Letters of documents and transactions in JPK_V7M/JPK_V7K

New Version of File JPK_VAT, which the Ministry of Finance moved from 1 July to 1 October 2020 1 , includes the declaration part and the registration part. In the registration part, the legislator imposed an obligation to include an additional indication for the selected transactions or certain types of documents.

The fields in the XML file for these markings are optional, meaning that they need to be completed only if they occur, otherwise they are left empty.

Fields shall be completed for the entire document by marking ‘1” in each field corresponding to the symbols SW, EE, TP, TT_WNT, TT_D, MR_T, MR_UZ, I_42, I_63, B_SPV, B_SPV Supply, B_MPV_PROWIZJA, MPP in case of a given procedure in a registered document, without distinguishing the individual values, the tax amounts.

The problems signaled by taxpayers concern the need to use some of the above indications.

1. Letters of selected transactions related to the settlement of the tax due

Regulation of the Minister of Finance, Investment and Development 15 October 2019 on the detailed scope of the data contained in the tax returns and in the records of the goods and services tax 2 (Further: Regulation JPK_VAT) specify the specific scope of the data contained in the tax returns in question under Article 99(1-3) Act on tax on goods and services with 11 March 2004 3 (Next: the VAT Act) and the records in question under Article 109(3), sent as specified in the rules issued under Article 193a(3) Act on 29 August 1997 - Tax Ordinance 4 ((c) – i.e.

in file form JPK_V7M for taxable persons settling during monthly settlement periods, or JPK_V7K for taxpayers accounting on a quarterly basis.

Due to the fact that regardless of the time limit for the submission of the declaration, the registration part should be sent monthly, for the purposes of this publication, the working and commonly used term shall be used for the identification of both types of files. JPK_VAT.

As per content section 10 section 4 Regulation JPK_VAT identification part JPK_VAT is intended in some cases to contain additional, following lettering.

1. 1. Designation ‘SW’ means in the case of delivery by mail order from the territory of the country

Shipping sales from national territory (hereinafter SW) are defined under Article 2(23) the VAT Act This is the supply of goods moved by or for the taxable person from the territory of a country other than the territory of a country, i.e. the same as for the intra-Community supply of goods (hereinafter: WDT). The difference is to determine the recipient of this supply. In the case of dispatch sales from the territory of the country, the purchaser is an entity which is not obliged to account for intra-Community acquisitions, i.e.: a value added tax taxable person or a legal person other than a value added tax taxable person who is not obliged to account for intra-Community acquisitions of goods (e.g. a exempt taxable person when the value of the acquisition does not exceed the threshold laid down) or any other non-value added tax entity (e.g. a natural person who does not engage in business – the consumer). In the case of the supply of goods dispatched or transported from the territory of a country to the territory of another Member State, the situation is nil – such transaction will be eligible as a WDT or as an SW. Important for information and reporting obligations, in both cases there is an order to issue an invoice. According to the content Article 106b(1)(2-3) the VAT Act, The taxable person shall issue an invoice documenting:

• 1) the sale and supply of goods and services in question under Article 106a(2), to another tax payer, value added tax or tax of a similar nature or to a non-taxable legal person (i.e. professional turnover, including WDT, cars);
• 2) dispatch sales from the territory of the country and dispatch sales in the territory of the country to a non-designated entity Under point 1;
• 3) intra-Community supply of goods to an entity other than the designated Under point 1; (in practice, this concerns the WDT of the new means of transport;

1. receipt by him of all or part of the payment before the operations in question Under points 1 and 2, except where the payment relates to the intra-Community supply of goods or operations for which the tax obligation arises in accordance with Article 19a(5)(4).

The specified data from such invoice will have to be entered in the registration section JPK_VAT.

Where the invoice documents dispatch sales from the territory of the country for which the place of supply is provided, in accordance with Article 23 the VAT Act, will be the territory of the country, the designation of the SW should be inserted.

At this point, it is worth to return to the substantial changes in the rules governing the place of benefit and in general, the way in which the SW should apply from 1 January 2021 in connection with the obligation to implement the EU Council Directive Directive 2017/2455 as amended by EU Council Directive No.

Directive 2019/1995, amending Directive No Regulation (EU) 112/2006 on the common system of value added tax (hereinafter: Directive Regulation (EU) 112/2006 5 ).

Amendments to the Directive Regulation (EU) 112/2006 liquidate the dispatch sales institution by introducing a new system of sales settlement for consumers – the so-called VAT-OSS system.

The concept of ‘shipping sales from the territory of the country’ is to be replaced by ‘intra-Community distance sales’. It is therefore expected that in the next version JPK_VAT it is likely to be amended or the requirement to identify transactions with an SW designation will be lifted.

1. 2. Designation ‘EE’ means the provision of telecommunications, broadcasting and electronic services

This provision refers to the provision of telecommunications, broadcasting and electronic services (Article 28k the VAT Act) to non-taxable entities for which the place of the benefit, in principle, is the place where they are established, their permanent residence or their usual residence. In order to settle such services, taxpayers are obliged to apply a special procedure – the so-called MOSS procedure, regulated under Article 103a-103d the VAT Act From 1 January 2019 taxpayers need not apply the above procedure – the place of the benefit is determined according to the content Article 28c the VAT Act – where the following cumulative conditions are met:

• 1) the provider has a place of business and, in the absence of such place of residence, a permanent place of residence or normal place of residence, only within the territory one the Member State;
• 2) services in question Under section 1, are supplied to non-taxable persons established, domiciled or habitually resident in the territory of a Member State other than the territory of the Member State concerned Under point 1;

1. the total value of the services in question Under section 1, provided to the entities concerned Under point 2, less the amount of tax, it did not exceed the amount during the tax year or in the previous tax year 10,000 EUR or its equivalent in the national currency of the Member State concerned Under point 1, where, in the case of a service provider established in economic activity, and in the absence of such establishment, the permanent residence or normal residence, only in the territory of the country expressed in PLN the equivalent amount in euro is 42,000 PLN.

The obligation to identify transactions with an EE marking is information that allows a fiscal analysis of the occurrence of the taxable person, given at least the amount of such sales, of the obligation to apply the MOSS procedure. The purpose of this requirement is to verify whether the amount in question under Article 28k(2) the VAT Act has been crossed.

1. 3. Indication ‘TP’ — existing links between the buyer and the supplier of the goods or services (Article 32(2)(1) the VAT Act)

From 1 January 2019 In the VAT Act there is a new extended definition of related parties which refers to the definition of related entities contained in the Income Tax Act. Relationships are defined as links:

• 1) as defined Article 23m(1)(5) Act on 26 July 1991 on personal income tax 6 (Further: u.p.d.o.f.) and Article 11a(1)(5) Act on 15 February 1992 on corporate income tax 7 (Next: the Corporate Income Tax Act);
• 2) the employment relationship;
• 3) resulting from the adoption.

The provision does not specify whether the designation TP applies only in the case of the supply of goods and services (more precise sales within the meaning of Article 2(22) the VAT Act, and the supply of goods and services in question under Article 106a(2)), or also in the case of the acquisition of goods and services under the intra-Community acquisition of goods (WNT), the import of services (Article 17(1)(4) the VAT Act) or the supply of goods for which the taxable person is the purchaser (Article 17(1)(5) the VAT Act), which transactions also generate a tax clearance obligation.

It should be borne in mind that the provision section 10 section 4 Regulation JPK_VAT is one from editorial units section 10, which sets out the data requirements to be included in the records for the correct settlement of the tax due.

Doubts can exacerbate the fact that one from the indications required by the provisions section 10 section 4 Regulation JPK_VAT – „TT_WNT’ concerns the identification of acquisition transactions.

Ministry of Finance in the information brochure 8 reported that GTU markings (section 10 section 3 Regulation JPK_VAT – the indication of the supply of goods and the provision of services) should not be applied to the purchase transaction resulting in the emergence of tax due (e.g. WNT, import of services).

However, in the explanations of the tax, there is no such analogy as to apply to other letter marks when the tax due is generated, but the transaction concerns the purchase. In the author's opinion, the interpretation of the provisions shows that the TP designation applies to all documents recorded in the records concerning transactions with a related party generating the tax due.

1. 4. The indication ‘TT_WNT’ in the case of intra-Community acquisition of goods by second in the order of the VAT taxable person in the context of a simplified tripartite transaction (Chapter XII, Chapter 8 the VAT Act)
2. 5. Designation ‘TT_D’ in the case of the supply of goods outside the territory of the country by second in the order of the VAT taxable person in the context of a simplified tripartite transaction (Chapter XII, Chapter 8 the VAT Act)

Both above indications refer to situations where second in the order of the entity in a tripartite transaction in the simplified procedure is the national VAT taxable person. An intra-Community tripartite transaction is a type of chain transaction.

Settlement of individual transactions (deliveries and acquisitions) in tripartite transactions in accordance with general rules Articles 22(2-4) and 25(1) the VAT Act would mean that the taxable person who is the intermediary (delivers and acquires) would have to register in the country of completion of the shipment and transport and settlement of intra-Community acquisition and domestic supply in the country of destination.

However, the provisions provide for simplification in this area.

The provisions concerning the so-called simplified intra-Community tripartite, regulated procedure under Article 135-138 the VAT Act The Polish taxpayer being “second in order’ in the transaction chain benefits from simplification, which means in practice showing in the WNT declaration without tax [currently item 23 for VAT-7(20)] and deliveries outside the country [currently] item 11 for VAT-7(20).

In order to apply this simplification, it is necessary to comply with a number of formal conditions, including the issue of an invoice with an appropriate content (Article 136(1) the VAT Act), demonstration of acquisition transactions from first (WNT) and delivery to the last entity in order (WDT) in the summary information (with the designation applied – Article 100(1)(3) the VAT Act), denotation in the declaration that the taxable person has carried out the activities in question under Article 136 the VAT Act [currently square at item 65 declarations VAT-7 (20)].

The corresponding information is to be used to identify transactions carried out in an intra-Community tripartite transaction – TT_WNT and TT_D, in order to allow full control of the regularity of the simplification applied.

1. 6. The term ‘MR_T’ in the case of the provision of tourism services taxed on a margin basis (according to Article 119 the VAT Act)
2. 7. Designation ‘MR_UZ’ means in the case of the supply of second-hand goods, works of art, collectors’ items and antiques, taxed on a margin basis (according to Article 120 the VAT Act)

The tax base for the operation of tourism services is the amount of the margin, less the amount of tax due.

The margin is the difference between the amount to be paid by the purchaser of the service and the actual costs incurred by the taxable person for the purchase of goods and services from other taxable persons for the direct benefit of the tourist; services for the direct benefit of the tourist are those which are part of the tourism service provided, and in particular transport, accommodation, food, insurance (Article 119(2) the VAT Act).

Similarly, in the case of a taxable person supplying second-hand goods, works of art, collectors' items or antiques previously acquired by that taxable person in the course of his business, for the purpose of resale, the taxable amount is the mark-up of the difference between the amount of sales and the amount of acquisition, less the amount of tax (Article 120 the VAT Act).

In both cases, apart from the underlying transaction data, the individual tax bases should be shown in the sales fields at the appropriate VAT rates, i.e.: Margins minus due tax (including negative margins) and premium payable on individual margins (at negative margin the tax is "0.00”), with the designation MR_T or MR_UZ respectively.

1. 8. Designation ‘I_42” – in the case of intra-Community supply of goods following the importation of those goods under the customs procedure 42 (import)
2. 9. Designation ‘I_63” – in the case of intra-Community supply of goods following the importation of those goods under the customs procedure 63 (re-import)

In accordance with the list of customs codes 9 : „Procedure 42 constitutes a marketing authorisation with the simultaneous placing on the domestic market of goods which are exempt from VAT in the case of supplies to another Member State (import from the country third directly following the intra-Community supply)’.

Import procedure 42 is intended to place the goods on the market in the Union customs territory in such a way that the destination of the goods is another Member State. In accordance with the rules, this allows VAT exemption for imports of these goods.

Movement of goods from one Member State to second implies an obligation to settle intra-Community supply of goods (FTT) (Article 9 the VAT Act) or non-transaction (Article 11 the VAT Act). In conclusion, in the case of a procedure 42 VAT exemption for import transactions and taxation follows the WDT.

Designation I_42 relates to intra-Community supply of goods (WDT) and not to import itself.

Import procedure resulting from Article 63 Customs Regulation 10 means re-importation from outside the EU and release for free circulation in the Union customs territory and movement to a Member State other than the importing country.

When these conditions are met under Article 143(2) Directive 2006/112 and, where applicable, the conditions listed under Article 17(1) point (b) Directive 2008/118 to 16 December 2008 11 VAT exemptions shall be granted and, where appropriate, suspension of excise duties, as there is an intra-Community supply or movement of goods to another Member State upon reimportation.

In that case, VAT and, where applicable, excise duty shall be payable in the Member State of final destination. Similar to the procedure 42, the application of this procedure means the exemption from VAT of import transactions, and taxation follows the WDT.

Designation I_63 relates to intra-Community supply of goods (WDT) and not to import itself.

1. 10. Designation ‘B_SPV’ in case of transfer of the voucher one a purpose, effected by a taxable person acting in his own name, taxed in accordance with Article 8a(1) the VAT Act
2. 11. Designation ‘B_SPV_DOSTAWA’ in the case of the supply of goods and services to which the voucher relates one destination to the taxable person who issued the voucher in accordance with Article 8a(4) the VAT Act
3. 12. The term ‘B_MPV_PROWIZJA’ in the case of the provision of brokering services and other services relating to the transfer of a multi-purpose voucher, taxed in accordance with Article 8b(2) the VAT Act

Transfer of the voucher one the purpose (issue and any transfer of the SPV) of the taxable person acting on his own behalf shall be considered to be the supply of the goods or services to which the voucher relates and shall therefore give rise to the obligation to settle the tax due and to properly document the transaction (in fact or receipt).

For a voucher one destination of the actual transfer of goods or the actual provision of services in return for the voucher one the destinations accepted by the supplier or service provider as remuneration or part of remuneration shall not be considered as an independent transaction in the part where the remuneration was a voucher.

The actual supply of goods/services made in return for the SPV voucher to the entity presenting the voucher for execution shall not be separately recorded. This transaction is not considered to be independent in the part where the remuneration was a voucher (the supply of goods or services is taxed at the time of transfer of the SPV).

The lack of actual supply of goods/services is a potential area of VAT abuse.

Description of the transfer of the voucher one The B_SPV symbol is relevant to the tax because it allows the seller to verify the correct settlement of the tax due and to verify, in principle, the right to deduct from the intermediary the SPV vouchers and the final recipients (if they were VAT taxable).

Where the supplier of goods or services is not a taxable person who has issued a voucher on his own behalf one the destination, it is considered that the supplier or service provider has supplied the goods or services to which the voucher relates respectively to the taxable person who issued the voucher (Article 8a(4) the VAT Act).

If transfer of the voucher one the taxable person acting on behalf of another taxable person is deemed to have supplied the goods or services to which the voucher relates by the taxable person whose name the taxable person operates (Article 8a(2) the VAT Act).

The taxed transaction takes place already at the time of issue of the voucher, and not at the time when it is realised by the entity that ultimately benefits (e.g. not at the time of use of the voucher by the employee, but at the time of issue of the voucher by the employer).

A taxable person who effectively supplies goods and services (the obligation arises at the time of issue of the voucher – Article 19a(1a) the VAT Act) means the transaction with the B_SPV DOSEPA symbol (issuing the voucher means its transaction with the B_SPV symbol).

The introduction of a separate B_SPV DOSEPA designation allows the tax to verify which goods or services were actually acquired in exchange for the SPV voucher. This designation, combined with the trade marks of the transfer of the SPV, allows verification in JPK_VAT full turnover of SPV vouchers in the distribution chain.

In the case of multi-purpose voucher transactions (MPVs), VAT becomes chargeable only when the goods or services concerned are supplied (Article 8b(1) the VAT Act). No transfer of MPV certificates preceding the supply of goods or services shall be taxable. As a result, apart from the brokering service of MPV vouchers, the entire chain of MPV voucher trading is not reported in any way.

The obligation to mark transactions with the B_MPV_PROWIZJA shall apply where the transfer of a voucher of different uses is carried out by a taxable person other than the taxable taxable taxable person (sale or transfer of the voucher is carried out by a different entity than the manufacturer/seller of the goods).

Tax tax (the obligation to mark a transaction with the symbol B_MPV_PROWIZJA) is subject to brokering services and other services that can be identified, such as distribution or promotion services, concerning this voucher. For MPV vouchers, there are situations where they are not used.

The monitoring of brokering services transactions in MPV vouchers allows the fiscal authorities to determine the path of the MPV voucher between the issuer and the final recipient of the voucher.

1. 13. Designation ‘MPP’ — for a transaction subject to the obligation to use the split payment mechanism

When making payment for purchased goods or services listed In Annex 15 to the VAT Act, evidenced by an invoice in which the total amount of the claim represents an amount exceeding 15,000 PLN gross, taxpayers are obliged to apply the split payment mechanism (Article 108a(1a) the VAT Act). On invoice with value above 15,000 PLN gross, including the supply of goods or services in question In Annex 15 to the Act, the indication ‘sharing mechanism’ should be added (Article 106e(1)(18a) the VAT Act).

Identification of MPP in the registration part JPK_VAT must be applied to an invoice with a gross amount higher than 15,000 PLN, which documents the supply of goods or services listed In Annex 15 to the Act, even if the invoice does not contain the use of an indication (‘the mechanism of the split payment’). Similarly, even if the taxable person has included on the invoice the designation ‘distributed payment mechanism’ where it is not mandatory to use this mechanism, such an invoice should not be included in JPK_VAT be marked with the MPP symbol.

2. Letters of selected transactions related to the settlement of input tax

As per content section 11 section 2 Start JPK_VAT identification part JPK_VAT in the data section for the correct settlement of input tax, it is in some cases to include the following additional letter marks.

1. 1. Designation ‘IMP’ — for input tax on imports of goods, including imports of goods accounted for in accordance with Article 33a the VAT Act

Where the goods are subject to simplification within the territory of the country concerned under Article 166 and Article 182 the Union Customs Code, the implementation of which is subject to prior authorisation and during which the settlement period is a calendar month, the taxable person may settle the amount of tax due on imports of goods in the tax return for the period during which the tax obligation on imports of those goods arose.

The field shall be marked with the IMP symbol only if the simplified procedure is used, subject to prior authorisation under customs legislation. The amount of tax due for imports of goods in the tax return submitted for the period during which the tax obligation for imports of those goods arose can then be settled.

The tax shown in the declaration then becomes a source of deduction tax (Article 86(2)(2) point (b) the VAT Act).

1. 2 ‘MPP’ — for a transaction subject to the obligation to use the split payment mechanism

The provisions provide that the purchaser of goods or services clearing input tax shall use an appropriate indication for invoices covered by the compulsory split payment mechanism.

Therefore, where the invoice does not contain the indication ‘divided payment mechanism’ and is subject to the obligation to use it (sale includes the goods or services listed above) In Annex 15, and the gross amount of the invoice exceeds 15,000 PLN), the addressee of the invoice, which shall include it in the registration part relating to the settlement of input tax, shall be obliged to designate it with the MPP symbol.

Similarly, if the invoice with the sign ‘shared payment mechanism’ relates to goods or services outside Annex 15, the buyer does not mean its MPP symbol in JPK_VAT, regardless of the amount on the invoice.

The same is true of the taxable person when the invoice documents the purchase of goods or services from Annex 15, but the gross amount of the invoice is 15,000 PLN gross and less.

3. Identification of sales evidence

As per content section 10 section 5 Start JPK_VAT identification part JPK_VAT the following indications of proof of sale are to be included in the data section for the correct settlement of the tax due:

1. 1. Designation ‘RO’ — for an internal summary document containing sales from register offices

The RO designation refers to the register of cash reports (day or month). This designation therefore applies to taxable persons selling to natural persons not engaged in economic activities or to flat-rate farmers (so-called consumer turnover) who do not benefit from the exemption from the obligation to use a register office.

3.2. The ‘WEW’ designation for the internal document

The ECA designation concerns the registration of documents (other than invoices, documenting the sale or supply of the goods and services in question) under Article 106a(2) the VAT Act) the basis for the tax settlement. From 1 January 2014 the concept of internal invoice has disappeared from the nomenclature of the Act (repealed Article 106(7)), which was an internal document (to the end 2012 mandatory) for settlement:

- activities listed Under Articles 7(2) and 8(2),

• the so-called cross-border reverse charge, i.e.: intra-Community acquisition of goods (WNT), supply of goods for which the taxable person is their purchaser (Article 17(1)(5) the VAT Act), and the provision of services for which the taxable person is their recipient (import of services – Article 17(1)(4) the VAT Act),
• documenting the amounts of grants, subsidies and other similar subsidies reimbursed.

From 1 January 2014 the above tax generating events may be documented in any way, depending primarily on the capabilities of accounting software. The legislator has left taxpayers free to do so, provided that the necessary elements resulting from the provisions Article 109 the VAT Act were included in the records and summary information.

For example, the import of services may be documented by a source document, i.e. an invoice received from a foreign counterparty (with the adoption of the original numbering or with the addition of an additional reference number), on the basis of which the taxable person establishes the taxable amount and the amount of the tax.

However, documentation may be based on an internal accounting document issued by the taxable person, i.e. a document corresponding to the former internal invoice. It is important to apply the tax settlement mechanism correctly – correctly identify the moment of the tax obligation, the amount of tax, the correct conversion rate[12].

In the author's opinion, the freedom to document the above operations, and resulting from Article 20(2) Act on 29 September 1994 on accounting 13 ((i.e. the distribution of accounting evidence on which the accounts are recorded into:

• 1) External foreign — received from counterparties;
• 2) external own – transmitted in the original to counterparties;
• 3) internal – for intra-unit operations,
• – does not justify the adoption of the thesis on the possibility to differentiate the situation of taxpayers who document and record in different ways cases of so-called cross-border reverse charge (including WNT, import of services).

For unacceptable, from the point of view of interpretation of the rules (lege non distinguente principle) 14 ) it should be considered that taxable persons documenting the above transactions with an internal document (from the perspective of the Accounting Act) would be obliged to use the ECA designation, while taxable persons accepting the invoice received from a counterparty whose data must be processed before registration (although the conversion of the amounts into PLN) would be exempt from this obligation. Both situations relate to the same type of transaction.

In conclusion, until the legislator has made a clear statement on this issue, it should be assumed that the designation of the ECA should be applied to the documents underlying the settlement of the following transactions:

• intra-Community acquisition of goods (WNT – both transactional from Article 9, and non-transaction with Article 11 the VAT Act), the supply of goods for which the taxable person is the purchaser (Article 17(1)(5) the VAT Act), and the provision of services for which the taxable person is their recipient (import of services – Article 17(1)(4) the VAT Act),
• of Articles 7(2) and 8(2) the VAT Act (free of charge transfer of goods or free provision of services),
• so called out-of-account sales, i.e. the supply of goods or services not documented by invoices and not subject to the obligation to keep records of sales by means of a fiscal cash register, as shown in the internal document at aggregate amounts broken down by tax rate and exempt sales.

All of these events generate a tax settlement obligation. Historical considerations also support this interpretation. This interpretation is reinforced by the requirement to signify the ECW symbol also for billing documents relating to input tax (see further) not invoiced, i.e. where the source of the input tax is the tax due in the declaration, and this is the case, among other things, in the settlement of WNT or in the import of services.

1. 3. Designation ‘FP’ for the invoice in question under Article 109(3d) the VAT Act

The FP designation refers to invoices issued to the receipt. In view of the entry into force of the rules on showing sales in new JPK_VAT, The legislator simplified the way the invoice for receipts was recorded. The invoices in question under Article 106h(1-3) (issued in receipts, e.g.

cars), shall be recorded in the records in question Under section 3 (so-called sales records, e.g. cars) during the settlement period during which they were issued. These invoices do not increase the sales value and the tax due for the period during which they were included in that register (Article 109(3d) the VAT Act).

After the amendment, if an invoice issued for the receipt is needed, it is not necessary to correct JPK_VAT the tax liability period.

Author's own development

4. Identification of purchase evidence

As per content section 11 section 8 Start JPK_VAT, identification part JPK_VAT the following indications of proof of sale are to be included in the data section for the correct settlement of input tax.

1. 1. Designation ‘VAT_RR’ — for the VAT invoice referred to under Article 116 the VAT Act

A taxable person registered as an active VAT taxable person who acquires agricultural products from a flat-rate farmer shall issue in two copies of the invoice documenting the purchase of those products. The invoiced amount shall cover the value of the agricultural products purchased and the amount of the flat-rate refund.

The amount of flat-rate tax refund (payed to the farmer) reduces the value of input tax (Article 86(2)(3) the VAT Act).

An invoice issued by a taxable person purchasing agricultural products from a flat-rate farmer containing elements from Article 116 the VAT Act, recognised by him in the registration part JPK_VAT on the purchasing side [PurchayWiesz] should have VAT_RR.

1. 2. The designation ‘WEW’ — for the internal document underlying the clearance of input tax

The designation of the ECA concerns all documents underlying the settlement (including corrections) of input tax which are not invoices. In view of the interpretation of the provisions presented above concerning the use of the ECA marking for evidence of sale, it should be considered, by analogy, that the designation in question will be used for inclusion in the accounts of the underlying documents:

• intra-Community acquisition of goods (WNT – both transactional from Article 9, and non-transaction with Article 11 the VAT Act), the supply of goods for which the taxable person is the purchaser (Article 17(1)(5) the VAT Act) and the provision of services for which the taxable person is their recipient (import of services – Article 17(1)(4) the VAT Act) – i.e. all cases where the source of the input tax is the tax due in the declaration, and not the document received from the counterparty (subject to the WNT, resulting from Article 86(10b)(2) point (a) the VAT Act);
• VAT corrections: including adjustments made on the basis of Article 91, Article 86(2a), Article 90a, Article 90b the VAT Act

1. 3. Designation ‘MK’ means an invoice issued by a taxable person who is a supplier or a service provider who has chosen a cash settlement method, determined by under Article 21 the VAT Act

The MK marking is used in the case of registration part JPK_VAT (Article 21). Reason for special marking of these invoices in JPK_VAT is the way these invoices are settled on the buyer side.

The right to reduce the amount of tax due by the amount of input tax for goods and services purchased by a small taxable person during the period of application of the cash accounting method arises no earlier than in the settlement for the period during which the taxable person paid for those goods and services (Article 86(10e) the VAT Act).

Author's own development

5. Conclusion

Despite a relatively long preparatory period to implement the new version JPK_VAT (The dates of entry into force of these provisions have been extended several times) the application of certain provisions raises interpretation doubts.

It is to be hoped that a further shift of the entry into force of these regulations to 1 October 2020 will be sufficient to remove them.

Generally, how to develop a new version JPK_VAT – the fact that there has been an act of law which is generally in force, specifying the elements of this logical structure, should be considered as progress and return to relevant legislative practices.

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