News / White list of VAT payers launched in September
As previously announced by the Ministry of Finance, on 1 September 2019 an electronic specification of active VAT payers will be published (“white list of VAT payers”), which will be kept by the head of the National Revenue Administration (KAS).
Using special software or entering necessary data by hand, the list will enable a check whether at the transaction time the business partner was an active VAT payer. The register will contain basic information about the taxpayer, such as its name, tax identification number NIP, as well as the bank account number associated with the entrepreneur.
The present regulations impose new obligations on Polish entrepreneurs. From January 2020 onwards, before any payment is made, the entrepreneur will be obliged to check whether its client’s or supplier’s account is showed in the “white list”.
If a payment exceeding PLN 15 thousand is made to a business partner’s account that is not showed in the register, this amount cannot be found to be a tax cost. In addition, if a seller does not pay VAT on such transaction, then the buyer will incur joint and several liability together with the business partner (no split payment model applies).
Special attention should be drawn to payments made to foreign entities. In this situation, the foreign business partner will have to be checked for registration in Poland for VAT purposes. In such situation, the amended regulations will also apply to such entities, and the payment arising from transactions having values exceeding PLN 15 thousand will be subject to the restrictions arising from the regulations on the white list of VAT payers.
Also doubtful are virtual accounts, i.e. individual settlement accounts allocated to each customer. Such accounts are used e.g. in settlements of mass payments. Rapid Internet payments may cause certain problems. This payment mechanism consists in transferring cash not to the supplier’s account but to an account of the intermediary that transfers it further on for a commission. The white list of VAT payers shows only one basic settlement account for the given entrepreneur, reported to the revenue administration. Consequently, virtual accounts associated with the client’s individual account are not showed in the list. Following the amendment, payments made to virtual accounts in excess of PLN 15 thousand cannot be recognised as tax costs. However, in connection with numerous comments made during the legislative process, the Ministry of Finance decided to prepare appropriate tax explanations that in accordance with the newest announcements will accede to interpretations being in favour of the taxpayer.
We will be happy to discuss details connected with the white list of VAT payers, compliance procedures enabling avoidance of unwelcome sanctions, and also to provide you with other ongoing VAT advisory.