On 1st September 2019 the so-called Polish “White list” came into effect.
The new electronic register of Polish VAT payers will be kept by the Head of the National Tax Administration. In addition, it is available on the Ministry of Finance’s website. More details can be found in our earlier article published here.
There is a key new condition that tax payers must be aware of. Whenever a payment is made to a business on the white list, that payment must go to the bank account detailed on the list. However, that requirement will only apply for transactions with a value above PLN 15,000 (VAT inclusive).
“White List” Challenges
Any taxable person settling an invoice through a money transfer made to an account not on the “white list” will face two challenges:
- Any VAT associated with that cost will not be deductible.
- The purchaser will become joint and severally liable with the seller for any output VAT due that the seller does not settle.
These new rules do not distinguish between businesses established and not established in Poland. They merely apply to all Polish VAT registered entities.
Currently, it is unknown whether non-Polish bank accounts can be on the ‘white list’. This is something that we are monitoring. However, it is possible that non-established businesses registered for VAT in Poland will need to open an account. This bank account will need to be with a Polish bank and reported to a tax office. We will provide updates on this as they happen.
The tax office has given businesses four months to adapt to these changes, therefore, any sanctions for non-compliance will only apply from 1 January 2020.
Contact our VAT experts now and find out how this change could affect your business.