The draft regulation will impose a new obligation on all Polish VAT taxable persons that all payments exceeding PLN 15.000 need to be made to the supplier bank account that was revealed by the Polish authorities. The draft mentions that the authorities will on a daily basis publish a list of all Polish VAT taxable persons with details of their VAT registration, including the bank account as the businesses have reported to the Polish Tax office when registering their details for VAT.
The above means that all Polish VAT taxable persons (also foreign businesses registered for VAT in Poland) will need to inform the Polish tax authorities about their bank accounts used for their Polish transactions in order to make sure that customers make the payment to a registered account. This will be of high interest for their customers, as payments to unregistered accounts will in general be excluded from tax deductible costs for CIT/PIT purposes. In addition the purchaser will be jointly and severally liable for the potential seller’s tax arrears related to that particular transaction. The bank account does not need to be a Polish bank account, a foreign bank account can also be used for such business activities.
In principle, the new provisions are supposed to come into force on September 1, 2019. However regulations introducing negative consequences in the event of payment to a contractor’s account other than disclosed in the list, will take effect from January 1, 2020.
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