TAX SECURITY IN YOUR HANDS - SI-WhiteList
Learn how to automate the supplier verification process and protect against tax consequences using SAP.
On September 1, 2019, the so-called whitelist of VAT was published. It contains information about registration, de-registration and status of the VAT payer, as well as the bank account numbers of entrepreneurs and other taxpayer data. Payments to a bank account other than the one indicated on the white list from January 1, 2020 will be sanctioned.
The consequences of not verifying the contractor extend to both the VAT and income tax areas. The joint and several liability with the supplier for his VAT obligations is also significant.
Existing accounting software on the market, including ERP class systems, are not fully prepared to handle the taxpayer’s new obligations, which means that companies are doomed to the enormity of manual work and the resulting consequences. These include the increase in the costs of salaries of accounting department employees, the risk of errors, the risk of data loss or leakage, as well as extensive tax consequences.
Payment of liability to another account than the one indicated on the taxpayer’s white list, in the amount of over PLN 15,000, bypassing the split payment procedure, will result in the loss of the opportunity to count this amount as tax-deductible costs. To avoid unpleasant consequences, it is necessary to check that the account of the contractor is on the white list of the National Tax Administration with each payment. It is important if the bank account is registered in the list on the day of the transfer. This change has a significant impact on accounting processes implemented in enterprises, including a significant increase in their workload. At the same time, the introduction of the White List of Taxpayers resulted in a significant simplification of access to the contractor’s registration data, which can be used to optimize the processes of creating and modifying data in accounting systems.
In accordance with the provisions contained in the amendment, if the invoice was issued by an entity that does not exist or is not authorized to issue invoices, then the buyer has no right to deduct input VAT. Deduction of VAT from an invoice issued by an unauthorized entity, in the event of a tax audit may result in a taxpayer acting in good faith imposing a higher tax liability to pay.
In order to meet the needs of our clients using SAP software on a daily basis, we have developed a solution that maximally enables the use of data made available by the National Tax Administration.
SI-WhiteList refers to the best practices used by SAP when creating its solutions.
Features and benefits of the software
Our tool is fully integrated with the Client's SAP system and performs the essential functions under the new regulations::
- Verification of basic data of suppliers stored in SAP with data in the White List of Taxpayers, in the scope of data made available by the National Tax Administration with an indication of differences between KAS and SAP data
- Verification of bank accounts in the items of unsettled suppliers in terms of their presence in the KAS system
- Verification of posted VAT invoices in terms of the supplier's status as an active VAT taxpayer
- Verification of payment proposals in terms of the currency of bank accounts
Besides, it is possible to extend the software standard with functions adapted to the Client's system:
- Retrieve contractor data when creating a new provider
- Counterparty data verification when modifying/displaying supplier data
- Verification of contractor data when entering the purchase invoice
- Verification when booking VAT invoices in terms of supplier status as an active VAT taxpayer
- Blocking for payment or changing the form of payment for documents with negative bank account verification
- Generating the Order to Transfer costs into non-tax deductible costs
- Generating a notification to the Head of the Tax Office about a payment being made to a bank account outside the White List
An important advantage of the offered solution is its full integration with the SAP system, speed of implementation of basic functions, ease of integration with other processes implemented by the Client, and intuitiveness and simplicity of use. After implementation, the Client gains not only a limitation labour costs but above all tax security by significantly reducing the risk of errors in accounting records.