Please note that 1 July 2020 was the effective date of new amendments to regulations under which payments above PLN 15K made without checking if the payee’s account is white-listed do not:

  • create negative consequences for PIT/CIT purposes (no deduction),
  • make customer (payer) liable for VAT jointly and severally with the supplier (payee).

This change was introduced by way of the act of 5 June 2020 to amend the Personal Income Tax Act, the Corporate Income Tax Act, the Act on Flat-Rate Tax on Certain Incomes of Natural Persons, and certain other acts (“Amending Law”).

Major changes under the Amending Law:

  • The time to notify the tax authorities that payment has been made to a non-white-listed account is extended from 3 to 7 days, counting from the payment instruction date. However, note that, pursuant to Article 15zzn of the Act of 2 March 29020 on Special Measures to Prevent, Counter and Combat COVID-19, Other Infectious Diseases and the Related Crisis Emergencies, this deadline is extended even more, to 14 days from the payment instruction date, as long as the coronavirus-related state of epidemic emergency or of epidemic remains in force.
  • The notification should now be filed with a different tax authority. Before, the appropriate tax office was that with jurisdiction of the invoice issuer, now it is the one with jurisdiction of the payer.
  • There are more situations where the adverse consequences will not apply. These are situations where the payment:
    • is made by funds transfer to an account of a bank or savings and loans association (SKOK) which is used for assignments, factoring or the bank’s or association’s internal management purposes, on condition that the bank, the association or the invoice issuer ensured that the account number information given to the payer for the purposes of the payment was accompanied by a notice that the account is one of such accounts;
    • has been made in accordance with the split payment mechanism; or
    • arises from an invoice which evidences an intra-Community acquisition of goods, an importation of goods or services, or a supply of goods where the customer is the party liable to tax.

Note also that, in accordance with transitional provisions, the new law will as a rule apply to payments made in any tax year that began after 31 December 2019 and, conversely, to expenses which were deducted for tax purposes after 1 January 2020, which means the law operates retroactively.

However, this does not apply to the provisions laying down the duty for the bank, the association or the invoice issuer to give notice that the account indicated for the payment is an account used for assignments, factoring or internal management.

If this issue pertains to your business and you are interested in our assistance, please contact us.

This blog post is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.