Quarterly tax return - when and to whom?


Taxpayers of value added tax are required to submit VAT returns. Declarations should be submitted for a monthly period, however, after meeting the conditions specified in the VAT Act, it may be a quarterly tax settlement.

Quarterly tax settlement - for whom?

Quarterly VAT settlement is possible only for small taxpayers. The provisions of the VAT Act define who it is. Pursuant to Art. 2 point 25 of the VAT Act, a small taxpayer is a taxpayer of value added tax:

  • in which the value of sales (including the tax amount) did not exceed the amount expressed in PLN in the previous tax year, corresponding to the equivalent of EUR 1,200,000. Thus, if the value of sales (including the amount of VAT) of the VAT payer did not exceed PLN 5,176,000 in 2017, it will be able to become a small taxpayer in 2018;

  • running a brokerage company, managing investment funds, managing alternative investment funds, being an agent, commissioner or other person providing services of a similar nature, with the exception of a commission commission - if the amount of commission or other forms of remuneration for the services rendered (including the tax amount) did not exceed the previous in the tax year, an amount expressed in PLN corresponding to the equivalent of EUR 45,000 (PLN 194,000).

However, what is important, the possibility of submitting quarterly declarations in accordance with Art. 99 (3a) of the VAT Act, regardless of the status, taxpayers do not have:

  1. registered by the head of the tax office as active VAT payers - for a period of 12 months starting from the month in which the registration was made (this exemption was added on January 1, 2017) and
  2. who in a given quarter or in the preceding 4 quarters delivered the so-called sensitive goods (i.e. goods listed in Annex 13 to the VAT Act), unless the total net value of deliveries of these goods did not exceed, in any month of these periods, the amount of PLN 50,000; the scope of this exemption was extended on 1 January 2017; until the end of 2016, it did not include taxpayers whose total net value of supplies of sensitive goods exceeded PLN 50,000, but did not exceed 1% of the net sales value.

Importantly, in accordance with Art. 14-15 of the Act of December 1, 2016 amending the Act on tax on goods and services and certain other acts (Journal of Laws of 2016, item 2024), taxpayers who have been registered as VAT taxpayers active after September 30, 2016 ., will submit monthly declarations starting from January 1, 2017, although in the last quarter of 2016 they were settled quarterly, not monthly.

The loss of the right to submit quarterly declarations by taxpayers who are not small taxpayers occurred under the law.

Notification of the head of the tax office

In order to use the quarterly settlement of VAT, please notify the head of the relevant tax office. The jurisdiction of the tax office is defined in Art. 17 § 1 of the Tax Ordinance, according to which, unless the tax laws provide otherwise, the local jurisdiction of the tax authorities is determined according to the place of residence or the address of the taxpayer's seat.

The notification should be made on the VAT-R form within a specified period. Newly established entities, VAT-R, aimed at registering the entity as an active VAT taxpayer, must be submitted to the tax office before performing the first taxable activity. However, an entity registering for VAT can only choose the monthly method of VAT settlement. Changing the settlement period into quarterly tax settlement will be possible only 12 months after registration.

Taxpayers who pay monthly and want to change the VAT settlement to quarterly, must submit the updating VAT-R form no later than on the 25th day of the second month of the quarter for which they want to settle quarterly, that is:

  • February 25 - deadline for reporting the intention to settle accounts for the first quarter,

  • May 25 - deadline for the second quarter,

  • August 25 - deadline for the third quarter,

  • November 25 - deadline for the fourth quarter.