Changes in VAT in 2019 - part 2

Service-Tax

In 2019, entrepreneurs and consumers will face many changes not only in tax acts, but also in others. Laws are increasingly complex. The implementation of new regulations requires from entrepreneurs a lot of knowledge, prudence and vigilance in the aspect of new developments. Some of these news are changes in VAT for 2019 and 2020

Changes in VAT - JPK_VDEK instead of JPK_VAT and VAT declaration

From July 2019 at the earliest, a uniform JPK_VDEK file will be introduced, aimed at replacing the VAT-7, VAT-7K, VAT-27 declarations, as well as later VAT refund applications, i.e. VAT-ZZ and VAT-ZD and a notification about the correction of the base taxation and the amount of tax due VAT-ZD. The intention is also to include in the JPK_VDEK file information that can be found in VAT-9M, VAT-8 declarations and VAT-UE information, but it is not yet known exactly when JPK_VDEK will also be able to replace these declarations. The Ministry of Finance announced that first it plans to introduce the provisions of the VAT amendment, which will enter into force from January 2019, and then to publish a new structure, i.e. JPK_VDEK. Therefore, changes in VAT in this area are still at the stage of works.

The purpose of introducing the JPK_VDEK file is primarily to enable the taxpayer to send one file, which contains a complex of information previously included separately in the VAT declaration and the JPK_VAT file.

Another issue is the elimination of duplicate information in JPK_VAT and VAT declarations. In addition, the JPK_VDEK file will contain fields that contain a VAT declaration and not the JPK_VAT file, e.g. sales determination through VAT-MARGIN, deduction or refund of a tax credit for the purchase of a cash register, VAT return and others.

However, doubts arise with regard to taxpayers who settle VAT on a quarterly basis. Will the monthly obligation to send JPK_VDEK will not affect the quarterly mode of VAT settlement? It remains to wait until the final regulations are published. On the other hand, the Ministry of Finance firmly wants to introduce changes to VAT in 2019 in the form of a new JPK_VDEK structure informing comprehensively tax authorities about all transactions in the company subject to VAT as well as the amount of the tax liability or the amount of VAT refund.

Subject exemption from VAT in 2019

Every year, the Ministry of Finance restricts an increasing number of taxpayers from exercising the right to apply the VAT exemption, i.e. due to sales for the previous year not exceeding PLN 200,000. In the amended art. 113 paragraph. 13 that is, the provision excluding certain goods and services from the possibility of benefiting from the VAT exemption includes new, subsequent goods and services, delivery, which will deprive the taxpayer of benefiting from the VAT exemption. Amendments to VAT in this case relate to the sale of these goods in distance contracts with the simultaneous use of one or more communication channels at the time of concluding the contract. The goods in question are cosmetic and toilet preparations, electrical and non-electrical household appliances, computers, electronic products, optical products, parts for motor vehicles (wholesale and retail). As for services, from January 2019, taxpayers providing factoring services and debt enforcement services will not be able to take advantage of the subjective exemption from VAT.

Taxation of VAT on vouchers in 2019

The government draft act amending the VAT Act of October 10, 2018 includes a definition of a voucher, a specification of the types of vouchers and the rules for their taxation. For the first time, the legislator tries to introduce and shape the regulations not included so far in the VAT Act concerning such a popular issue as the voucher.

The amendment to the act, as a voucher, defines an instrument with which the obligation to accept it is connected, as remuneration or part of the remuneration for the supply of goods or services, in the case of which the goods to be delivered or the services to be performed, or the identity of potential suppliers or service providers are identified in the instrument itself or specified in related documentation, including the terms of use of the instrument

The project also includes the exact identification of the moment of introducing the voucher to the issue, i.e. on the market, and differentiating between:

  1. A single-purpose voucher, i.e. a voucher for which the place of delivery of the goods or services to which the voucher relates and the amount of value added tax or a tax of a similar nature due in respect of the supply of these goods or provision of these services are known at the time of issue this voucher, or
  2. A multi-purpose voucher, i.e. a voucher other than a single-purpose voucher.

The taxpayer who introduces the voucher for the first time will be obliged to tax its value with VAT as if he had provided a service or sold the goods. The same principle will apply to taxpayers who distribute single-purpose vouchers in their own name.

A completely different principle of VAT taxation will apply to multi-purpose vouchers, namely only the actual delivery of goods or the actual provision of services in exchange for a multi-purpose voucher accepted by the supplier or service provider as remuneration or part of the remuneration will be subject to VAT. However, the earlier introduction of this voucher to the market will not be taxable.

If vouchers for various purposes are sold by an intermediary, the intermediation services in the sale of this voucher will be subject to VAT.

The taxable amount for multi-purpose vouchers will depend on whether or not the voucher covers the entire service or good. If a multi-purpose voucher has been redeemed in full, the tax base for this voucher is equal to:

  1. The remuneration paid for this voucher, less the amount of tax related to the goods delivered or services rendered,
  2. The monetary value indicated on this voucher or in the related documentation, less the tax amount related to the goods delivered or services rendered - in the event that remuneration information is not available.

If, on the other hand, the voucher covered part of the supply of goods or services, the tax base for that voucher is equal to the corresponding part:

  1. Remuneration paid for this voucher, less the amount of tax related to delivered goods or services rendered,
  2. The monetary value indicated on this voucher or in the related documentation, less the tax amount related to the goods delivered or services rendered - in the event that remuneration information is not available.

Changes to VAT regarding the taxation of vouchers will come into force from January 2019.

Changes in VAT - cash registers

The draft of the new regulation of the Minister of Finance on exemptions from the obligation to register with cash registers for 2019-2021 introduced a small revolution. Apart from adding new types of activities that have lost the possibility to benefit from the exemption from keeping records with a cash register, the legislator for the first time indicates that the use of the exemption from the cash register is dependent on the taxpayer's issuing an invoice for the entire sale of goods or services. The goods and services covered by the above condition are services related to:

  1. Infrastructure dedicated to the shipment of recyclable hazardous waste,
  2. Treatment of non-hazardous waste for final disposal,
  3. Collection and processing of other hazardous waste,
  4. Sewage disposal and treatment, sewage sludge,
  5. Collecting non-hazardous and non-recyclable waste,
  6. Disposal of radioactive waste and other hazardous waste, with the exception of radioactive waste management services,
  7. Reclamation and other waste management services,
  8. Water treatment and supply.

The exemption from the obligation to use a cash register subject to issuing an invoice for the entire benefit is also to apply to the provision by the taxpayer of telecommunications, broadcasting and electronic services, as well as the sale of electricity, gaseous fuels, steam, hot water and air for air conditioning systems and water in natural form .

In addition, the draft eliminates exemptions from the obligation to use cash registers for:

  1. Services related to the maintenance of order in buildings and the development of green areas, with the exception of services related to the development of green areas,
  2. Services for the transport of people on the Dunajec River by raftsmen from Pieniny,
  3. Road passenger transport by means of vehicles powered by human muscles or drawn by animals,
  4. Acceptance by auditors, in the absence of an appropriate transport document or a document entitling to free or discounted travel, fees related to the performance of passenger transport services and the goods and animals transported by them, and in cases requiring it - also additional fees (this also applies to fees charged on board train by conductors).