Poland

Split payment of VAT amount

In Poland, the split payment mechanism is mandatory for domestic sales that meets these conditions:

  • At least one item of the invoice is included in Appendix No. 15 of the Polish Value-Added Tax Act (concerning the supply of goods and services for which the reverse charge was applied before 1 November 2019)
  • The gross sales value is at least 15.000 PLN
  • The sale is made between taxable persons – B2B, regardless of whether the buyer is an active or exempt VAT taxable person
  • Tax liability, supply of goods or services, and the invoice date is not before 1 November 2019

Tax payments must be made using a dedicated payment file layout. To support this, an additional Elixir report for split payment of VAT amount has been added in the LP POL package.

Complete these steps:

  1. Set up the new report as a localized report with these settings in the Payment/Receipt Method Reports (tfcmg0630m000) session:
    • Payment Report: Split Payment for VAT Amount (lppol923001000)
    • Country: POL
    • IBAN Enabled: Yes
  2. Initialize the report
  3. In the Payment/Receipt Methods (tfcmg0540m000) session, create a new payment method with these settings:
    • Payment Report: Split Payment for VAT Amount (lppol923001000)
    • Composing Option: Invoices
    • Composing Limit: 1
    • IBAN Account Required: Yes
    • Foreign Currency Allowed: No
    • Currency: PLN
  4. Select a payment device for which the Device Type is set to Append to file and the Page Length is 1. Any other length results in unnecessary blank lines at the end of the file, preventing the file from importing into the bank system.

Split payment for invoices in foreign currencies

In Poland, it is common practice to send domestic invoices in another currency than the local currency (Polish Zloty). If such an invoice is received, the net amount of the invoice can be paid in the foreign currency. However, the tax amount must be paid in the local currency using a special payment file structure. This so-called split payment mechanism has now been added to the standard and is active only if the localization parameter for Poland is selected for the company in the Implemented Software Components (tccom0500m000) session.

If the split payment functionality is used, the payment to the business partner is automatically split into the net amount payable in the invoice currency and the VAT amount payable in the home currency. The net amount of the invoice is paid from the company bank relation stated in the payment advice, to the bank account of the business partner. The VAT amount is paid from the VAT subaccount associated with this bank relation, to the VAT bank account specified for the business partner.

This functionality includes these new features:

  • In the Payment/Receipt Methods (tfcmg0540m000) session, a payment method must be specified where the Polish payment report is for VAT amounts. The currency of the payment method must be equal to the home currency.
  • In the Payment Terms (tcmcs0113s000) session, the Distribute Tax Based on Schedules option has been added. This option controls the split payment functionality for the purchase invoice. Additionally, the VAT Payment Method field has been added in which the payment method for VAT amounts must be specified.
  • In the Bank Relations (tfcmg0110s000) session, the VAT Bank Relation field has been added. This field is used to set up the bank relation for the VAT payments in the home currency. This bank relation is used instead of the original bank relation on the invoice, which is still used for the net amount in the foreign currency.
  • In the Pay-to Business Partner (tccom4124s000) session, the VAT Bank Account field has been added. In this field, you can specify the business partner's bank account that is used for VAT payments in the home currency.

When registering a purchase invoice with a payment term set up for split payment, LN automatically creates a payment schedule with two lines: one with the net amount in the foreign currency and one with the VAT amount in the home currency. If the payment method also includes a payment schedule with a distribution in percentages, LN generates net-amount lines in the foreign currency and tax amount lines in the home currency based on this distribution. The VAT lines in the home currency are excluded from the write-off currency differences functionality.

In the Payment Schedules (tfacp1103m000) session, you can check the generated schedule lines. The net amount lines are generated with the default supplier's bank and payment method of the invoice. The VAT amount lines are generated with the default supplier's VAT bank and the VAT payment method.

The schedule line data is used when the payment selection is run. This ensures that the net amounts are paid in the invoice currency via the payment method linked to the invoice. The VAT amounts are paid in the home currency using the VAT payment method with the special VAT payment file layout.

Whitelist

From January 1, 2020, transactions of more than PLN 15,000 paid by bank transfer may only be made to bank accounts that are included in the list of VAT payers (the so-called white list or KAS database [ Krajowa Administracja Skarbowa – National Tax Administration]). According to the Polish Ministry of Finance, such a payment is safe and has no negative financial consequences.

This functionality is now supported and includes these tasks:

  • Setting up online verification in the Polish Localization Parameters (lppol0100m000) session
  • Verifying the taxpayer status in the Verify Business Partner Online (lppol4250m000) session
  • Verifying bank accounts in these sessions:
    • Verify Business Partner Bank Accounts (lppol4250m100)
    • Print Business Partner Verification Log (lppol4450m000)
    • Business Partner Verification Log (lppol4550m000)
  • Creating bank accounts in the Import Bank Accounts (lppol4550m100) session

Currency exchange rates

Importing currency exchange rates from the European Central Bank and National Bank of Poland is now supported.

You can use the Exchange rate Provider (tcmcs1670m000) session to initialize the required parameters for the European Central Bank and National Bank of Poland. You can also configure services and currencies to import.

You can use the Import Currency Rates (tcmcs1270m000) session to import the currency rates from a specific provider. The imported rates are available in the Currency Rates (tcmcs0108m000) session.

Elixir payment format for Citibank

In Poland, the standard Elixir payment format is used. However, the Citibank uses its own variant of this payment standard. This specific payment format has now been added to LN.

Complete these steps:

  1. Set up the new report as a localized report with these settings in the Payment/Receipt Method Reports (tfcmg0630m000) session:
    • Payment Report: CitiDirect SEPA (Poland) (lppol923000800)
    • Country: POL
    • IBAN Enabled: Yes
  2. Initialize the report.
  3. In the Payment/Receipt Methods (tfcmg0540m000) session, create a new payment method using the CitiDirect SEPA (Poland) (lppol923000800) payment report