Recognition of receipt invoices in a single control file - "Conscription law" and provisions of the Regulation JPK_V7

Reporting institution using the Single Control File functions from 1 July 2016. Since the beginning of its application in the doctrine, attention has been paid to its flaw, or even to its incompatibility with the Constitution of Poland or EU law[1].

The main allegation, also in the author's opinion, was the lack of regulation at the level of the sources of law commonly in force, defining the rights and obligations of the taxpayer, in particular as to how to implement this new information obligation to send certain information in the form indicated.

The Ministry of Finance was based on information booklets explaining to taxpayers what data and how they should be presented in the file JPK_VAT.

The Ministry did not see irregularities in the publication of the logic structures of the JPK not in the normative act, but only in the Bulletin of Public Information, claiming that this was in line with the basic law and did not foresee any legislative work in this respect.[2]. And here's the sudden twist.

By reforming the information obligations using the Single Control File, combining – in a large simplification – VAT declarations and records In one file, the legislator decided to add in the bill with 11 March 2004 on tax on goods and services 3 (Next: the VAT Act) the statutory delegation applicable and, consequently, the regulation 4 specifying the details of the data contained in the tax returns and records.

1. Introduction

We therefore finally have provisions which may be the subject of judicial review. It is good that this has happened, because the interpretation of these provisions by representatives of the Ministry of Finance – often anonymously – raises serious concerns.

This is because in the published information brochures or guides, the ministry often explains to taxpayers their rights and obligations. I would like to say – habit is second The nature of man. And unless these explanations give rise to the imposition of additional obligations on taxpayers, taxpayers accept them not to “kick a horse”.

However, where these obligations are imposed without normative grounds and their practical implementation is technically impeded, this raises serious concerns. This publication is a kind of controversy with the views presented in the so-called "contextual law", i.e. in the information brochures and guidebooks published on the ministry pages – the Public Information Bulletin.

2. Regulation analysis

2.1. Receipt invoice — exempt sales

Confronting the content of the regulation JPK_V7 with explanations from representatives of the Ministry of Finance included in information booklets and guides, as one of the most blatant examples of misinterpretation of the provisions, or misunderstanding of the essence or purpose of the application of certain institutions, the obligation to present in the file must be given JPK_V7 invoices issued to fiscal receipts for natural persons not engaged in economic activity, i.e. consumers.

Content section 10 section 1 point 1) Whereas the Regulation must include in the registration part the documents in which the amount of the taxable amount resulting from certain taxable activities must be presented, i.e.:

• (a) the supply of goods and services within the territory of the country exempt,
• (b) the supply of goods and services within the territory of the country at a rate of tax 0%, of which separately for the supply of the goods in question under Article 129 the VAT Act,
• (c) the intra-Community supply of the goods in question under Article 13(1) the VAT Act,
• (d) exports of goods;
• – for which there is an obligation for the taxable person to issue an invoice under the provisions the VAT Act, except for invoices documenting the activities in the records referred to Under points 8 and 9.

The common feature of all these activities is the absence of the amount of tax due.

Although the place of delivery of these activities is the territory of the country, they do not generate tax due (the exemption or rate applies 0%). Thus, they do not generate input tax for the buyer.

It follows from the provision that these events are to be accounted for on the basis of invoices if the taxable person is required to issue them (professional turnover).

For the record, according to content Article 106b(1) the VAT Act, The taxable person shall issue an invoice documenting, inter alia: 1) „the sale and supply of goods and services in question under Article 106a(2), to another taxable person, value added tax or tax of a similar nature or to a non-taxable legal person ...’.

The obligation to issue an invoice therefore occurs in the so-called professional trade where the taxable person is a different trader (the taxable person is any entity that carries on an economic activity 5 ) or a legal person.

In turn, the obligation to issue an invoice does not exist (even when we are dealing with so-called professional turnover) in respect of exempt sales.

As per content Article 106b(2) the VAT Act the taxable person is not obliged to issue an invoice in respect of exempt sales on the basis of Article 43(1), Article 113(1)(9) or provisions issued pursuant to Article 82(3).

The absence of an obligation to issue an invoice in this case does not, of course, preclude the obligation to present in the records and declarations of released sales.

However, the taxpayer may do so on the basis of documents other than the invoice (not necessarily considered as invoices under the implementing rules), including collective (section 10 section 1 point 9) Regulations).

And yes, of the recipe section 10 section 1 point 1) the regulation shows that, in principle, there is an obligation to include JPK_7 invoices issued in the so-called professional trade (documenting activities that do not generate due tax, including those taxed at a rate of 0%), except for invoices documenting the activities in the records referred to Under points 8 and 9.

Content section 10 section 1 point 8 Regulations, in the registration part JPK_V7 the value of sales without tax (net) and the amount of tax due, broken down by tax rate and tax-exempt sales, resulting from the aggregated information from the sales records in question should be included under Article 111(1) the VAT Act This is about sales recorded using register offices.

When carrying out a comprehensive analysis, it follows from the above rules that if the exempted sales were recorded at the fiscal cashier and the statutory requirements for the fiscal receipt were met, an invoice would be issued (e.g.

on request based on content) Article 106b(3)(2) the VAT Act), it is not mandatory to present this invoice in the Single Control File. This is absolutely rational.

Data on exempted sales are included in JPK_V7 – This is important in determining the scope of the right to deduct for certain purchases of goods and services or in applying the so-called deduction ratio. The invoices documenting exempt sales, which do not generate input tax, do not include in JPK_V7 in the ‘Purchase row’ field.

It follows from the provisions that, in the professional trade, non-tax-generated invoices where sales are included in the Single Control File on the basis of another document (monthly or daily report from the fiscal cash register marked ‘RO’) are not included in the JPK.

The rules do not apply to situations where the same exempt sales would concern a natural person who does not have an economic activity, i.e.

one for which there is no obligation for the taxable person to issue an invoice and invoices are issued on demand under the terms of Article 106b(3)(1) the VAT Act, for whom such an invoice would be issued.

There are a number of rational reasons why a natural person who does not have an economic activity has the right to receive an invoice despite the simultaneous obligation to include sales at a fiscal cashier (issue of an invoice on demand based on content) Article 106b(3)(1) the VAT Act).

The invoice identifies the purchaser and may be needed for the enforcement of the rights under the guarantee, registration of the vehicle, application of various types of tax credits (e.g. thermomodernisation). However, it is never used by the consumer to deduct input tax, even if it relates to sales other than exempt sales.

The natural person who does not conduct business does not present this invoice in the JPK.

Despite this, it would seem quite clear that the rules for invoices documenting released sales and issued to receipts, fius representatives in response to one of questions 6 : „Should the taxable person show the invoice issued for the receipt, which documents the sale released to a natural person who does not carry on business or taxable persons in the new records JPK_VAT With a declaration?

Are invoices for such sales to be shown with the ‘FP’ sign? JPK_VAT with a declaration, it is sufficient, in the case of exempt sales recorded at the register office, to enter it in a collective record, with an RO designation.

Whether it is sales to natural persons who are not engaged in business or taxable persons, adding that: ‘However, if such a transaction is documented by an invoice issued to the receipt, such invoice shall be further shown during the period during which it was issued with the FP tag’.

How it relates to content section 10 section 1 point 1) Regulations and terms: ‘except for invoices documenting the activities in the records in question Under points 8 and 9”, Where does the expressis verbis rule provide for the absence of this obligation? And then – where is the provision ordering the JPK to include invoices on consumer-released sales?

2.2. Receipt invoice — taxed sales

Based on the content of the provision section 10 section 1 point 2) The legislator imposed an obligation to present in the JPK the amount of the tax base and the amount of the tax due, resulting from activities subject to taxation and generating the tax due (e.g. the rate of tax due).

23%), for which the taxable person is obliged to issue an invoice. This provision does not include: ‘except for invoices documenting the activities in the records in question Under points 8 and 9”. The intentions of legislators seem obvious.

In the case of invoices generating the tax due to the seller and at the same time the tax charged to the buyer, in professional trade (for which the taxable person is obliged to issue the invoice), even when the sales were recorded in the memory of the fiscal cash register and in the CRS on the basis of the summary document (RO), such invoice should be included in the CRS (with the designation ‘FP’).

This gives the possibility to verify the correctness of the tax settlement with the buyer.

Assuming the rationality of the legislator, the clear rules relating to the situation where there is an obligation to issue an invoice, i.e. to the so-called consumer trade, appear to be incomprehensible further explanations of the tax representatives. It is an obligation to present invoices issued to receipts in the JPK for non-business individuals. Such a consumer does not deduct – he does not send the Single Control File at all.

However, in the advice in response to the question: “How do I put an invoice to the receipt if the buyer is a consumer (a natural person who does not conduct a business)? Should such invoice be shown in a new JPK_VAT the declaration with the designation ‘FP’?

reads: ‘Such invoices should be entered in the register for the period during which they were issued. These invoices do not increase the sales value and tax due during the period during which they were issued. The invoices (with ‘FP’), issued to a natural person, fall within the scope Article 109(3d) the VAT Act”.

In reply, the interpreter quoted a provision that regulates another issue, concerning the time when the invoice issued for the receipt (‘FP’) was included in the JPK of the relevant settlement period.

This provision does not prejudge that invoices issued in receipts should be included in the JPK, the content of which states that if the invoice issued in receipt is included in the JPK, then on an ongoing basis, during the period during which it was issued, thereby eliminating the obligation to apply any adjustments that taxpayers have faced in the past.

As per content Article 109(3d) the VAT Act: „The invoices in question under Article 106h(1-3) (issued for receipts, e.g. cars.) shall be entered in the records referred to Under section 3, 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.’

2.3. Shipping sales from the country – presentation in JPK

Another answer put forward by the Ministry of Finance is even more surprising.

The case concerns a presentation in the JPK of mail order sales from the territory of the country, defined under Article 2(23) the VAT Act, for which the place of taxation is determined on the basis of the content Article 23 the VAT Act The breach of the threshold of turnover set by the Member State to which the goods sold to non-compulsory entities for the settlement of intra-Community acquisitions of goods enter obliges them to register in the country concerned and to settle the tax at the rate applicable to the country of consumption.

For the record, in such a situation the taxpayer is obliged to issue an invoice.

Content Article 106b(1)(2) the VAT Act the taxable person is obliged to issue an invoice documenting dispatch sales from the territory of the country and dispatch sales in the territory of the country to an entity other than the designated Under point 1 (other than the taxable person or the legal person, cars).

In response to the question, ‘In what cases should the SW mark be used?’, the tax corresponds to: ‘The SW designation concerns delivery by delivery from the territory of the country concerned. Under Article 23 the VAT Act, i.e. both taxed in the country and in other EU countries. In spite of the obligation to issue invoices for sales to natural persons not engaged in business activities, it is sufficient to recognise these sales on the basis of a summary document.’

How on the basis of the data provided in the form of the Single Control File does the fiscal want to verify this trading ceiling? Why would it be necessary to identify such invoices with an ‘SW’ if these data are not complete if the sales were included in the fiscal cash register at the same time?

The conclusions of the provision, supported by the purpose for which the JPK institution was established (e.g. automatic data analysis) should be completely different: the need for such an invoice with the designation ‘SW’ and ‘FP’.

3. Summary

There is more to the controversy over the divergence between the content of the rules and the explanations of guidebooks and information booklets edited by the finance departments. Some of these explanations provide for the exemption of taxable persons from certain obligations in the absence of normative grounds.

Where is the absence of an obligation to include letter marks (e.g. ‘TP’) or GTU codes in the case of inclusion of collective documents in the JPK (‘RO’)? Why is it not necessary to designate the GTU code for the free transfer of certain goods (e.g.

alcohol code) GTU-01), considered based on Article 7(2) the VAT Act For the delivery of goods for payment? After all, in this situation there is a supply of goods, namely the transfer of the right to dispose of the goods as the owner.

There is much more controversy, and this analysis is an example of a wishful approach to the content of the regulation and will certainly be a cause for litigation, in particular when the implementation of certain technical solutions will entail additional financial burdens for the taxpayer.

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