POLAND: Penalty for each error in VAT records applicable as of 1 of October 2020

Penalty for each error in VAT records (“JPK”) introduced in Poland

It is worth remembering that as of October 1, 2020, the tax office will be able to impose a fine of PLN 500 for each error in the VAT records.

From October 1, 2020, entrepreneurs will apply new rules for the preparation of VAT records related to the changed structure of JPK V7, covering both the declaration and registration parts. The legislator imposed on VAT taxpayers the obligation to additionally mark certain categories of goods and services in the sent register, including transactions subject to the obligation to use the split payment mechanism (MPP mark) and transactions between related entities (TP mark).

In case of error in VAT records found

In the event that the head of the tax office finds errors in the records that make it impossible to verify the correctness of the transaction, the head of the tax office will first request the taxpayer to correct them, and is obliged to indicate these errors to the taxpayer.

Changes to be made within 14 days

Then, the taxpayer should send the corrected records within 14 days, taking into account the corrections of errors indicated by the tax authority, or submit an explanation that the records sent do not contain the errors referred to in the request.

A fine introduced in the amount of PLN 500

In the event of exceeding the above-mentioned deadline or failure to provide explanations that the sent register does not contain errors, the head of the tax office may impose a fine on the taxpayer in the amount of PLN 500 for each error. The penalty may also be imposed when the taxpayer submits explanations, but in the opinion of the head of the tax office, he does not prove that the records do not contain errors.

The fine will be imposed by way of a decision against which the taxpayer will have the right to appeal, and if the appeal is not granted by the second instance authority, the taxpayer will be able to appeal against the decision to an administrative court.

Considering the highly repressive system adopted by the legislator, it is worth identifying risk areas in the company and providing legal protection. The entrepreneur may, for example, apply for a Binding Rate Information (WIS) to determine whether the sale of a given good is subject to the obligation to apply the split payment mechanism, which should be reflected in the VAT records accordingly.

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LKOS Law Office’s lawyers are available to assist and to clarify any questions you may have regarding the above case or your current business law issues. Please feel free to contact our Specialist Partner Oscari Seppälä in respect to doing business abroad and international trade matters.

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*This article is for general information purposes only and does not constitute a legal advice.