EU VAT correction - in which cases should it be submitted?
Taxpayers carrying out intra-Community transactions, i.e. import and export of goods and export of services, are required to submit VAT-EU summary information. Information may be submitted electronically, on a monthly basis. The information contained therein should reflect the actual transactions. In some situations, it will be necessary to correct the submitted VAT-EU information. On the part of entrepreneurs, a question arises whether in such a situation it is also necessary to provide explanations regarding the reason for submitting an EU VAT correction. How should the EU VAT correction be submitted? You will find the answer in our article!
Summary information of VAT-EU and EU VAT correction
Entrepreneurs carrying out intra-Community transactions, i.e. with entities belonging to the EU, must remember to properly document such a transaction and show it on tax grounds. One of the basic obligations of taxpayers who perform:
- intra-Community supply of goods (WDT),
- intra-community service provision (WŚU),
- intra-community acquisition of goods (WNT)
is VAT-EU registration. Registration for VAT-EU is made using the VAT-R form in part C.
Art. 100 sec. 3 of the VAT Act:
Summary information shall be submitted for monthly periods by means of electronic communication by the 25th day of the month following the month in which the tax obligation arose in respect of the transactions referred to in paragraph 1.
Art. 101 of the VAT Act
If any errors are found in the submitted summary information, the entity that submitted the summary information is obliged to immediately submit a correction to this information by means of electronic communication.
More on the obligation to register for VAT-EU in the article: Registration and submission of EU VAT information.
EU VAT correction - when is it necessary?
Thus, if any errors are found in the submitted summary information, an EU VAT correction is necessary. EU VAT corrections are made by the entity that submitted incorrect summary information.
It is submitted via electronic means of communication. In the case of private persons, the authorization may take place using the amount of revenue (in the case of sending the VAT-UEK declaration in 2019, the amount of revenue from the annual tax return submitted in 2017 is used) or with a qualified signature. On the other hand, an entity which is not a natural person may submit it only by means of a qualified signature. EU VAT correction is made on the basis of VAT-UEK information. Only the data in which the change took place should be completed on the EU VAT correction form. That is, in the "Was" item of the information, we include the incorrectly entered data, and then in the "Is" item, we indicate the data that should be placed in accordance with the facts. In the case of submitting a correction of the summary information by the end of 2015, it was necessary to provide explanations of the reasons for submitting the correction. However, from the beginning of 2016, the justification why an EU VAT correction is made has been abolished.
P.taxpayer in the EU VAT summary information for August 2019 showed the intra-Community acquisition of goods with the following data:
- country code: DE
- Contractor's VAT identification number: DE 1111111111
- Transaction amount in PLN - PLN 5,000
There was a mistake in the contractor's EU VAT number. The correct number is DE 1111234215. Therefore, the EU VAT correction should contain the following data shown in the table:
|Country code||Counterparty's VAT identification number||Transaction amount in PLN|
|"Was"||DE||DE 1111111111||5 000|
|"Is"||DE||DE 1111234215||5 000|
If the summary information has been submitted and the transaction, eg intra-group sum has been posted, the EU VAT correction in the "Was" item will not contain data, and in the "Is" item, the details of the posted transaction should be indicated.
EU VAT correction in the wfirma.pl program
In the wfirma.pl system, in the "Online Accounting" and "Online Accounting + Warehouse" packages, it is possible to correct EU VAT. To generate it, go to the tab: START »TAXES» VAT TAX »ADD A DECLARATION» EUK VAT INFORMATION. In the window that will appear, select the EU VAT correction period and select the NEXT option.
Then, in the generated window, you should manually complete the data on intra-Community transactions indicated in the original VAT-EU declaration ("was") and the current data ("is"). If the entry has been previously corrected in the records, the system will automatically load the data for correction.
The EU VAT correction prepared in this way can be sent to the tax office. The shipment can be made from the system - just mark the correction and use the SEND / EXPORT »SEND OFFICE option. After a positive shipment, when correcting EU VAT, a green envelope will appear and it will be possible to download the UPO.