Table of Contents

Third-party Transactions

Polish law obliges three business entities operating in a supply chain to properly post and report the VAT amount calculated for third-party transactions including delivery of goods directly from the first to the third entity in the supply chain.

When deliveries take place in different European Union countries, the following processes are handled depending on the taxpayer’s role is in the supply chain:

  • standard intra-Community supply of goods to the first entity (entity 1), and
  • intra-Community acquisition of goods for a third entity (entity 3).

Therefore, entity 2 that is the intermediary in this supply chain is required to report:

  • intra-Community acquisition (purchase) from entity 2, and
  • an intra-Community transaction for entity 3. This transaction may settled within a simplified or full process.

Setup

In order to correctly post and report third-party transactions in the JPK_VAT with declaration file, it is necessary to define the appropriate settings. The following steps describe how to report a transaction for entity 2 by using the simplified procedure.

To define the settings required to generate a JPK VAT file with information about third-party transactions:

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter VAT Product Posting Groups, and then select a related link.
  2. On the VAT Product Posting Groups page, create a group for the purchases made by entity 2 from entity 1 and another group for sales transactions made by entity 2 to entity 3 within a supply chain of the third-party transaction.
  3. Choose the Lightbulb that opens the Tell Me feature icon, enter VAT Posting Setup, and then select a related link.
  4. On the VAT Posting Setup page create a new combination of the VAT Business Posting Group field with the EU selected and the VAT Product Posting Group field with the VAT Calculation Type field set to Reverse Charge that is to be used for posting purchase invoices from entity 1. Repeat this step to create a separate combination for the VAT Business Posting Group field with the EU selected and VAT Product Posting Group field with the VAT Calculation Type field set to Reverse Charge that is to be used for posting sales invoices from entity 3.
  5. Choose the Lightbulb that opens the Tell Me feature icon, enter SAF-T VAT Elements Calc. Setup, and then select a related link.
  6. On the SAFT VAT Elements Calculation Setup page, choose the Update action to insert new lines with settings. Enter the following settings:
    1. Third-party transactions - purchases from entity 1
    • Sales Rev. Charge VAT Amt. Element - K_23
    • Sales Rev. Charge VAT Base Element - leave the field blank.
    1. Third-party transactions - delivery to a third party:
    • Sales VAT Amount Element Name - K_11**
    • Sales VAT Base Element Name - leave this field blank.

Generating a JPK_VAT with Declaration File

To report third-party transactions in the JPK-VAT with decalration file:

  1. Post a purchase or sales invoice in the standard way, using the appropriate combinations of posting groups and remember to add the correct VAT attributes.
  2. Generate a JPK_VAT with declaration file for the selected period.
  3. In the P_66 field enter 1, which means that the taxpayer performed the activities referred to in Article 136 of the VAT Act, i.e. the entity was the second VAT payer and performed a third-party transaction within the simplified procedure.

See Also

Setting up VAT Business and Product Posting Groups

SAF-T VAT Area Elements Setup

Generating a JPK_VAT file with the Declaration

VAT Attributes