JPK VAT

2017-02-23 Up until now (starting from July 1st, 2016) the JPK VAT was an obligation valid only for large entities. The obligation involves submitting a monthly JPKVAT file that contains a record of all purchases and sales of VAT.

Starting from January 1st, 2017, small and medium-sized enterprises are also subject to this requirement. These businesses must file in their first report no later than on February 27th, 2017.

Starting from January 1st, 2018 the obligation will also include micro-entrepreneurs.

All entities required to submit JPK records must do so in electronic form and using an electronic signature. Sending a JPK is confirmed by downloading of a UPO file, which is an official confirmation of receipt sent by the office.

The Ministry of Finance provides the client application required to send JPK files, together with an instruction manual containing instructions for installation and operation of the JPK client application as well as a sample JPK_VAT_002.csv file.

Entrepreneur, check when your obligation to send a JPKVAT file starts. Can you be classified as a micro-entrepreneur, a small or medium-sized business, or maybe you're already a large economic entity?

Micro-entrepreneur

As according to the art. 104 of the Act on freedom of economic activity, a micro-entrepreneur is an entrepreneur who in at least one of the last two financial years has fulfilled both the following conditions:

1. employed on average fewer than 10 employees, and


2. achieved an annual net turnover from sale of goods, products and services as well as financial operations not exceeding the PLN equivalent of 2 000 000 EUR.

The obligation to transmit data in the form of JPK will start as follows:

• • Tax records (JPKVAT file) to be sent each month without an individual request of the tax authority - starting from January 1st, 2018.


• • Data needed for e-checks (all JPK files) when requested by the tax authorities - starting from July 1st, 2018.

Small business

An entrepreneur who in at least one of the last two financial years has fulfilled both the following conditions:

1. employed on average fewer than 50 employees, and


2. achieved an annual net turnover from sale of goods, products and services as well as financial operations not exceeding the PLN equivalent of 10 000 000 EUR.

Medium-sized business

An entrepreneur who in at least one of the last two financial years has fulfilled both the following conditions:

1. employed on average fewer than 250 employees, and


2. achieved an annual net turnover from sale of goods, products and services as well as financial operations not exceeding the PLN equivalent of 50 000 000 EUR.

Starting from January 1st 2017, these taxpayers are obliged to sending of JPK files.

Penalties

Penalties for violations and tax offenses have become much more strict. Errors in tax settlements can prove to be very costly. Failure to file the JPK, delay in sending or errors in the file are the basis for imposing penalties on taxpayers. Failure to send the data in a JPK file might result in a penalty fee of 2 800 PLN. Any person who fails to submit the information within the required deadline is subject to a fine in a height equaling up to 120 daily rates. Rates are determined individually by the court - in 2017 the maximum penalty could reach more than 3 000 000 PLN.

To avoid financial penalties from the IRS, you should equip your company with the appropriate software that will safely implement all the changes happening within the tax regulations or turn to the services of a professional accounting office.