Changes to JPK VAT and FA structures in 2019-2020

Changes to JPK VAT and FA structures in 2019-2020

The moment as from which the new JPK VAT structure (initially named JPK VDEK) was due to be in force was postponed several times. Finally, under the new names—i.e., JPK V_7M for taxpayers settling their accounts on a monthly basis and JPK V_7K for those making quarterly settlements—the structure is due to become effective from 1 April 2020 onwards for so-called large companies and from 1 June 2020 for the others. Thus, taxpayers have almost six months to get prepared for the coming change, which in fact includes a number of changes.

Changes to JPK VAT and FA structures in 2019-2020

While the existing JPK VAT(3) file was informative, JPK_V7M and JPK V_7K are declarative. Both files combine the previous JPK VAT(3) structure, the VAT return as such, and relevant notes (additional information).

Compared to JPK VAT(3), the legislator has only dropped the ‘Purchaser address’ and ‘Contracting Party address’ boxes. This decision is seemingly right; it is worth stressing that initially, both boxes appeared in drafts of the new structures.

One of the important alterations made by the legislator is ‘Indication regarding the supply and services rendered’ node inserted (as part of the ‘Sale_Line [SprzedazWiersz]’ node), which includes thirteen groups of goods and services marked with a GTU abbreviation plus a sequential number—e.g. GTU_01 stands for the supply of alcoholic beverages.

Such a division into groups is based on various sources, including (inter alia) general notions, integrated nomenclature codes, and items of Annex no. 15 to the VAT Act. The said groups are only those of sensitive goods or services, thereby not exhausting the goods or services traded in Poland, in their entirety.

It is worth noting that the split in question may imply serious practical consequences. Namely, the lack of a common denominator for the aforementioned GTU groups and their being based on diverse sources will certainly not facilitate their creation and, subsequently, the downloading of relevant pieces of information for JPK V_7M and JPK V_7K files from the accounting systems.

The other major change is the addition of the ‘Marks regarding procedures’ node, consisting of thirteen types of transaction, one of them being the ‘SW’ box, standing for main-order sale. Also, in this case, taxpayers should check before April 2020 whether their accounting systems enable to appropriately assign one of the thirteen transaction types to the specific sale transactions.

Outside the node, a ‘Tax base adjustment [‘KorektaPodstOpodt’]’ is inserted to relate to adjustments of the tax base and the output tax, as referred to in Art. 89(a), clauses 1 and 4 of the VAT Act. As is the case with the above-listed types of transaction, this box is an optional checkbox—only to be filled out in relation to transactions under Art. 89(a), clause 1 and 4 of the VAT Act.

The ‘SprzedazWiersz [Sale_Line]’ and ‘ZakupWiersz [Purchase_Line]’ nodes have boxes added regarding the type of document (named, respectively, ‘TypDokumentu’ [Document Type]’, to mark the certificate/bill of sale, and the ‘DokumentZakupu’ [‘Bill of Purchase’], marking the bill (certificate) of purchase). Each of these boxes enumerates three types of documents, which altogether do not exhaust all the possible options. In the sales area, there are the following document types: ‘RO’ (a comprehensive document containing sales from cash registers); ‘WEW’ (internal document), and ‘FP’ (invoice issued for a sale recorded with the use of a cash register). The purchases area includes: ‘MK’ (invoice issued by small taxpayer); ‘VAT_RR’ (invoice issued by flat-rate farmer); and ‘WEW’ (internal document).

In the ‘ZakupWiersz [Purchase_Line]’ node, apart from the ‘DokumentZakupu’ [‘Bill of Purchase’] box, two other types of transaction are indicated for the buyers to mark in their systems if a given line in the JPK V_7M or JPK V_7K file concerns the given transaction. The transactions are those to which the Split Payment Mechanism (SPM) pertains as well as import transactions (IMP)—including simplified import as referred to in Art. 33(a) of the VAT Act.

As mentioned above, the legislator has dropped the contracting-party address fields but instead added fields or boxes related to the code of the country in which the contracting party’s tax identification number was granted, both in the sales and in the purchases area.

In our opinion, a practical doubt may arise around the question whether for the European Union countries the contracting party’s TIN ought to be given together with the country code (plus, in addition, the country code in the appropriate field/box), or rather, separately—as a two-letter country code in a separate field, with the remainder of the number entered in the ‘contracting party number’ box.

We should also like to remark that the possible errors made whilst preparing the new JPK_V7M and JPK_V7K may imply significant consequences, as in line with Art. 109, clause 3(g) of the VAT Act, taxpayers have fourteen days to correct the errors indicated by the authority in the call for adjustment, or to propose their explanation that the record contains no errors referred to in the call. Failure to correct/adjust such errors or to propose one’s explanation/clarification, or completing the action after the lapse of the timeframe or final date set for the purpose will imply a decision to impose a fine of PLN 500 for every single error specified in the call. The penalty is payable within fourteen (14) days of the delivery of the penalty-imposing decision.

The penalty determined in the VAT regulations for errors in the JPK_V7M and/or JPK V_7K files is aimed at reducing the number of errors, as part of the data transmitted into the system. From the standpoint of tax authorities, this would mark a considerable progress which would possibly increase the efficiency of inspection bodies.

Furthermore, based on the published layouts of the new structures, it could be surmised that they concern the period of 2020–2030. Given the circumstances, one should infer that adjustments of the settlements for the periods before 1st April 2020, beginning with 1st July 2016, will be made based on the appropriate VAT return and the JPK VAT(3) file.

To end with, in our opinion, a considerable positive change, compared to the present-day legal framework, is that the content of the new JPK V_7M and JPK V_7K structures is based upon the Ordinance ‘on the detailed scope of data specified in tax returns and in the VAT records’ of 18 October 2019 (i.e. Journal of Laws [JL] 2019, item 1988).

JPK FA(3) from 1 December 2019 onwards

In the tangle of changing VAT regulations, it was possible to overlook the fact that the structure of the Polish standard audit file [abbreviated as JPK] for VAT invoices (hereinafter, ‘JPK FA’) is being altered for the second time this year.

The changes have primarily been due to the new regulations regarding VAT invoices in respect of SPM, as launched under the Act ‘amending the Value-Added Tax Act and certain other acts or laws’ of 9 August 2019 (i.e. JL of 13 September 2019, item 1751).

In addition, the legislator has introduced a number of other modifications to the JPK FA structure. The new regulations in this respect only pertain to invoices issued after 1 November 2019. In practice, tax authorities can demand files produced in the new structure after 27 December 2019, this being the submission date of VAT returns for November 2019.

Worthy of note is the fact that the ‘StawkiPodatku [Tax Rates]’ node has been removed in the most recent version. The position of the ‘KodWaluty [Currency Code]’ box has been transferred from the ‘Nagłówek [Head]’ node to the ‘FakturaWiersz [Invoice_Line]’ node. Hence, the taxpayer will generate a single JPK FA file for multiple currencies. This is a major simplification as originally one JPK FA file could only refer to invoices issued in one and the same currency. It thus could have repeatedly happened that a taxpayer issuing invoices in different currencies had to generate a number of JPK FA files for the same period.

Reporting on VAT advance invoices has been significantly modified by the addition of two elements referring to VAT advance invoices—that is, the ‘NrFaZaliczkowej [No. of Advance Invoice]’, for all previously issued advance invoices, and two nodes: ‘Zamówienie [‘Order’]’ node specifying the details of advance invoices, and ‘ZamowienieCtrl [‘OrderCtrl’]’ with checksums for orders or agreements/contracts.

In addition, the structure itself determines the method of reporting on invoices issued in foreign currencies, pointing that the amounts of sale and tax are to be filled out in the currency as invoiced, save for those boxes where tax amounts have been converted in line with Art. 31(a), in conj. with Art. 106(e), clause 11 of the VAT Act.

As pointed out by the Ministry of Finance, the above changes in reporting on foreign-currency invoices and advance invoices have been postulated by taxpayers.

Kamil Chmielewski, Supervisor, Tax Consulting Section, VAT Team, KPMG (Poland)

Maciej Jarosz, Consultant, Tax Consulting Section, VAT Team, KPMG (Poland)

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