The first annual payment-term report form now available
2020 is the first year for which some (large) entrepreneurs are obliged to file a payment-term report according to the amended legislation on counteracting excessive payment backlogs in commercial transactions, which took effect on 1 January 2020. The Ministry of Development, Labour and Technologies has just provided access to the electronic form of the report. The new annual obligation which must be complied with by the end of January 2021 applies to:
- fiscal unities (the so-called tax capital groups) – regardless of the value of their revenues
- other taxable persons whose revenues exceed EUR 50 million.
The obligation to file reports on payment terms in commercial transactions was introduced to the Act of 8 March 2013 on counteracting excessive backlogs in commercial transactions (“the Act”) upon an amendment of 2019 (the Act of 19 July 2019 amending some acts with the purpose of limiting payment backlogs took effect on 1 January 2020). The obligation to file the reports, which will subsequently be publicized, is intended to reduce the tendency among entrepreneurs to act in a way which is likely to give rise to payment backlogs.
Pursuant to Art. 13a(1) of the Act, the obligation to file reports on payment terms in commercial transactions in the preceding calendar year rests with managers of entities. A manager, within the meaning of said regulation, is a member of the management board or another managing body, and if the body consists of a number of persons – the members thereof (for a fiscal unity, the report is filed by the manager of each of the entities which make up the fiscal unity).
The group of entities obligated to file reports on payment terms is specified in Art. 13a(1) of the Act by reference to Art. 27b(2) of the Act of 15 February 1992 on Corporate Income Tax, which provides for:
- fiscal unities (regardless of the value of their revenues),
- taxable persons other than fiscal unities, whose revenues exceed the value of EUR 50 million.
Initially, the obligation to file the report on payment terms in commercial transactions in 2020 should be complied with by 31 January 2021 and the report should be submitted electronically to the Minister of Development, Labour and Technologies, using the form available in the Public Information Bulletin (BIP) or via the electronic platform of public administration services.
The report comprises the following data:
1) the business name and tax ID number;
2) the value of cash payments received in the preceding calendar year broken down into 4 groups, i.e. payments subject to payment terms of: a) up to 30 days, b) from 31 to 60 days, c) from 61 to 120 days, and d) over 120 days (counted from issuance of the invoice or bill which confirms delivery of goods or performance of services);
3) the value of cash payments made in the preceding calendar year broken down into 4 groups i.e. payments subject to payment terms of: a) up to 30 days, b) from 31 to 60 days, c) from 61 to 120 days, and d) over 120 days (counted from issuance of the invoice or bill which confirms delivery of goods or performance of services);
4) the value of cash payments not received in the preceding calendar year within the payment term specified in the contract, and the percentage value of such payments in the overall value of cash payments due to that entity during this year;
5) the value of cash payments not made in the preceding calendar year within the payment term specified in the contract, and the percentage value of such payments in the overall value of cash payments which the entity was obliged to make during this year;
The new reporting obligation may be linked with, among other things, the new sanction mechanisms introduced to the Act from 1 January 2020. According to Art. 13b(2), excessive backlogs in making cash payments occur if, over the period of 3 successive months, the sum total of payments not made and made with delay by the entity is at least PLN 2,000,000. In the initial years following the effective date of the new legislation, the threshold value of payments not made and made with delay will be higher and will amount to PLN 5,000,000 in 2020 and 2021. If the statutory limits are exceeded, the President of the Office for Competition and Consumer Protection (UOKiK) may open proceedings against the defaulting entity and impose a fine thereon. For the purpose of accessing the accounts payable ageing analysis, pursuant to Art. 13c(4) of the Act, the President of the UOKiK was given the right to apply to the Head of National Fiscal Administration for information from the sales records referred to in Art. 299f §7 of the Act of 29 August 1997 – Tax Code.
The form is available at:
Should you have any questions or doubts, you are welcome to contact us.
KONTAKT
E: leszek.rydzewski@pl.Andersen.com
T: +48 22 690 08 69
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