Your company intends to apply for a VAT refund in Poland in the basic period? Then you must know that submitting correct VAT return for July may be ‘a bit’ more problematic than you hope.
At the moment submitting VAT return for July 2018 and applying for refund in 60 days is simply not possible. It seems that even they could not have predicted that introduction of split payment could have such adverse effect. All because of new forms.
2 months prior to the split payment mechanism going live in Poland, in May 2018, the Minister of Finance published the regulation on the new VAT return forms that cover period of July 2018.
Unfortunately numerous errors have found their way into the instrument effectively preventing taxpayers from filing correct VAT settlement for July 2018. Our VAT experts at KR Group have identified and outlined just some of these below.
From procedural perspective an entity looking to receive a refund 60 days following the request cannot make an application in the way it was done under former versions of VAT returns. The VAT-7 form requires appendix in a form of VAT-ZZ which can only be attached upon satisfying very specific set of conditions. Consequently, applying for a refund in a standard way is just not going to work.
Next to the chopping block is NIL VAT returns. Number of users report that obligatory fields cannot be filled – for instance, the contact details section is blocked. Less fields to complete might be a good thing but probably not when it results in problems with acceptance of such form by the tax office. On the top of that removal of REGON number field has caused heavy turbulences. Perhaps the Ministry has some sort of wide-reaching plan in mind that we are not yet aware of.
KR Group has returned to the Ministry of Finance with a request for explanation but we are yet to receive a response.
If you find yourself in such predicament or face difficulties when dealing with VAT returns the specialists at KR Group are here to assist you.
Update 21st August 2018
We have good news for Polish VAT taxpayers who want to report their VAT settlements for July 2018.
In response to numerous remarks regarding errors in the latest version of the VAT-7 form, which have been noticed and reported among others by the KR Group, the Ministry of Finance on 20th of August, 2018 published an updated VAT-7 form on its website.
Most of the errors have already been fixed, but some fields still remain blocked for editing. This applies i.e. to contact details field.
Nevertheless, the updated version allows to correctly report the excess of input VAT over the tax due to be refunded in the basic – 60 days – period.