Elimination of quarterly VAT - to whom it concerns
The beginning of 2017 brings many changes under the Value Added Tax Act. One of the amendments is the elimination of quarterly VAT. The changes also apply to those who have been able to settle quarterly so far, so it is worth reading the article below to check who must submit monthly VAT declarations from the settlement for January 2017.
Liquidation of quarterly VAT-7K
The liquidation of quarterly VAT-7K settlements has so far covered selected entrepreneurs:
1) those who register for VAT - they cannot settle quarterly for the first 12 months, even if they use the VAT cash method;
2) those who, in a given quarter or in the four preceding quarters, delivered goods with a reverse charge, unless the total value of these deliveries did not exceed, in any month of these periods, the amount of PLN 50,000.
Importantly, the first point concerns those taxpayers who registered for VAT purposes after September 30, 2016.
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Art. 15 of the Act on the amendment to the VAT Act The provision of art. 99 sec. 3a point 1 of the Act amended in Art. 1, as amended by this Act, shall apply to taxpayers who have been registered as active VAT taxpayers after September 30, 2016 for monthly periods after December 31, 2016. |
Example 1
The entrepreneur set up a business on September 1, 2016. On the same day, when submitting VAT-R, he registered as an active VAT payer and chose quarterly settlement. Can the entrepreneur continue the quarterly settlement in 2017?
Yes, as registration for VAT took place before September 30, 2016.
Example 2
The entrepreneur set up a business on September 1, 2016. The first two months he acted as a taxpayer exempt from VAT, and on November 2, 2016, he submitted VAT-R, registering as an active VAT taxpayer. He chose quarterly settlement. Due to the change in regulations, from January 2017, it switched to monthly settlement. Can an entrepreneur return to quarterly settlement in 2018?
Yes, provided that it does not sell goods with a reverse charge, because the period of 12 months has passed.
Example 3
The entrepreneur started his business on December 21, 2017. On the same day, when submitting VAT-R, he registered as an active VAT payer and chose a monthly settlement. Can an entrepreneur switch to quarterly settlement in 2018?
No, as it has not yet been 12 months from the date of registration for VAT purposes.
Liquidation of quarterly VAT-7D
The changes also included the liquidation of settlements for quarterly periods concerning taxpayers other than small taxpayers. For the settlement for the fourth quarter of 2016, they could submit quarterly VAT-7D returns. Currently, they no longer have such opportunities.
Elimination of quarterly VAT-EU
The elimination of quarterly VAT-EU is obligatory for everyone from the settlement for January 2017. In addition, taxpayers settling intra-Community transactions lost the possibility of submitting VAT-EU declarations on paper by the 15th day of the month to oblige everyone to send them electronically with an extended submission deadline by the 25th day of the month following the one for which the information is submitted.
Liquidation of quarterly VAT-27
The changes in the regulations also included information summarizing domestic turnover related to the reverse charge. The possibility of the quarterly VAT-27 has been abolished in favor of submitting this information for monthly periods.
