7 CHANGES IN VAT: Whitelist - favourable changes for taxpayers

On 1 July 2020, there are new favourable changes to the regulations on Whitelist of VAT taxpayers. What is important, they are to be applied to the payment of liabilities made from 1 January 2020 (retrospectively).

The new regulations extends in favour of taxpayers the exceptions with regard to the inclusion of revenues, costs and joint and several liability in case of a payment made to accounts not included in the White list.

In particular the changes are referring to:

1. clarification of the scope of non-application of negative tax consequences in cases of taxpayers’ payment due to Intra-Community acquisition of goods, import of goods, import of services or delivery of goods settled by the buyer.
2. exclusion of negative consequences with regard to PIT and CIT in the event of making payments using the split payment mechanism, even if the payment were made to an account not indicated in the Whitelist.
3. changes facilitating the submission of notifications, which is of significance for a taxpayer willing to make a payment to an account not included in the Whitelist i.e.
   a. change of the deadline for submitting the notification from 3 days to 7 days (during the period of the epidemic threat and the epidemic state announced in connection with COVID-19, the deadline for submitting the notification was extended to 14 days from the date of the transfer order),
   b. change in the competence of the head of the tax office which the notification is to be made to, from the one competent for the seller to the one competent for the payer,
   c. sufficient submitting only one notification upon the first payment by bank transfer to the given account.
4. excluding negative consequences to payments (under some conditions):
   a. used to make settlements arising from cash receivables acquired by a bank or a credit and savings union, or
   b. used by a bank or a credit and savings union to collect receivables from the buyer of goods or service recipient for the supply of goods or services, confirmed by an invoice, and to transfer it in whole or in part to the supplier of the goods or service provider (factoring activity), or
   c. to accounts of a bank or a credit and savings union, which are not settlement accounts, used for the purposes of the bank’s or credit unions own business.