BUSINESS
“WHITE LIST” AND SPLIT PAYMENT
In the following article we have presented the issues related to the “white list” of VAT payers and the split payment mechanism. We have highlighted the sanctions imposed on taxpayers who do not comply with the current regulations and present practical problems that taxpayers may encounter. WHITE LIST OF VAT TAXPAYERS The list of VAT payers (hereinafter: the white list) became effective as of 1 September 2019, however, the tax obli gations related thereto appeared in our tax system on 1 January 2020. According to the explanatory memorandum to the bill, the white list was primarily intended to further tighten the VAT system and reduce the risk of accidental persons participating in carousel fraud. The list is maintained in an electronic form by the Head of the National Tax Adminis tration and made available in the Public Information Bulletin. It is also available on the Central Registration and Informa tion on Business website. The list includes only business settlement accounts.
be met for such an obligation to exist. Firstly, the transaction must be carried out between active VAT payers. Secondly, the value of the transaction must be at least PLN 15,000 – the payment related to a lower value transaction may be made to any account specified by the counterparty.
Therefore, it is of utmost importance for the purchaser of goods or services to verify that the contractor’s account is on the list and to transfer the money to that account. Even in situations where the seller provides the buyer with an account to which payment should be made but which is not on the white list, the buyer will be subject to sanctions.
FULL VERSION OF THIS ARTICLE IS AVAILABLE ONLY IN PAPER EDITION OF OUTSOURCING&MORE MAGAZINEOR ON THE PRO PROGRESSIO WEBSITE. SANCTIONS
The problems for taxpayers begin when money is transferred to an account other than one included on the list. In such a situation, the purchaser loses the right to include the paid amount as tax-de ductible expense and to deduct input VAT from output VAT. In addition, they will be jointly and severally liable for any sell PREMISES er’s VAT arrears related to the transaction. However, not every transactions requires Thus, the sanctions, given that they apply payments to be effectuated to the listed to transactions over PLN 15,000, may bank accounts. Two conditions must prove extremely severe for entrepreneurs.
26
HOW TO AVOID SANCTIONS
Sanctions can be avoided by reporting to tax authorities, within 3 days from the transfer date, that payment for the purchase of goods or services was made to a bank account which is absent from the white list. However, even in this case the Ministry of Finance has not made the task easier for buyers – the notifi cation should be sent to the tax office competent for the seller, which may not always be possible to determine.
Outsourcing&More | March–April 2020
