Forthcoming changes in the taxes – September, November 2019

In the second half of the year 2019 further significant amendments will be implemented in the taxes – a white list of VAT payers and obligatory applying of the split payment mechanism for some sectors.

A white list of VAT payers

As of the 1 September the white list of VAT payers starts, which in principle is to enable checking of the potential business partner and decrease the risk of being entangled into a tax fraud. The white list of the tax payers constitutes a combination of the already existing VAT payers lists. At present, a tax payer may alone check the status of the business partner only as at the present moment, and not for example as at the moment of invoice issuing. The white list of the VAT tax payers will enable checking if an entity is on the list as at a selected day – maximally up to 5 years backwards.

The list will also include the bank account numbers of the entrepreneurs. What’s significant, a transfer to the account different than the one indicated on the list, would result in that we will not recognize tax deductible costs. Moreover, the tax payer that transferred money to the account that has not been checked, shall be jointly and severally responsible with the contracting party, if the one turns out to be a crook.

The new sanctions will be yet in force as of 1 January 2020.

Split payment mechanism

On 1 November 2019 the obligatory application of the split payment mechanism will come into force for some sectors. The obligation shall comprise the goods listed in the new Appendix No. 15 to the Act on VAT (among other steel goods, electronics, scrap and waste, recyclables, car and motorcycle parts, accumulators, diesel fuels, construction services) and it shall relate only with the transactions between the VAT payers for the amount over PLN 15 000 gross.

What is important, in the case of the invoices documenting the transactions between tax payers with the value exceeding PLN 15 000 (gross), the subject of which are the goods or services listed in Appendix No. 15 to the Act, the invoice shall include the words “split payment mechanism”. The Act provides for sanctions for a lack of such a note, amounting to 30% of the VAT tax value arising from such an invoice.
In the case of a lack of payment in the regime of the split payment, also the buyer may be punished with the amount equaling 30% of the VAT tax value, arising from such an invoice.