The whitelist of VAT taxpayers was introduced in Poland to increase transparency and security of business transactions. Below are details on the whitelist, such as how to report an account to it, check if you are on it, and why you should be on it.
VAT whitelist - what is it?
The VAT whitelist is an official register maintained by the National Tax Administration that contains information about VAT taxpayers. It includes data on companies registered as active VAT taxpayers and those that have been removed from the register or re-registered. The list was introduced on September 1, 2019, as part of the Law on Amendments to the VAT Law and Certain Other Laws. Its primary purpose is to enable businesses to check the reliability of their contractors and reduce the risk of tax fraud.
How to report an account to the whitelist of VAT taxpayers?
To report an account to the whitelist of VAT taxpayers, you must first ensure that the business account you want to report is a checking account held at a bank or SKOK. Then follow a few simple steps:
- Register the business - Every entrepreneur must register as an active VAT taxpayer. To do this, submit a VAT-R registration application to the tax office.
- Report the bank account - The company's bank account should be reported to the tax office. This can be done by submitting an NIP-8 form (for sole proprietors) or an NIP-2 form (for other entities). These forms are available on tax offices' websites and on the e-Declarations service.
- Update data in CEIDG or KRS - If the bank account changes, the entrepreneur must update his data in the Central Register and Information on Economic Activity (CEIDG) or the National Court Register (KRS).
The data will be automatically transferred to the VAT whitelist once the bank account is declared and the business is registered.
VAT whitelist - how do I check if I am on it?
Checking whether you are on the VAT whitelist is very simple. This can be done in several ways:
- Tax portal - The National Tax Administration's official website has a dedicated tax portal where you can check the status of your account. To access it, you need to enter your company's VAT ID or REGON number.
- Banking services - Many banks offer their customers the ability to check whether their accounts are on the whitelist of VAT taxpayers. It is a good idea to contact your bank and ask about such a service.
- Accounting programs - Some accounting software and ERP systems have a function to verify accounts on the VAT whitelist. This allows businesses to monitor their accounts' status in real time.
Why is it a good idea to be on the whitelist of VAT payers?
Being on the VAT whitelist has several benefits that can significantly affect a company’s operations. Here are some of them:
- Credibility in the eyes of contractors - Businesses on the whitelist are seen as reliable and trustworthy business partners. Contractors are assured that the company is registered as an active VAT payer and meets all formal requirements.
- Security of transactions - Conducting transactions with companies on the whitelist reduces the risk of tax fraud and abuse. As a result, unpleasant legal and financial consequences can be avoided.
- Settlement facilitation - Businesses on the whitelist can benefit from simplified settlement procedures. For example, they may be exempt from sending additional documents or VAT statements.
- Protection from sanctions - Transactions conducted with companies outside the whitelist may involve the risk of sanctions by the tax authority. Therefore, it is worth ensuring that we and our contractors are on the VAT whitelist.
In conclusion, the VAT whitelist is an essential tool that helps entrepreneurs run safe and transparent businesses. It minimizes the risk of tax fraud and ensures your credibility in the eyes of your contractors. If you still need to submit your account to the whitelist, it is worth doing so as soon as possible to enjoy all the benefits of being on the list.
