VAT-7 declaration - when was it submitted and on what basis?

Service-Tax

Until September 30, 2020, VAT-7 or VAT-7K declarations were submitted by all entrepreneurs who are active VAT taxpayers. Depending on the frequency of VAT payment, the taxpayer specified on the VAT-R form, such a declaration was submitted. The taxpayer who settled the tax on a monthly basis was required to generate a VAT-7 declaration, while quarterly taxpayers - a VAT-7K declaration. Who and when was obliged to submit the declaration? Have the forms of submitting declarations changed and what about taxpayers who suspended their business? Let's check in the article!

The deadline for submitting VAT declarations is September 30, 2020.

Pursuant to Art. 99 sec. 1 of the VAT Act, active payers of tax on goods and services are required to submit a settlement declaration showing transactions made in a given period for the completed period. In a situation where the taxpayer settles monthly payments, until September 30, 2020. was obliged to prepare a VAT-7 declaration form. The deadline for submitting monthly declarations is the 25th of each month for the previous month. This is a general rule, from which there are some exceptions, small taxpayers who have a period of 12 months from the moment of registration to VAT, have the option to settle VAT on a quarterly basis. In this case, the quarterly declaration had to be submitted by the 25th day of the month following the given quarter. Taxpayers settling quarterly accounts were required to submit a VAT-7K declaration, as well as pay VAT for:

  • 1st quarter until April 25,

  • 2nd quarter until July 25,

  • 3rd quarter until October 25,

  • 4th quarter until January 25.

Small taxpayers who chose the VAT cash method submitted their VAT returns on a quarterly basis. The exception were taxpayers settling with the cash method, who had less than 12 months from the moment of registration. In such a situation, it was necessary to submit a VAT return every month for the first 12 months.

All VAT taxpayers were obliged to submit VAT returns, including those who did not perform any activities subject to VAT in a given settlement period. In such a situation, it was necessary to submit a zero VAT return.

Entrepreneurs should remember that if the date of submission of the VAT declaration falls on Saturday, Sunday or a holiday, the settlement date is postponed to the next working day. In addition, a taxpayer who fails to submit a declaration within the time limit set by law is obliged to settle the tax liability together with the accrued interest for each day of delay. At the time of committing a prohibited act, such as failure to submit a VAT return or failure to settle the tax obligation on time, the taxpayer should submit the so-called active grief. If the amount of interest does not exceed PLN 8.70, the entrepreneur is not obliged to pay interest.

Form of submitting a VAT declaration

With the changes that took place on January 1, 2018, taxpayers initially lost the option to submit paper-based VAT tax returns to the tax office. The only valid form of submitting the declaration is by electronic means. Art. 99 sec. 11b of the VAT Act
The declarations referred to in para. 1-3, 3c-6, 8-9 and 11a, consists only by means of electronic communication.

To send VAT declarations, self-employed taxpayers do not need to have qualified signatures or a trusted profile, because the declaration can be signed with the amount of revenue (in 2020, the amount of revenue from 2018 should be used).

Active VAT payer and JPK_V7

From October 1, 2020. all active VAT payers are obliged to submit a JPK_V7 structure every month in the form of:

- JPK_V7M, if they are billed monthly or,

- JPK_V7K, if they are settled quarterly.

According to the new obligation, for the periods after September 30, 2020. no longer the VAT7 / VAT7K declaration is submitted, but the JPK_V7 file, which replaced the previously submitted VAT declarations and JPK_VAT files.

JPK_V7 a split payment

In addition to the obligation to keep VAT registers in electronic form, generate and submit SAF-T and the obligation to send tax declarations only in electronic form, the Ministry of Finance has introduced a split payment mechanism. Split payment is nothing more than settling liabilities to two accounts: the supplier's company settlement account and a special VAT account. Taxpayers can do this using the so-called transfer message. A detailed description of the split payment mechanism can be found in the article: Split payment - what is it?

From November 1, 2019, for taxpayers who made sales using the reverse charge procedure, split payment is an obligatory method of settling liabilities.

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In terms of split payment, taxpayers should know that not the sales or purchase invoice covered by the obligatory split payment should be marked with the MPP symbol in the JPK_V7 file. Details on markings and new obligations are described in the article: JPK V7 - what is included in the new structure of the single audit file?

Which tax office is competent for VAT purposes?

From January 2020, VAT is paid to an individual tax micro-account, so it is no longer important to determine the appropriate tax office to which the liability is settled. A tax micro-account is an individual bank account for tax payments: VAT, PIT and ZUS.

Does the new JPK file replace all VAT declarations?

From October 1, 2020. the obligation to submit VAT-7 / VAT-7K declarations has been completely abolished. Additionally, the obligation to submit VAT-ZT, VAT-ZZ, VAT-ZD attachments has been abolished. The scope of information provided by taxpayers in the form of the new SAF-T will allow the offices to conduct inspection activities faster, mainly in industries and areas that are sensitive and exposed to VAT fraud. On the one hand, the purpose of introducing a new VAT structure is to tighten the tax system in Poland. On the other hand, taxpayers may be subject to severe penalties in the form of PLN 500 for each error in the file sent.