POP – an early warning system of the Polish National Tax Administration (KAS) to protect honest taxpayers

In a few weeks Polish National Tax Administration (KAS) will implement a new solution – POP (Program Ostrzegania Przedsiębiorców). The aim of the program is to protect the honest entrepreneurs against unconscious participation in a VAT carousel fraud. The system will be based on direct communication between the administration and entrepreneurs. The taxpayers will receive warning letters from KAS about the risk connected with transactions with a given client. Such a warning will be sent after thorough analysis of the data available to KAS. Thanks to this the taxpayers will have the possibility to take appropriate actions to verify the reliability of their contractors. It will be recommended to use split payment mechanism in such cases.

This solution is recommended by the European Commission and is used in other European Union countries.