Business owners may start to struggle with settlements! Check what changes will bring the end of VAT declarations that come into effect this year.
VAT returns will be forgotten and replaced by a single control file.
The year 2020 began with the slogan of changes in VAT. The single control file is a method of reporting data to the treasury known since 2016. It has become such a common tool of officials and an effective form of control that the Ministry of Finance decided to replace VAT declarations with a new JPK_VAT file. The regulation on this matter has already been published in the Journal of Laws. As estimated by the legislator, changes to VAT will affect over 1.7 million taxpayers.
What is a Standard Audit File (SAF)?
The single control file is a set of data that companies must provide to the treasury in an appropriate structure. JPK files are sent in the XML structure, which requires companies to implement electronic accounting. Currently, all companies have to report data to officials as part of JPK files. At the request of the tax office, data on tax books, warehouse, invoices, tax revenue and expense ledger, as well as revenue records are sent. The JPK_VAT file, which is a reflection of transactions made by companies, must be sent each month. This tool has become so common and, according to the tax office, effective that the modernized JPK_VAT will replace the tax returns.
New JPK_VAT. From when?
The new JPK file will replace two declarations: VAT-7 and VAT-7K. These are forms that have been submitted by all active VAT taxpayers so far. VAT payers who pay monthly submit the VAT-7 form, and those who pay quarterly - VAT 7-K.
The largest companies that are required to submit these declarations today will have different obligations from April 1, 2020. They will submit a new JPK_VAT, which will also contain data from the declarations known today. From July 1, 2020, the new JPK_VAT will also be submitted by other taxpayers, i.e. small, medium and micro companies.
What data will be in the new JPK file?
The new structure is to include two parts: declarations and records. As the Ministry of Finance assures, the combination of the JPK_VAT file and the declaration is to simplify settlements with the tax office and reduce the reporting burden on VAT. JPK_VAT will include:
- a set of information about purchases and sales, which results from the VAT records for a given period,
- items from the current VAT-7 (VAT-7K) declaration,
- additional data needed to analyze the correctness of the settlement.
The file structure provides additional information that we have not included in the VAT declaration so far. Among them we can find:
- product group code (13 groups)
- additional fields for the type of transaction made,
- information on transactions with related entities.
According to the Ministry of Finance, entrepreneurs obliged to send JPK_VAT will send only one file, which will contain all the required information. JPK_VAT will be submitted only in an electronic version each month within the deadline - invariably - by the 25th day of the month for the previous month. The new JPK_VAT file will apply in two variants, similar to the VAT-7 declaration known today: JPK_V7M - for taxpayers who pay monthly and JPK_V7K for those who pay quarterly.
New JPK_VAT. File transfer rules
Taxpayers who pay quarterly will settle accounts on a different basis than those submitting JPK_V7M each month. Taxpayers settling quarterly accounts will send JPK_V7M, but they will only fill in the registration part for the first two months of each quarter. However, after the end of the quarter, they will complete the registration part for the third month of the quarter and the JPK_VAT declaration part for the entire quarter.
Monthly billing example
JPK_VAT for January - the entrepreneur will it send by the 25th of February
JPK_VAT for February - the entrepreneur will send it by the 25th of March
JPK_VAT for March - the entrepreneur will send by the 25th of April
An example of a quarterly settlement
JPK_VAT only the registration part for January - the entrepreneur will send by February 25
JPK_VAT only the registration part for February - the entrepreneur will send by March 25
JPK_VAT the registration part for March and the declaration part for January, February and March - the entrepreneur will send by April 25
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