Failure to justify the VAT correction in practice
The taxpayer is required to calculate and declare the amount of VAT due for a given period. If there is an error in the submitted declaration, he has the right to submit a correction. In accordance with the amendment to the Tax Code, since 2016, there has been a change in the submission of the justification for the correction. Read the article and find out if it is possible not to justify the VAT correction.
When should I submit a correction to my tax return?
Pursuant to Art. 81 § 1 of the Tax Ordinance, taxpayers may correct a previously submitted tax declaration, if it contains:
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formal errors causing difficulties in identifying the person submitting the declaration, e.g. lack of the taxpayer's signature,
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accounting errors, e.g. in tax calculations or in the amount of the tax base.
Submitting a correction of the tax declaration results in the failure to punish the tax offense. What's more, the tax declaration can be corrected any number of times, and the tax declaration expires after 5 years, counting from the end of the year in which the declaration is submitted.
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Important! The correction of the tax declaration should be submitted together with the possible payment for the tax arrears. |
Example 1.
The taxpayer submits the tax return for 2014 in April 2015. Thus, the question arises, up to which year can the submitted statement be corrected?
A taxpayer who submitted a tax return for 2014 in 2015 may correct it by the end of 2020. This means that the tax declaration can be corrected for 5 years from the end of the year in which it is submitted.
No justification for VAT correction from 2016
According to the amendment to the Tax Ordinance, the declaration correcting the tax declaration does not now need to be accompanied by a justification for the correction - i.e. a letter explaining what elements have been changed, why and to what extent. This rule applies to all corrections that were submitted from January 1, 2016. However, the fact that there is no obligation to submit a justification for a VAT correction does not mean, however, that it cannot be done voluntarily.
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Attention! However, it should be remembered that the tax authority, as part of the verification activities, may request the taxpayer (also in writing) to provide explanations in connection with the submitted correction. |
In what situations will the submission of a correction of the declaration be ineffective?
As mentioned before, errors in the tax return can be corrected by submitting corrections. However, in some situations, the complex correction of the declaration will not be effective. Pursuant to Art. 81B § 1 point 1 of the Tax Ordinance, the correction of the declaration is suspended for the duration of the tax audit, fiscal inspection or tax proceedings. The correction submitted at that time has no legal effects. It is worth knowing that the right to submit a correction still applies after the completion of the inspection or procedure in the scope not covered by the decision determining the amount of the tax liability.
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Important! During the inspection period, the taxpayer has the right to submit a correction of the declaration for other periods not covered by the inspection procedure. |
Summing up, the change in regulations has made the submission of a tax return correction much easier. According to the amendment to the Tax Ordinance, from January 1, 2016, there is no longer any obligation to submit a justification for a VAT correction. Please note that the submitted tax return can be corrected for 5 years from the end of the year in which the tax return was submitted.
