"White list" of VAT taxpayers

From 1st September of the current year, the Head of the National Revenue Administration (KAS) compile a list of registered VAT payers (including entities who were declined to be registered for VAT purposes, removed from the register and restored to it) in an electronic form, containing - apart from the data previously stored - numbers of taxpayers’ bank accounts.

How it work in practice?       

It means that the taxpayers have to make sure the above-mentioned database lists their current bank account numbers used within the scope of their business activity to settle all the transactions conducted with contractors in the amount exceeding PLN 15,000 (around EUR 3,500).
Therefore, while paying for purchased goods or services, the taxpayers are required to verify the bank account of the supplier every time, so that the transfer is made to the right bank account, i.e. the number of bank account included in the list drawn up by the Head of KAS.

Sanctions for a transfer to an account other that specified in the list

The failure to check the account number provided by the contractor to receive a payment with their number of account detailed in the list, and hence making payment to a different bank account (or making a cash payment exceeding PLN 15,000), shall entail highly negative consequences for the person making the payment, such as:

  • the lack of possibility to recognize such an expense/payment as tax deductible costs (sanction in force from 1st January 2020 or, in case of taxpayers who have a different fiscal year than the calendar year, the sanction is applicable to the liabilities paid in the financial year commencing after 31st December 2019);
  • bearing joint liability with the supplier for their tax arrears related to VAT in the amount equal to the VAT proportionally attributable to the supply of goods/services, the payment for which was made to a different bank account number than the one listed by the Head of KAS. Consequently, if the transfer was made to a different account than the one specified in the database, in case the VAT from this transaction is not paid by the supplier, the customer shall be liable for the VAT unpaid by the supplier. This sanction shall enter into force on 1st January 2020 (please note it will not apply in case of the so-called split payments).

In order to avoid the above sanctions, from 1st January 2020, not only should the bank account numbers provided by the contractors be constantly verified with those listed by the Head of KAS, but also the taxpayers have to ensure that this database contains their current bank account numbers used within the scope of their business activity.