In 2017 legislation favouring tax exemptions from the VAT register, including taxpayers who have suspended their activities for more than six months, has entered into force. Finally 2017 the status of the active taxpayer has lost more than 110,000 taxpayers. Until the end of May 2018 almost removed from the VAT register 160,000 companies, which is ok. 10% all Polish VAT taxable persons.
The reasons for the deletion were not uniform, among others, foreign companies that did not carry out any tax activity in Poland in the long term. The Ministry of Finance indicates that among the excluded are companies that did not submit a VAT return or issued so-called blank invoices documenting fictitious transactions.
Fiscus also removes from the register those companies he cannot contact or considers non-existent. In such a situation, the tax office does not need to inform about the deletion.
However, there have been cases where the company was removed from the register only because the officials did not find the entrepreneur at the address of the seat. The introduction of the obligation to submit a JPK file also facilitated the tax collection of data on companies and transactions carried out.
It is worth pointing out that from 1 October 2018 in the JPK format, financial statements will also be sent.
The company removed from the register, despite its business activity, becomes unreliable to counterparties. The VAT deduction from the invoice issued by the company, which the tax has removed from the database, is also a problem.
Draft Act amending the Act on the tax on goods and services and certain other acts of 13 February 2018, for public consultation, it provides for the possibility of removing VAT or EU VAT from the register when they submit ‘zero’ declarations in the long term.
The proposed amendments also indicate that the possibility of restoring the registered taxable person after the expiry of the two months from the date of removal from the register where no VAT return has been lodged.
The amendments also exclude the possibility of restoring the registration of taxable persons excluded from the VAT register due to the fact that the taxpayer has information indicating that the taxpayer is carrying out activities with the intention of using the activities of banks or SDOs for purposes related to tax fraud.
In addition, companies should update the information given to the tax on the address, telephone number and e-mail contact.
It is important that a company wishing to be reinstated in the VAT register can prove by any means that it is active and thus re-insert its data in the VAT register.
If you would like more information about this, please contact us.
Author:
Aurelia Ulita
Younger consultant in the tax advisory department. From 2017 associated with Russell Bedford Poland. Graduated from the Faculty of Law and Administration of Maria Curie-Skłodowska University in Lublin. She gained her professional experience in renowned Lublin tax law firms. Its professional interests are tax law and, in particular, income taxes.