EE - new designation in the file JPK_V7
From October 1, 2020, active VAT taxpayers have changed the scheme of the current reporting method, mainly due to the new JPK_V7 structure. The new structure introduced the obligation to mark types of sales and purchases in the file. The industry dealing with the provision of telecommunications, broadcasting and electronic services is obliged to mark sales with the EE symbol. Let's check when to use them!
Who is the new JPK_V7 for?
The new structure of the single control file, effective from October 1, 2020, is required for active VAT taxpayers who were previously required to submit VAT returns and JPK_VAT files. The JPK_V7 structure has completely replaced VAT declarations and JPK_VAT files, which means that after October 1, 2020, these declarations are no longer accepted by tax offices.
The new JPK file is available in two versions:
- for taxpayers who pay monthly, it is JPK_V7M;
- for quarterly taxpayers it is JPK_V7K.
Taxpayers who settle accounts quarterly submit the JPK_V7 file every month, while the file for the first two months of the quarter does not contain the declaration (value) part and does not require payment of VAT. Only in the third month of the quarter, the file will have a declaration part, indicating the value of the tax due and charged for the entire quarter. The JPK_V7 file (JPK_V7M and JPK_V7K versions) must be submitted by the 25th day of the next month for the previous month. The JPK_V7 file consists of two parts: registration and declaration. The registration part contains information about the sales and purchase invoices entered in a given period, identifying transactions, i.e. data of suppliers and buyers, document number, date of issue, sale, value and designation of the transaction. On the other hand, the declaration part contains mainly information on the amounts of due and input tax, taking into account the types of transactions, such as, for example, intra-Community acquisition of goods, import of services or relief for the purchase of a cash register. In simplified terms, it can be assumed that the data contained in the registration part correspond to the data contained in the JPK_VAT file, while the data contained in the declaration part - to those included in the VAT declaration.
EE marking - when should it be used?
The new JPK_V7 file requires taxpayers to mark specific types of transactions, including some goods that are subject to sale. Taxpayers selling telecommunications, broadcasting or electronic services to non-taxable individuals are required to mark sales invoices documenting the above services with the EE symbol from October 1, 2020. The marking is entered by indicating the number 1 in the field corresponding to EE. The designation is added in the record part of the JPK_V7 file. Each invoice shown in the registration part of the JPK_V7 file has a group of symbols assigned on the side of the output tax. If a symbol should be included, it is indicated with the number 1, otherwise it is left blank. The markings are intended to more accurately verify transactions made by taxpayers. With regard to the EE marking, it is largely about controlling the limit, the exceeding of which necessitates registration for VAT MOSS or registration for VAT purposes in another Member State.
From July 1, 2021, the EE designation will be marked in the JPK file for the period from July to December 2021 (or for the third and fourth quarter) in the case of intra-Community distance sales of goods that are located in the territory of the country at the time of commencement of their shipment or transport . After this period, special indications under the OSS procedure will apply, more on this topic in the article: VAT OSS - VAT settlement rules as part of the e-commerce package.
VAT MOSS, or when does the special procedure take place?
Taxpayers selling telecommunications, broadcasting and electronic services use the VAT MOSS procedure to settle sales transactions in their country. Pursuant to Art. 28k paragraph. 1 of the VAT Act, in the case of the sale of telecommunications, broadcasting and electronic services to private persons, the place of supply is the place where the buyers have their registered office, permanent residence or habitual residence. The above would mean the necessity to register the seller in every Member State of the European Union in which the buyer of the service lives or stays. The MOSS VAT procedure was created to simplify this type of transaction. Settlement of transactions is based on the VAT rates of EU countries, with the difference that the taxpayer does not register for VAT in any of the Member States and settles accounts with the Polish tax authorities.
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From January 1, 2019, the legislator introduced another convenience in the settlement of the indicated transactions. Pursuant to Art. 28k paragraph. 2 of the VAT Act, the taxpayer will not have to register for VAT MOSS and, consequently, will be able to tax services in accordance with national regulations and rates, if he meets certain conditions:
- the taxable person who is the service provider is established or, in the absence of an establishment, has his permanent address or usually resides within the territory of a single Member State only;
- telecommunications, broadcasting and electronic services are supplied to private persons established, domiciled or habitually resident in the territory of a Member State other than that of the Member State referred to in point 1;
- the total value of telecommunications, broadcasting and electronic services provided to the indicated private persons, less the amount of tax, did not exceed, during the tax year or in the previous tax year, the amount of EUR 10,000 or its equivalent expressed in the national currency of the Member State referred to in point 1, but in the case of a service provider with a registered office, or in the absence of such a registered office - permanent residence or usual place of residence, only in the territory of the country, the PLN equivalent of the amount in EUR is PLN 42,000.
If, during the tax year, the amount of PLN 10,000 euro / 42 thousand PLN is exceeded, the taxpayer is obliged to register for the MOSS procedure and tax the transaction at the rates of the buyer's Member States or may register in the buyer's country to tax the transaction. The above change applies from the service for which this amount was exceeded. To sum up, the EE designation will not be used in the JPK file for the sale that took place after the limit was exceeded. The sale after the limit is exceeded will be subject to the VAT MOSS procedure, if the taxpayer registers for it, or will be taxed in the buyer's country. The MOSS VAT procedure is not marked in the JPK file.
Automatic marking with EE in the wFirma.pl system
The wFirma.pl system users can use the automatic marking with the EE symbol of transactions related to the provision of telecommunications, broadcasting and electronic services for private persons from other EU countries. To make it possible, it is necessary to mark the type of sale in the tab SETTINGS »TYPES OF TRANSACTIONS IN JPK_V7. In the case of the provision of telecommunications, broadcasting and electronic services, mark the EE option in the SUBTARK SPECIAL TRANSACTIONS and save.
Then it will be possible to use this sign in relation to the sale. More information on the operation of markings for specific transactions can be found in the help article: Markings of specific types of transactions in JPK_V7.