Poland: Classify payments made to a bank account not to include in the white list as tax deductible upon conditions

Jun 23, 2020 | VAT Updates

VAT Updates Europe

On 6 May 2020 the Parliament (the Sejm) adopted a draft bill amending PIT, CIT, VAT Acts, and the Tax Ordinance Act. Among proposed changes are in particular: the possibility of making payments on bank accounts not indicated on the so-called White List and adapting the PIT and the CIT Acts to the Polish Classification of Products and Services (PKWiU 2015).

The changes are aimed at reducing the number of disputes between taxpayers and tax authorities.

The bill is currently under discussion in the Senate.

EXEMPTION FROM BANK ACCOUNT NUMBER VERIFICATION

As of 1 July 2020, it will be possible to classify as tax-deductible costs payments made to a bank account not included in the White List, if a taxpayer:

  • settles an invoice using split payment mechanism (MPP), with respect to payments made from 1 January to 30 June 2020;
  • settles an invoice documenting intra-Community acquisitions of goods, import of goods/services or delivery of goods settled by a purchaser;
  • makes a payment through a bank transfer to a bank (or SKOK – local savings institution) which:

 

a) is used for settlements of receivables purchased by a bank, so-called assignment account,

b) is used by a bank for factoring activities,

c) is not a settlement account, but an account used for its own economy purposes,

– provided that the bank will inform the taxpayer that the bank account is dedicated to one of the abovementioned activities.

Additionally, the deadline for notifying the head of the tax office about making a payment to a bank account not indicated in the White List will be extended from 3 to 7 days.

Moreover, the notification has to be submitted to the head of the tax office relevant for the taxpayer making the payment and not as previously to the head of the tax office relevant for an entity issuing an invoice. The bill also confirms the previous explanations by the Ministry of Finance, according to which the notification will be submitted once – at the first payment to a given bank account.

INDIVIDUAL TAX ACCOUNTS

The bill provides a possibility to pay all taxes, fees, and non-budgetary receivables to an individual tax account. So far (from 1 January 2020) it was available only in relation to PIT, CIT and VAT payments.

The Ministry of Finance will decide which specific taxes/fees/receivables are to be paid to an individual tax account.

It is worth mentioning that, same as before, in the case where the payment on the individual tax account cannot be processed due to technical reasons, the tax office will transfer it to the proper bank account.

ADAPTING THE PIT AND CIT ACTS TO PKWIU 2015

The purpose of the draft bill is to replace from 1 January 2021 references to PKWiU 2008 with references to PKWiU 2015.

Proposed change results from the fact that PKWiU 2008 is still partly using for the classification of goods and services, among others these covered by mandatory split payment mechanism.

The change is of technical character – it is aimed at the assignment of new symbols and statistical grouping of products/services, without substantive amendments to the tax law regulations and the taxpayer’s legal status.

APA REPORTS TREATED AS TAX DECLARATION

The amending act extends the catalog of documents submitted on the basis of tax law regulations by taxpayers (payers and collectors) which are treated as tax declarations (Article 3 (5) of the Tax Ordinance Act) to taxpayers’ reports on the realization of advance pricing agreements.

 

Source Credit – asbgroup