The purpose of this study is to show different deadlines and conditions for the possibility of speeding up VAT reimbursement. The reimbursement of the surplus of the input tax due may take place within the time limit 180, 60, 40, 25 and 15 days, depending on the fulfilment of the criteria in the Goods and Services Tax Act.
Basic term – 60 days
The question of time limit for reimbursement of input tax Article 87 VAT Act. According to section 1 that provision, where the amount of input tax is higher than the amount of input tax due in the accounting period, the taxable person has the right to reduce by that difference the amount of input tax due for subsequent periods or to reimburse the difference to the bank account.
Based on section 2 the above-mentioned article, reimbursement of the difference in tax, occurs within the time limit 60 days from the date of the settlement. This is the basic term.
Time limit 40 days
The tax office is obliged to repay the tax difference within the time limit 40 the days from the date of the settlement, where the following conditions are cumulatively fulfilled:
- The taxpayer only issued structured invoices – i.e. using the National e-Faktur System - so-called KSeF - a voluntary (and professional) system to date, is to become mandatory from 1 January 2024,
- the amount of input tax not calculated in previous accounting periods, i.e. to be transferred to subsequent periods, must not exceed 3,000 PLN,
taxable person by subsequent 12 the months preceding the settlement period for which the refund is requested:
- - has been registered as an active VAT taxable person,
- - submit VAT JPK files for each settlement period,
- - has held a billing account or an account in the SKK, contained in the so-called White List of VAT taxable persons.
Time limit 25 days
Tax office returns tax difference within the time limit 25 days from the date of the settlement, where the following conditions are cumulatively fulfilled:
the amounts of input tax shown in the tax return are the result of invoices which have been paid in full through the taxpayer's bank account or the taxpayer's account in the SKOK (this condition does not need to be met if the total amount of the claim does not exceed 15,000 PLN),
the taxable person shall submit to the tax office (no later than the date of submission of the declaration) a confirmation of the payment of these duties,
the amount of input tax not accounted for in previous accounting periods, i.e. to be transferred to subsequent periods, does not exceed 3,000 PLN,
taxable person by subsequent 12 the months preceding the settlement period for which the refund is requested:
- - has been registered as an active VAT taxable person,
- - submitted VAT JPK files for each settlement period.
Time limit 15 days
The tax office is obliged to repay the tax difference within the time limit 15 the date when the following conditions are met:
for three consecutive periods of account (and in the case of a taxable person accounting on a quarterly basis for one accounting period) preceding the period of refund requested, a percentage of:
- the total value of sales (including tax) made using online registers during the accounting period concerned in the total value of sales made by the taxpayer during the accounting period was at least 80%,
- the payments received using payment instruments showing that the payment was made using a payment card, a mobile payment or a credit transfer order in relation to the total value of the sale (made via online cash registers) during the relevant settlement period was at least 80%,
by another 12 the months preceding the settlement period of the refund, the total value of the sale made by the taxable person using online cash registers for each accounting period shall not be less than 50,000 PLN,
for the period for which the taxable person requests reimbursement:
- - the amount of VAT refund may not exceed twice the tax resulting from sales recorded using the cash registers in the relevant accounting period,
- - the amount of input tax not calculated in previous accounting periods, i.e. to be transferred to subsequent periods, does not exceed 3,000 PLN,
taxable person by 12 the months immediately preceding the period for which the refund is requested:
- – was registered as an active VAT taxable person,
- – submitted JPK files for each settlement period,
- – kept records of sales only using online cash registers.
Furthermore, the taxable person by 3 The months preceding the application for an accelerated VAT refund must have an account disclosed on the so-called White List. As you can see, the shortest possible reimbursement of input tax is naturally the highest number of conditions.
Repayment within the time limit 180 days and the possibility of shortening to 60 days
Where the taxable person has failed to carry out the taxable activity during the tax period, he shall be entitled to a refund of the amount of input tax, but in that case he must wait until 180 days from the settlement date. This period may be shortened to 60 days at the request of the taxable person if he lodges a property security.
Optional extension
In all such cases, where the validity of the refund requires additional verification, the head of the tax office may extend that period until the verification of the taxable person’s settlement in the course of the verification, tax control, customs-tax control or tax proceedings has been completed. If the actions carried out by the Authority demonstrate the appropriateness of the refund, the tax office must pay the amount due, together with interest corresponding to the extension fee.
However, in the event of an extension of the time limit, the refund will be made within the time limit if the taxable person submits the application together with the security corresponding to the value of the refund. If the application with the security is lodged on 13 days before or after the expiry of the period, reimbursement shall be made within the time limit 14 the days from the date on which that security was lodged.
Obligatory extension
In all the above situations, the head of the tax office shall also extend to the taxable person the time limit for the refund of the tax difference on the basis of a request from the Chief Chief of the Chief of the Chief of the Central Anti-corruption Office, the Head of the Internal Security Agency or the Attorney General for the period specified in the request, but no longer than 3 months.
The request must contain a justification. As with the optional extension of the refund, when the return is reasonable, the tax office then pays the taxpayer interest equal to the extension fee.
In summary
The faster VAT return has a positive effect on the taxpayer’s financial liquidity, but, as indicated above, is usually subject to a number of requirements necessary to comply with it. The taxpayer must therefore decide whether it pays to take action in order to obtain a faster refund of the input tax.
This can be done, for example, by using the KSeF system, by paying invoices only through a bank account or by turning into a ‘cashless taxpayer’. However, these actions will require additional resources, as well as continuous control of compliance with the fiscal conditions.
Author: Mateusz Krawczyński, junior tax consultant in Russell Bedford Poland. Graduated from bachelor's degree in Logistics and Master's degree in Finance and Accounting. He is currently studying law at the Łazarski University. He gained earlier professional experience in tax matters in one of the companies from the so-called Great Four. He specializes in tax on goods and services, in particular with regard to VAT settlements in local government units.