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White list of taxpayers – tax deductible costs and foreign supplier’s bill not reported to the list of VAT taxpayers

2019-11-27

By making payments for the delivery of goods or services to a bank account indicated by the supplier, which has not been reported to the list referred to in Art. 96b of the VAT Act, as the supplier of goods and services is not a VAT payer in the territory of the Republic of Poland, the expenditure to which such payment relates  will be included in tax deductible costs from January 1, 2020 on - stated the Head of the National Revenue Information Service in a private ruling issued on November 7, 2019.

It should be clarified that the list referred to in Art. 96b of VAT Act is a white list of VAT taxpayers introduced on September 1, 2019, which may be used to verify and determine the current status of a taxpayer based on the information included in an electronic database. In reality, it is in the taxpayers’ interest to become familiar with the list even now, because as of the beginning of 2020 settling transaction exceeding the amount of PLN 15 000 or its equivalent, to an account other that enclosed in the list of entities, when a contractor is an active VAT taxpayer will result in sanctions. To wit, as the amended provision of Art. 15d (1) of CIT Act – taxpayers will not be allowed to include in the tax deductible costs expenses in the part where the payment was made into an account not included in the white list.

What is important, this situation concerns payments for the delivery of goods or provision of services by entities registered as active VAT taxpayer in the territory of the Republic of Poland. Therefore, in the case of foreign suppliers, who  do not perform taxable activities on the territory of the Republic of Poland or are not subject to the registration requirement, the sanctions provided for in Art. 15d CIT will not apply. This is due to the lack of an obligation to report a bank account to the list.

However, what if we make such a payment to a contractor registered in the Republic of Poland and thus violate the law?

In accordance with the new regulations, if we notify the head of the tax office suitable for the invoice issuer within three days of the transfer order date – we will not lose the right to include the expenses as tax deductible costs. Thus, it can be seen that in the next year taxpayers will have to be particularly cautions when making payments to their business partners, as any error will involve additional responsibilities or sanctions.

 

Natalia Szymocha, Tax Consultant, ATA Tax Sp. z o.o.

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