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White list of taxpayers

2019-06-18

The President signed on 24 May 2019 an act to amend the Act on Goods and Services and certain other acts, seeking to further tighten the tax system and minimise the risk of unintentional participation in VAT fraud. A key element of the amendment is introduction of the ‘White List of Taxpayers’ on 1 September 2019.

The ‘White List of Taxpayers’ is an electronic record of entities kept by the Head of the KAS (State Revenue Administration) that will consolidate data currently stored in the following databases:

  • of taxpayers denied registration or deleted from the register of active VAT payers, and
  • of taxpayers whose registration as VAT payers has been restored.

In addition to basic information, such as company name, NIP number and REGON number, the list will contain numbers of settlement accounts and personal accounts with a cooperative savings and credit union opened for business purposes. The list will also contain the dates and legal grounds for changes in the taxpayer’s status, i.e. registration, denial of registration, deletion or restoration of registration, as the case may be. The list will be subject to regular updates made every weekday.

Undoubtedly, creating a single database containing all information on VAT taxpayers' statuses will facilitate and accelerate the procedure for their verification allowing at the same time to exercise the due care that is an indispensable condition for being eligible for VAT deduction. It should be emphasised, however, that in introducing the new verification tool, the legislator has imposed new requirements upon taxpayers, failure to comply with which will entail adverse tax implications, both in respect of income taxes and VAT.

What is meant here is the obligation, coming into force on 1 January 2020, to make all B2B transactions whose value exceeds an equivalent of PLN 15,000 payable into settlement accounts included in the list. Making a payment into an account that is not included in the list will deprive a taxpayer of the possibility of recognising the expense in question as a tax deductible cost. Moreover, the taxpayer will be jointly and severally liable together with the services or goods supplier for the latter’s tax arrears, in respect of the VAT proportionally applicable to the supply in question.

One will be capable of escaping the above sanctions by notifying the head of the relevant tax office of the fact of payment into an unlisted settlement account within three days of the date of transfer order. On the other hand, using the split-payment mechanism will insulate one against the VAT sanction.

The changes introduced by the amendment will undoubtedly contribute to making the tax system tighter, but they will also increase taxpayers’ verification duties.  It may turn out necessary to implement internal controlling procedures and adjusting one’s financial and accounting systems to meet the new requirements.

 

Ewa Pyrkosz, Tax Consultant, ATA Tax Sp. z o.o.

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