Service-Tax

VAT 2014 (part 1) - VAT tax obligation 2014 part AND

2014 is a time of extensive changes in VAT. The most important ones include the complete repeal of Art. 19, which so far defined the moment when the tax obligation arose and the addition, following a new art. 19a, explaining this issue on completely new principles.

Delivery and performance of services

The general rule about the moment when the tax obligation arises is included in Art. 19a paragraph. 1 of the VAT Act. According to its content, the tax obligation under the tax on goods and services arises when the goods are delivered or the service is provided, unless the taxpayer has received a prepayment prior to this event. At this point, it is worth emphasizing that the current connection of the moment of the tax obligation with the date of issuing the invoice has been abandoned.

Clarification by the Ministry of Finance

"Delivery of goods takes place upon the transfer of the right to dispose of them as owner, for example:

the goods are issued directly to the buyer or a person designated by him - the goods are delivered upon their release;

the goods are delivered by the supplier's own transport or hired by him, to the place indicated in accordance with the contract by the buyer - the delivery of the goods takes place, as a rule, upon delivery of the goods to the place indicated by the buyer;

the goods are left in the place indicated by the buyer (e.g. the buyer asks for the goods to be left - for a fee or free of charge - for a specified period of time in the supplier's warehouse) - the goods are delivered when the goods are left at the disposal of the buyer in an agreed manner;

the goods are sent by the supplier to the buyer via a carrier, courier, mail, etc. (the risk of losing the goods is borne by the buyer) - the delivery of the goods takes place when the goods are released to the entity that is obliged to deliver them, because at that moment the supplier transfers the right to dispose of the goods as owner.

Generally, the moment of >> delivery of goods <> release of goods <<. "

Example 1.

The ANGEL company is an active VAT payer that settles monthly accounts. On January 29, 2014, a sales invoice was issued, but the service was not provided until February 3. When will the VAT obligation arise?

According to the general rule, the tax obligation under VAT will arise on February 3, i.e. when the service is provided.

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Example 2.

The GWIAZDOR company is an active VAT payer that settles monthly accounts. On January 25, 2014, the company performed the service. On the other hand, the sales invoice was issued on February 15, 2014 (in accordance with Article 106i (1) of the VAT Act). When will the VAT obligation arise?

The tax obligation will arise on the day the service is provided, i.e. on January 25, 2014 - in accordance with the general rule.

Partially accepted services

The issue of partially performed services has been regulated in Art. 19a paragraph. 2 of the VAT Act. In their case, the tax obligation arises when the service is performed, and the service is also considered to be performed in the case of the performance of a part of the service for which the payment was determined.

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Example 3.

In January 2014, ANGEL entered into an agreement with GWIAZDOR, in which it undertook to prepare documents enabling it to apply for a subsidy. It was agreed that this project will consist of two parts:

first - business plan,
the second - filling in the application and other application documentation.

According to the arrangements, the first part is to be handed over by February 28, 2014, the second - by March 31, 2014. For each part, ANGEL will receive the payment specified in the contract within 7 days of the date of delivery of a specific part. When will the VAT obligation arise?

The tax obligation under VAT will arise respectively when each part is handed over, i.e. on February 28 and March 31, respectively.

Continuous services and deliveries

Services for which consecutive payment or billing dates have been agreed

In this case, the tax obligation in VAT also arises upon the performance of the service. At the same time, it is worth noting that a service for which, in connection with its provision, consecutive payment or settlement dates have been agreed, shall be deemed to have been performed at the end of each period to which these payments or settlements relate, until the provision of this service is completed. This issue is regulated in the first sentence of Art. 19a paragraph. 3 of the Act.

Example 4.

The ŁATA company concluded an annual contract with the GWIAZDOR company, in which it undertakes to provide cleaning services (cleaning). The arrangements show that the parties will make monthly settlements. Payment will be made by the 15th of the month for the previous month. When will the VAT obligation arise?

According to the first sentence of Art. 19 paragraph 3 of the VAT Act is established on the last day of each month.

Continuous services performed for a period longer than 1 year

The date of providing the service is here the moment when the tax obligation arises under the VAT Act. It is worth emphasizing that the service provided on a continuous basis for a period longer than one year, for which due to its provision in a given year, payment or settlement deadlines do not expire, is considered to be performed at the end of each tax year, until the provision of this service is completed.

Example 5.

The entrepreneur, who is an active VAT taxpayer, concluded an agreement with ANGEL, in which he undertakes to acquire customers from February 2014 to April 2015. As it results from the arrangements, payment for the service will be made after the end of the contract. When will the VAT obligation arise?

The tax obligation under VAT should be shown at the end of the tax year, i.e. on December 31, 2014 and on the date of completion of the service, i.e. April 30, 2015.

Continuous deliveries

For the supply of goods, the same provisions apply as in the case of services for which consecutive payment or settlement dates have been established, and continuous services performed for a period longer than 1 year (specified in Article 19a (3) of the VAT Act).

Example 6.

The MAJA company concluded an annual contract with the GWIAZDOR company, in which it undertakes to deliver the goods. The arrangements show that the parties will make monthly settlements. Payment will be made by the 15th of the month for the previous month. When will the VAT obligation arise?

According to the first sentence of Art. 19 paragraph 3 of the VAT Act is established on the last day of each month.

Example 7.

The entrepreneur, who is an active VAT taxpayer, concluded an agreement with the PAULA company, in which he undertakes to deliver goods from February 2014 to April 2015. As it results from the arrangements, payment for the goods will be made only after the end of the contract. When will the VAT obligation arise?

The tax obligation under VAT should be shown at the end of the tax year, i.e. on December 31, 2014 and on the delivery completion date, i.e. April 30, 2015.

Prepayment, advance payment, down payment

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If, prior to the delivery of the goods or the performance of the service, all or part of the payment has been received, in particular: prepayment, advance payment, advance payment, installment, construction or housing contribution prior to the establishment of a cooperative right to a dwelling or premises for another purpose, the tax obligation in VAT arises in accordance with art. .19a paragraph. 8 of the VAT Act, i.e. upon its receipt in relation to the amount received. The exception in this situation is Art. 19a (5) (4) of the Act (including media).

Example 8.

The VAT taxpayer who settled monthly on January 16, 2014 received an order for the products he offered. In order to confirm the receipt, the entrepreneur prepared a pro-forma invoice for the amount of PLN 6,000 net. On February 15, 2014, 60% of the contract value was received. The delivery was made on March 1. When will the VAT obligation arise?

The tax obligation for the received advance payment will arise on the day of its receipt (from 60% of the contract value). However, in the remaining part (40% of the contract value), the tax obligation in VAT will arise on the day the goods are delivered.

Receipt of all or part of the payment

Pursuant to Art. 19a paragraph. 5 point 1, the tax obligation in VAT arises upon receipt of all or part of the payment, in the case of:

release of goods by the commissioner to the commission agent under a commission agreement,
transfer of ownership of goods by order of a public authority or entity acting on behalf of such authority in return for compensation,
the delivery of goods carried out in the course of execution (referred to in Article 18 of the Act),
providing, on the basis of separate provisions, at the request of common, administrative and military courts or the public prosecutor's office, services related to court or preparatory proceedings, with the exception of services to which art. 28b, constituting the import of services,
the provision of tax-exempt services in accordance with Art. 43 sec. 1 points 37-41 (including insurance services, credit and loan granting services, services in the field of granting sureties, guarantees and any other security for financial transactions, services in the field of cash deposits).

Importantly, the tax obligation arises in relation to the amount received.

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Provision of construction, construction and assembly services

The tax obligation in the case of providing construction and construction and assembly services to companies arises in accordance with art. 19a paragraph. 5 point 3 letter a of the VAT Act, i.e. at the time of issuing the invoice.

If the taxpayer fails to issue an invoice or issues it late, the tax obligation arises upon the expiry of the invoice issuance deadlines (Article 19a (7)).

Art. 106i sec. 3 point 1

The invoice shall be issued no later than on the 30th day from the date of service provision - in the case referred to in Art. 19a paragraph. 5 point 3 lit. and

Example 9.

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The taxpayer provides construction services to Company Y. The service was provided on February 29, 2014, and the invoice was issued on March 15, 2014. When will the VAT obligation arise?

The tax obligation will arise on February 29, i.e. on the day the service is provided.

Example 10.

The taxpayer provides construction services to Company X. The service was performed on January 2, 2014, while the invoice was issued with a delay - on February 15, 2014. When will the VAT obligation arise?

The tax obligation will arise on February 1, i.e. on the 30th day of the service (an invoice should be issued within this period).

In the event that services are provided to persons who do not conduct business activity, the tax obligation arises on general principles at the time of providing the service.

Of course, if the entrepreneur receives all or part of the payment before the service is performed, the tax obligation will arise at the time of its receipt.

Art. 19a sec. 8

If, prior to the delivery of the goods or the performance of the service, all or part of the payment has been received, in particular: prepayment, advance payment, advance payment, installment, construction or housing contribution prior to the establishment of the cooperative right to a dwelling or premises for another purpose, the tax obligation arises upon its receipt in with regard to the amount received.

Supplies of printed books

A taxpayer supplying printed books about PKWiU ex 58.11.1 (excluding maps and leaflets - and newspapers, magazines and magazines, printed (PKWiU ex 58.13.1 and PKWiU ex 58.14.1) is obliged to report VAT in accordance with Art. 19a (5) (3) (b). The tax obligation arises in the same way as in the case of construction services, ie on the date of issuing the invoice.

If the taxpayer fails to issue an invoice or issues it late, the tax obligation will arise upon the expiry of the invoice issuance deadlines, i.e. on the 60th day from the date of delivery of the goods.

Book printing activities

An entrepreneur engaged in book printing should pay particular attention to the content of Art. 19a paragraph. 5 point 3 lit. c of the Act, according to which the VAT obligation arises at the moment of issuing the invoice (for activities consisting in printing books (PKWiU ex 58.11.1) - excluding maps and leaflets - and newspapers, magazines and magazines (PKWiU ex 58.13.1 and PKWiU ex 58.14.1), with the exception of services to which Article 28b applies, constituting the import of services).

Also in this case, Art. 19a paragraph. 7 of the Act, which emphasizes that in a situation where the taxpayer fails to issue an invoice or issues it late, the tax obligation will arise upon the expiry of the invoice issuance deadlines, i.e. the 90th day from the date of performance of the activity.

If the supply of books or the activities consisting in printing books are performed for a natural person who does not conduct business, the tax obligation will arise on general principles.

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