SAF-T Poland and 2020 update

The obligation to submit SAF-T files in Poland started on 1 July 2016 for large taxpayers, and on 1 January 2018 for all taxpayers.

Starting October 1, 2020, taxpayers are no longer required to submit both the SAF-T (JPK_VAT) file and the VAT return separately. A new SAF-T file has to be sent. That file should contain both the data from the VAT register and the data from the current VAT return. The Polish simplification will result therefore that the taxpayer will send only one JPK_VAT file but performing two obligations at the same time.

The Polish tax authorities will verify each VAT settlement automatically in terms of the correctness of the declared VAT amounts without the involvement of the taxpayer. The new schema comes in force starting 1 October 2020 for all taxpayers.

We have anticipated also on new client needs in the VAT return process. We have developed for you a premium package to support the Polish VAT return and billing process by developing complementary add-ons:

  1. We developed an add-on that displays real-time display currency exchange rates to support VAT, billing and payment processes.

  2. Standard SAP does not support specific Polish tax point rules. During the VAT return process lots of manual changes have to be made outside SAP to realize that these Polish tax requirements are met. KG developed an add-on that enhances standard SAP with extra tax point logic that avoid these manual activities outside SAP.

  3. Besides that we developed an add-on for the Polish Whitelist. Bank account numbers of suppliers are automatically checked on correctness. Our Polish Whitelist add-on avoids joint liability of the seller’s VAT position and expenses remain deductible for Corporate Income Tax.

A short demo

What is an SAP add-on?

An SAP add-on enhances standard SAP itself.

Add-on components are extra functionalities that do not come with the main SAP product. Different organizations have different requirements. SAP has recognized that and facilitated that additional functionality can be added and that such functionality as a component can be integrated with standard SAP.

An add-on is permitted by SAP – the code 'ABAP' is written and transported where SAP allows it. That means these add-on components sit above the core and access the same dictionary objects or repository objects and perform the required functionality. It contains custom authorization objects according to SAP standards.

SAP add-on solutions are, therefore, without an external interface or external software and can be implemented with minor or no SAP impact in any other area. An SAP add-on does not change the programming code of SAP. As a result, SAP upgrades do not lead to any problems, and maintenance is straightforward.

Additional functionality is added to standard SAP:

'User-friendly, manageable, scalable, extendable, upgradeable, reliable, sustainable, SAP integrated, VAT compliant, audit trail'

Take aways 

Formal support and active involvement of senior management

Optimum process improvement or business transformations will not likely be realized by the sum of individual independent efforts.The risk is that individually everybody knows what needs to be done within his or her own area of expertise, but what is lacking is overall direction and thus progress.

Anticipate what users would want

We combine technical knowledge with industry understanding and knowhow of technologically advanced tools and methodologies available in the market or developed by ourselves.

What do we like to achieve

  • Focus on tax processes that could be improved
    • Manual process: same data requests are made by different stakeholders
  • As Is assessment
  • Anticipate future changes and the data needed
    • What are tax trends?
    • What is happening locally and what should be considered across jurisdictions where you operate?
    • Anticipate new stakeholders and their data needs or requests (internal and external)
  • Define scope and actions for short, mid and long term
  • Write business case for change
  • Realize sponsorship for implementation

‘As is’ assessment, actions and business case

  • What tax data is requested and by whom?
  • What tax process can be improved and what can be automated?
    • CIT, VAT, tax data warehouse
  • What is the Return on Investment?
    • Hard saving: process improvement
    • Meeting (new) tax requirement
  • What systems are in use: SAP, Oracle, etc
    • By which entities?
  • How many end-use computing tools (e.g. excel spreadsheet) do we have?
  • How do we avoid an ad-hoc solution?
    • Understand the bigger picture
    • Real problem and not the symptom

Risk and reward

Technology-related tax risk: understand and address the potential harms and benefits of (new) technology.

Technology tools & systems integration

Ascertaining proper IT support for ensuring efficient, timely and reliable reporting.

Change and project management

VAT should be considered in every aspect of the process, from concept through completion and beyond. Managing by design — looking at any process or transaction from end to end and factoring in all the requirements and controls essential to designing and optimizing a compliant VAT process.

Effective communication and teaming

We speak the language of the business and IT and no translation is needed.

Set up a project plan

  • Set up a project charter that will take effect preferable during feasibility but ultimately during design
  • Write a business case and problem statement
  • Define scope of the project
  • Define objectives and goals of the project
  • Involve stakeholders and define priorities
  • Set measurable milestones
  • Ensure that the right sponsors provide buy-in.
  • Identify (project) risks and how to manage them
  • Jointly validate and refine the project plan and develop a roadmap to success
  • Hold regular meeting to track progress of the various work streams