On 7 July this year the Ministry of Finance started tax consultations regarding further changes in JPK_VAT files.

As stated in the notification on the commenced consultations, the first objective of the consultations is to implement modifications in technical and content-related terms to the existing JPK_VAT scheme, in particular to liquidate redundant data, to modify the file structure on technical and IT level, to add new data that would enable better use of the JPK_VAT scheme both by tax authorities and by taxable persons, e.g. for the purposes of internal auditing whether settlements are correct. It is proposed, among others:

• to add JPK_VAT file correction tags by specifying the purpose of filing (1- original version, 2- first correction, 3- second correction etc.)
• to add a field for the date of sale in a part covering purchases,
• to remove a field with the taxable person’s REGON number,
• to add a separate field for the country where the contracting party’s registered office is located,
• to add a separate field for the prefix of the contracting party’s NIP number,
• to add fields for payment dates and terms, and even transport documents.

The Minister argues that owing to expansion of the JPK_VAT scheme most of verification activities and controls will be made remotely and thus faster, which in the end should significantly streamline the controls of taxable person’s activities, and consequently also speed up the activities necessary for verifying whether the refund of excess VAT is justified.

While further changes in the JPK-VAT scheme are not surprising – they won’t be the first – one may be surprised by the second objective of the consultations. The Minister plans to meet taxable persons’ expectations and minimise their reporting obligations by developing such structure of the JPK_VAT scheme so that the obligation to send JPK_VAT files could replace the obligation to send VAT-7 returns. Of course it requires expanding the JPK_VAT scheme by new categories of data, such as for example the input tax amount carried forward and the amount to carry forward, or how the excess input tax is to be refunded to a taxable person. While this is a long-term objective and requires respective changes in legislation, it should be assessed in a positive way, if implemented, although sending the extended scope of information in JPK_VAT may be connected with certain difficulties for taxable persons.

The consultations will be underway until 7 August 2017.

We want to use this occasion and remind you that as of 1 January 2018 the obligation to send JPK_VAT files will be applicable to all taxable persons.

Barbara Otrzonsek, tax consultant, ATA Finance