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8 June 2020

White list of VAT payers – new provisions from July 1st, 2020

Although the white list of active VAT taxpayers has been in force since September last year, it was only from January 2020 that sanctions were imposed on taxpayers who make payments to non-listed bank accounts. The amendment of May 6th, 2020, changes some provisions governing these sanctions, to the benefit of taxpayers. The changes will take effect on July 1st, 2020.

Greater freedom of payment to an unlisted account

It is worth reminding that in the case of payments to an account other than the one on the white list, the taxpayer is obliged to exclude expenses from PIT/CIT tax costs and is jointly liable with the seller for the unsettled VAT amount. There is currently one exceptional situation that allows to avoid those sanctions: when the amount of the transaction does not exceed 15,000 PLN (expressed directly or in the total value of the transaction estimated under the contract). Additionally, making payment with the use of split payment only allows you to avoid one of said sanction, joint liability for VAT arrears.

The amendment introduces three additional instances, in which the taxpayer is not required to check whether the bank account is on the white list.

  1. When the payment is made to cession bank accounts or is used for factoring purposes/own economic activity of banks and credit unions (SKOK-s) – provided that the bank, credit union or entity issuing the invoice provide information that the account indicated for payment is a cession account or an account used for factoring or own economic purposes. The new provision covers transactions dated onward from July 1st, 2020. For transactions carried out between January 1st and June 30th there will be no need to obtain such information.
  2. When the invoice documents WNT transactions, import of goods and services, and delivery of goods settled by the buyer.
  3. Payment using the split payment mechanism. According to the amendment, the use of split payment for payments to a contractor’s account not on the white list will allow to include the amount in PIT/CIT tax costs.

White list – ZAW-NR notification within 7 days

The amendment also introduces changes favorable to the taxpayer: the period during which transfers to unauthorized bank accounts should be reported to the offices. From July 1st, the period will increase from 3 to 7 days after making the transfer. Please note that until then, there is a 14-day period with a temporary change in regulations due to a coronavirus pandemic.

Also, the amendment introduces the possibility of submitting notifications to the head of the tax office affiliate to the taxpayer who submits the notification, and not as before: the contractor (bank account owner).

The ZAW-NR notification should contain information such as:

  • company’s name and address (or name, address and permanent address of the business in the case of a natural person);
  • invoice issuer details indicated on the invoice;
  • the number of the invoice to which the payment was made and the amount of the payment paid to that account;
  • date of the transfer order.

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