On 7th June 2019, the Polish Ministry of Finance submitted its updated draft bill to enact certain VAT changes to the Polish Parliament. Key within this changes was the request to delay the launch date of its extended SAF-T system, which will be a replacement for the VAT return (SAF-T stands for Standard Audit File for Tax scheme).
Under the amended timeline, the new Polish SAF-T file will come into effect as of 1st January 2020 for the largest companies and as of 1st July 2020 for the rest. However, a large business is expected to comprise of one that:
- Employs on average 250 employees; and
- Records annual net turnover from normal operations of €50m (in PLN) and whose annual balance sheet total exceeds the equivalent of €43m in PLN
These thresholds will likely be determined by reference to a global position and hence many multi-national but Polish VAT registered businesses are likely to be in scope from the beginning of this requirement.
The draft rules provide that the scope of the existing SAF-T file will be expanded to capture additional data including that which is currently reported in VAT returns. This means businesses will only be required to submit a single document containing all the required information, for each tax reporting period.
The requirement to maintain VAT registers will become more limited since this data will be incorporated in the SAF-T. Also, businesses won’t need to attach physical documents to their submissions, as is the case at present.
Businesses will be required to file the SAF-T monthly, with a deadline of the 25th day of the month following the end of the tax period. Those that now file quarterly VAT returns will have to submit on a monthly basis. Failure to submit the SAF-T or to do so incorrectly will incur penalties. It is reported that for each individual data error, a penalty of PLN 500 may apply.
Contact our VAT experts now and find out how this change could affect your business.