JPK_V7 in a construction company - new VAT register!

Service-Tax

Construction companies are one of the fastest growing industries in our economy. Both large and small entities operate in the construction industry. Usually large ones, apart from the construction of buildings, sell them as well. On the other hand, smaller ones usually act as subcontractors or carry out minor renovation and construction works for natural persons. In connection with the Regulation of the Minister of Finance, Investments and Development of October 15, 2019 on the detailed scope of data contained in tax declarations and records in the field of tax on goods and services, the above-mentioned industry is also facing major changes. What changes does JPK_V7 introduce in a construction company? Check!

JPK_V7 in a construction company - records with GTU code

At the outset, it should be remembered that when the goods or services belong to one of these thirteen groups, the taxpayer conducting construction activity will be obliged to mark them with the appropriate GTU code in JPK_V7M or JPK_V7K.

Example 1.

A construction company builds blocks on behalf of the developer. In October, it started building a large housing estate in Kalisz. Should the services sold be marked with the GTU code in the records? 

The legislator listed three types of services in the GTU regulation:

  • provision of services for the transfer of greenhouse gas emission allowances;
  • provision of intangible services;
  • provision of transport and warehouse management services.

Thus, construction services performed for the developer should not be marked with the GTU code, as they are not included in the above-mentioned catalog of services.

Example 2.

A construction company is building an estate of detached houses. It will sell completed houses after it is completed. Does it have to mark sales invoices with GTU code in the records?

In this case, the subject of the service is not a construction service for the sale of houses (delivery of goods). Under the GTU 10 heading, there is the delivery of buildings and structures. Thus, the sale of houses by a construction company is marked with the GTU code. In this case, the goods are delivered, not the service.

Example 3.

A construction company is building a hall that it intends to sell. In this case, does it have to mark sales invoices with the GTU code in the records kept?

Yes, because also in this case the building is sold. The sales invoice must therefore be marked with the GTU 10 code.

MPP and the new JPK_VAT in a construction company

At the outset, it should be recalled that most companies engaged in construction activities from November 1, 2019 use the mandatory SPM. This obligation applies only to transactions that meet the criteria of Art. 108a paragraph. 1a of the VAT Act. Therefore, construction companies in the new JPK_VAT will be obliged to mark these transactions. The legislator obliged to mark the above-mentioned transactions in the records kept with the MPP designation. Importantly, the above marking applies to both entities selling and buying services or products that are subject to the mandatory SPM.

Example 4.

A construction company from Kalisz carried out a renovation service. It consisted in making an electrical installation. The total value of the invoice exceeds PLN 30,000 gross. In such a situation, should it be marked with the SPM in the new JPK_VAT register?

Yes, the taxpayer in this case must mark the invoice as SPP in the new JPK_VAT register. Importantly, the above service is subject to the obligatory SPM.

JPK_V7 in a construction company and the cash register

In a construction company, the cash register is not obligatory. However, taking into account the amount of the exemption from cash registers (currently PLN 20,000 per year), many entrepreneurs have to apply it. According to the new JPK_VAT, monthly reports from the cash register should be marked with the symbol "RO".

Example 5.

A construction company has carried out a renovation in the flat of a natural person who does not conduct business activity. The above service has been recorded at the cash register and included in the monthly report. How should the taxpayer mark the above fiscal report in the new JPK_VAT?

In this case, as shown above, the monthly report should be marked as "RO".

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Invoices for receipts in a construction company

Taxpayers who are natural persons who do not conduct business activity, often request invoices for previously issued fiscal receipts. The above is due to the possibility of taking advantage of the thermo-modernization relief.

Example 6.

A construction company made a photovoltaic installation on a residential building of a natural person. A natural person, after receiving a receipt, requested an invoice because he wants to take advantage of the thermomodernization discount. Will the above invoice need to be marked in a special way in the JPK_VAT records?

In this case, the taxpayer should mark the invoice issued to the natural person in the JPK_VAT records as FP.

To sum up, in a construction company, when a taxpayer supplies buildings, structures or land, he must use the GTU 10 code. The construction services provided are not subject to GTU markings.

In the case of keeping records by construction companies using cash registers, monthly fiscal reports should be marked as RO in the new JPK_VAT.

In the case of an issued invoice for a receipt for a natural person, FP should be marked in the JPK_VAT records kept.

In addition, construction companies are required to mark certain invoices as SPM in the JPK_VAT records kept.

Legal basis

§ 10 point 3, § 4 point 13, § 5 point 1, 3 of the Regulation of the Minister of Finance, Investment and Development of October 15, 2019 on the detailed scope of data contained in tax declarations and records in the field of tax on goods and services.