As far as VAT in Poland is concerned there is a number that is absolutely worth keeping in mind, which is 25. For the purposes of the VAT tax, 25th day of the following month is the date by which:
- Monthly VAT (JPK_V7M) is sent to the tax office and VAT paid,
- Quarterly VAT (JPK_V7K) is sent to the tax office and VAT paid, with the registration part for each month of the quarter submitted by the 25th of the following month and declaration for whole quarter submitted along with registration part for the third month,
- Recapitulative statement VAT-UE is submitted.
The exceptions to this are the VAT OSS and IOSS procedures, which are settled by the last day of the month following the reporting period.
Monthly or quarterly?
There are two options as far as paying VAT tax is concerned, first being the standard monthly settlement and the second, more conditional quarterly VAT settlement. If you are interested in quarterly settlement, there are two ways to acquire that privilege. First one is to choose cash accounting scheme, which enforces a mandatory quarterly settlement. Second one is being one of:
- Small taxpayer
- Taxpayer under flat tax from company’s income, if value of sales (with tax included) in the previous year has not exceeded equivalent of 4.000.000,00 EUR in PLN. For the purpose of calculation used is the exchange rate from 1st of October of the previous year and value is rounded to the thousand PLN.
Being small taxpayer requires fulfilling certain conditions, however becoming one means that this status will not be lost until end of the year, which differs from cash accounting scheme. When using said scheme, taxpayer who went beyond the limitations will lose the qualifications to apply cash accounting scheme, in case of small taxpayer status it can be lost only on the day of 1st January of next year.
To be recognized as the small taxpayer you must be:
- Taxpayer whose value of sales (with tax included) has not exceeded equivalent of 1.200.000,00 EUR in PLN in the previous year.
- Taxpayer running a business involving investment funds, managing alternative investment funds, brokerage, being agent, contractor or another kind of individual providing services of similar kind with exception of consignment. Value of commission or other kind of renumeration (with tax included) for the provided services in the previous year must not exceed equivalent of 45.000,00 EUR in PLN.
Quarterly settlement – not for you?
The previously stated conditions are not all restrictions placed on quarterly settlement, you are not qualified if:
- You are an active VAT taxpayer, during first 12 months from the month of registration
- In the current or previous four quarters delivered goods listed in annex 15 to the Act, unless total value with tax excluded did not exceed 50.000,00 PLN in any month
- In the current quarter imported goods on rules stated in art. 33a (1) – simplified procedure.
- In the current quarter did not provide an option to use cashless payment method in any month during which economic activity took place.
Additionally, it is possible to be deprived of the privilege of quarterly settlement, if certain conditions are fulfilled. Circumstances of such occurrence and return to the monthly settlement are described in art. 99 of the Act on VAT. For any entity interested in quarterly settlement it is worth the time to familiarize oneself with the regulations, as to not be surprised by the sudden requirement to return to the monthly settlement. Untimely occurrence of such event and inappropriate response to it might result in costly fines.
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