Shortened deadline for VAT refund - what has changed?

Service-Tax

Taxpayers running a business who are active VAT payers may apply for a VAT refund. In 2017, there were changes in relation to the shortest possible date of VAT refund to the taxpayer's bank account. So how do the regulations regulate the shortened period of VAT refund?

VAT refund deadlines

Taxpayers applying for a VAT refund can choose from 3 dates of refund:

  1. 25 days - an accelerated VAT refund period applies when all invoices have been paid by the date of the declaration,

  2. 60 days - the standard deadline for VAT refund for which all invoices are not required to be paid,

  3. 180 days - extended deadline for VAT refund to be used when the taxpayer has not shown sales for the period to which the tax refund relates, but has shown input VAT
    with purchases made during this period.

Accelerated 25-day VAT refund

Until the end of 2016, a taxpayer applying for a VAT refund could use the shortened period of 25 days, provided that the amount of input VAT indicated in the VAT return related to:

  1. purchase invoices that have been paid in full,

  2. paid customs documents, import declaration and the decision of the customs authority to determine the tax in the correct amount (if any),

  3. the reported amounts of tax due on the occurrence of the import of goods settled in accordance with the simplified procedure, intra-Community acquisition of goods, provision of services or delivery of goods using the reverse charge mechanism.

Shortened deadline for VAT refund in 2017

In connection with the amended art. 87 of the VAT Act, a taxpayer who wants to obtain a VAT refund
within 25 days from the date of submission of the VAT declaration (application for refund of the difference between the tax due and charged) is obliged to meet the following conditions:

  1. the total amount of input tax shown in the VAT return results from:

    1. invoices documenting the purchase of goods or services that have been fully paid via the taxpayer's bank account at a bank established in the territory of the country or the taxpayer's account at a cooperative savings and credit union of which he is a member, indicated in the identification application referred to in separate regulations,

    2. invoices (other than those settled via a bank account or a cooperative savings and credit union) documenting receivables for the purchase of goods and services, if the total amount of these receivables does not exceed PLN 15,000,

    3. customs documents, import declaration and decisions of the customs authority to determine the tax
      in the correct amount and have been paid by the taxpayer (if, of course, such transactions occurred in the given settlement period for which the taxpayer applies for a VAT refund),

    4. import of goods settled in accordance with the simplified procedure, intra-Community acquisition of goods, provision of services for which the recipient is the taxpayer, or supply of goods for which the buyer is the taxpayer, if the tax return includes the amount of tax due on these transactions,

    - the amount of the input tax or the amount of the difference of the tax due and input not settled in previous accounting periods and shown in the declaration are excluded from the above amounts.

  2. the amount of input tax or the amount of the difference between due and input tax not settled in previous accounting periods and shown in the declaration does not exceed PLN 3,000,

  3. the taxpayer submits documents confirming the payment of tax to the tax office via the taxpayer's bank account or the taxpayer's account at a cooperative savings and credit union,

  4. the taxpayer for the next 12 months directly preceding the period for which the taxpayer applies for a refund within 25 days:

    1. was registered as an active VAT taxpayer,

    2. submitted VAT-7 or VAT-7K declarations for each settlement period.

Additional verification and extension of the VAT refund deadline

It should also be remembered that the tax office, when carrying out checks (as part of the submitted application for VAT refund) of purchase and sales documents together with payments, may apply additional verification, resulting in the extension of the VAT refund deadline until the verification of the taxpayer's settlement is completed.

If, as a result of the protracted proceedings, it turns out that the refund is fully justified, the tax office will pay the VAT refund with interest,

The tax office may refund VAT at the taxpayer's request in the protracted proceedings, but the taxpayer must submit such an application within 13 days before the basic deadline for VAT refund and provide a property security in the amount corresponding to the requested amount of VAT refund.

In the course of verifying the validity of the VAT refund, the tax office may compare the taxpayer's settlement
with the settlements of other entities involved in the trade in goods or services, which are the subject of the taxpayer's settlement, as a result of which he will check the compliance of these settlements with the actual course of the transaction.