.

The currently used VAT-7 and VAT-7K declarations and records will be replaced by one joint JPK_VAT document starting from October 1st, 2020. Due to the close deadline, ARPI Accounting experts have prepared a summary of the upcoming changes to serve as a comprehensive source of information.

Essential knowledge in six points:

1. The GTU codes introduced in the law should be used form marking sales invoices only (including advance and correcting invoices issued for documents received before the introduction of the new JPK_VAT).
2. GTU values ​​from 01 to 10 represent categories of goods (as explained later in this article), while those from 11 to 13 – services.
3. Annex 15 of the VAT law sets out the list of goods that are eligible for GTU 05, 06, and 08 codes. Please refer to it by clicking here.
4. Annex 12 of the VAT law specifies the list of goods that qualify for marking with the code GTU_08. Please refer to its content.
5. The code GTU_12 denotes a wide range of indefinite services. See the list in the regulation for reference.
6. 6. Invoice marking: if the payment was made using the split payment method (abbrev. in Polish as MPP), it is always worth mentioning it directly on the invoice.

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goods and services codes (GTU)

The obligation to mark sold goods and services with GTU symbols is an entirely new obligation in the scope of VAT settlements.

Each VAT taxpayer, when preparing sales invoices for JPK_VAT, should use an appropriate GTU symbol, matched to the goods or service categories. It is worth remembering that the obligation also applies to advance, corrective and final invoices (issued before October 1st).

Starting from the beginning of October, please pay special attention to matching the code to specific items on the invoice. It will allow you to avoid mistakes that can result in a financial penalty, imposed by the tax office, for up to 500 PLN per error in the JPK_VAT file.

GTU designations for goods and services in JPK_VAT

The structure of GTU numbers resembles the code numbers in the previously valid VAT records. When marking goods and services with new codes, the date of the tax obligation should always be taken into account. The cut-off date is October 1st, i.e. the date of entry into force of the JPK_VAT regulations.

It is worthwhile to read the full list of GTU codes and identify the goods and services offered by the company.

Goods:

• GTU_01 – Alcoholic beverages according to the Excise Duty law (ethyl alcohol, beer, wine, fermented beverages, intermediate products with an alcoholic strength by volume of between 1.2% and 22% by volume).
• GTU_02 – Fuels included in the fuel package, listed in art. 103 paragraph 5aa of the VAT law (petrol, motor fuels, LPG, diesel and heating oils, and liquid biofuels).
• GTU_03 – Oils and lubricants (heating and lubricating oils, plastic lubricants, lubricants).
• GTU_04 – Cigarettes, smoking tobacco, cigars and cigarillos, raw tobacco, e-cigarette liquid, innovative products according to the excise tax law.
• GTU_05 – Waste, wreckage, and secondary raw materials.
• GTU_06 – Electronic devices and their parts and materials (toners and ink cartridges, stretch film, computers, processors, disks, telephones, consoles, cameras).
• GTU_07 – Motor vehicles and vehicle parts and equipment.
• GTU_08 – Precious and non-precious metals (silver, gold, platinum, waste, and scrap from precious and non-precious metals, jewelry and jeweler’s manufacture, coins, rolled flat products, bars, sections, ribbed sheets, cold drawn wire, unwrought aluminum).
• GTU_09 – Medicines, medical devices, medicinal products, foodstuffs for special purposes.
• GTU_10 – Real estate (buildings, structures, and land).

Services:

• GTU_11 – Greenhouse gas emission allowances (allowance transfer services).
• GTU_12 – Intangible services (consulting, accounting, legal, management, training, marketing, head office services, advertising, market research, and public opinion research, research, and development).
• GTU_13 – Transport and storage services.

Intangible services in JPK_VAT: GTU_12

A separate paragraph should concern the GTU_12 symbol. This code designates a wide range of intangible services, in particular regarding marketing, consulting, legal, and accounting. The full list of services is contained in § 10 par. 3 of the VAT Regulation.

Below we present a list of services covered by the GTU_12, along with the corresponding PKWiU markings:

• advisory services (including legal and tax consultancy, as well as consultancy related to management) – PKWiU 62.02.1, 62.02.2, 66.19.91, 69.10.11, 69.10.12, 69.10.13, 69.10.14, 69.20.3, 70.22. 11, 70.22.12, 70.22.13, 70.22.14, 70.22.15, 70.22.16, 70.22.3, 71.11.24, 71.11.42, 71.12.11, 71.12.31, 74.90.13, 74.90.15, 74.90.19
• accounting – PKWiU 69.20.2
• legal – PKWiU 69.1
• management – PKWiU 62.03.11, 62.03.12, 63.11.12, 66.11.19, 66.30.11, 66.30.12, 68.32.11, 68.32.12, 68.32.13, 69.20.4, 70.22.17, 70.22.2, 90.02.19.1
• training – PKWiU 85
• marketing – PKWiU 73.11.12
• head offices – PKWiU 70.1
• advertising – PKWiU 73.1
• market and public opinion research – PKWiU 73.2
• research and development work – PKWiU 72

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fields and codes in the registration part

Sales record codes:

• SW – mail-order sale from the territory of the country taxed according to art. 23 of the VAT law.
• EE – provision of telecommunications, broadcasting, and electronic services for which the place of performance is determined under Art. 28k of the VAT law.
• TP – relationships between the parties to the transaction referred to in Art. 32 sec. 2, point 1 of the VAT law.
• TT_WNT – intra-Community acquisition settled under a trilateral transaction in a simplified procedure.
• TT_D – delivery to the third taxpayer in the simplified procedure provided for a trilateral transaction.
• MR_T – provision of margin taxable tourism service.
• MR_UZ – deliveries of second-hand goods, works of art, collectors’ items, and antiques, taxed on a margin basis.
• I-42 – intra-community supply of goods following the importation of the goods under customs procedure 42 (import).
• I-63 – intra-community supply of goods following the importation of the goods under customs procedure 63 (import).
• B_SPV – transfer of a single-purpose voucher by a taxpayer acting on his behalf.
• B_SPV_DOSTAWA – deliveries of goods and services related to the single-purpose voucher.
• B_MPV_PROWIZJA – intermediation in the transfer of multi-purpose vouchers.
• MPP – transactions subject to the obligation to apply the split payment mechanism.

Sales receipt codes apply to sales documented at the cash register, as well as on internal documents.

• RO – an internal collective document containing sales from cash registers (cash reports).
• WEW – an internal document, e.g. regarding the free of charge transfers of goods, subject to VAT.
• FP – an invoice for the sales recorded on the cash register.

Purchase record codes

• IMP – importation of goods, including goods accounted under art. 33a of the VAT law.
• MPP – transactions subject to the obligation to use the split payment mechanism.

MPP – split payment mechanism

The MPP code applies to the transactions subjected to the split payment obligation. Specific invoices should contain the literal “metoda podzielonej płatności” note. The lack of said note does not release the buyer from entering the MPP code into the records.

Under the law, the said obligation applies to transactions that meet the following conditions:

• The invoice documents the sale (or the advance payment for) of goods or services listed in Annex 15 to the VAT law.
• The amount due (or the value of the advance payment) on the invoice exceeds 15,000 PLN.
• Payment for the invoice is not made using deduction referred to in Art. 498 of the Civil Code.
• The payment does not result from the invoice documenting the transactions carried out in the performance of the public-private partnership agreement referred to in Art. 7 sec. 1 of the Law of 19 December 2008 on public-private partnership (consolidated text Journal of Laws of 2020, item 711), if the receiving entity was a private partner or a sole proprietorship of a partner, as of the date of delivery or a capital company.

Proof of Purchase Codes:

• VAT_RR – VAT RR invoice referred to in art. 116 of the law.
• WEW – an internal document.
• MK – an invoice issued by a taxpayer who is a supplier or service provider who chose the cash settlement method. The invoice issued by a taxpayer using the cash method must be “cash method.”

TP – related entities

According to the definition included in the CIT law, related entities should be understood as:

• entities from which one entity exercises significant influence over at least one other entity, or
• entities that are significantly influenced by the same other entity or the spouse, relative or affinity to the second degree of a natural person exerting significant influence over at least one entity, or
• a company without legal personality and its partners, or
• the taxpayer and his foreign establishment, and in the case of a tax capital group – a capital company that is part of it and its foreign establishment.

The new JPK_VAT system introduces another obligation in this matter. All transactions where the relationship can be found in the above sense must be marked with the TP code.

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financial penalties for mistakes in the JPK_VAT

The new JPK_VAT file makes reporting easier for taxpayers, but also carries the risk of financial penalties for errors and inconsistencies (when the information contained does not match the actual data).

Penalties do not apply to natural persons running a business. For all other entities, remember that if the analysis made by the tax administration detects errors or data inconsistent, the head of the Tax Office will be able to impose on the taxpayer a financial penalty for up to 500 PLN for each error found.

However, the aforementioned penalties are not imposed automatically, and can be avoided. The penalty does not apply if the taxpayer prepares and submits a correction of the records, addressed to the head of the tax office. The submission should be made within 14 days from the date of payment request delivery.