Further changes to the JPK_VAT Regulation
On 27 May 2021, the Ministry of Finance presented a revised bill of amendment to the regulation laying down the detailed scope of JPK_VAT, of which we informed in our alert of 25 March.
The changes proposed by the Ministry are to address the postulates raised during public consultations by representatives of business and experts. The major revisions are presented below:
MPP (Split Payment Mechanism) code
In the current version of the bill, the Ministry has proposed that the MPP code should not be mandatory at all. According to the initial version of the bill, this code was to be used with respect to all transactions subject to split payment mechanism, even those that were voluntarily covered by the mechanism, which could cause problems in practice.
At the moment, the TP code is generally used for all transactions between related enterprises.
Initially, the Ministry planned to narrow down the obligation to use the code to the supply of goods or provision of services to a related enterprise only if the total amount of receivables exceeded PLN 15,000 or the equivalent thereof in a foreign currency, and to waive this obligation with respect to transactions where relations between parties resulted from links with the State Treasury, local government units or associations thereof.
In the new version, the Ministry intends to give up on the previously proposed change introducing the value limit and retain the waiver with respect to links with the State Treasury, local government units and associations thereof.
Originally, the Ministry proposed that services to be identified with the DTU-12 code should be made more precise by reference to the Polish classification of products and services – PKWiU 2015, and this proposal also applies in the new version. However, compared with the previous version of the bill:
- accounting services were replaced with services of bookkeeping and financial audit, which seems to result in extension of the range of services to be identified with this code,
- training services were replaced with out-of-school forms of education.
Bad debt relief
What is new is the obligation to indicate the payment date or date of payment receipt in case of output tax adjustments made as a result of benefiting from the bad debt relief. The Ministry believes that this change will help verify that debts are uncollectible with no need to carry out inspections or checks involving the taxpayer.
In connection with changes to VAT consisting of adoption of the EU e-commerce package, which are to take effect on 1 July 2021, new codes will be introduced to JPK-VAT:
- WSTO_EE, which is to replace SW and EE – for intra-Community supply of goods from the territory of Poland and the telecommunication, broadcasting and electronic services referred to in Art. 28k of the VAT Act, irrespective of whether the taxpayer exceeds the threshold for indication of the place of provision of such services.
- IED – for online sales platforms responsible for VAT collection on low-value consignments originating from outside the EU, which will not register for the IOSS or OSS procedures in Poland or any other EU Member State.
The previously proposed changes regarding more precise descriptions of other GTU codes, designation of periodic reports and internal documents as well as collective recognition of simplified invoices remain unchanged.
The new version of the regulation is to take effect on 1 July 2021, and July 2021 will be the first account period to which it will apply.
Should you have any questions or doubts regarding the issues discussed here, we are ready to assist you.