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White list of VAT taxpayers
White list of VAT taxpayers - Register of VAT taxpayers used by entrepreneurs running sole proprietorships to verify contractors
The white list of VAT taxpayers, introduced in Poland in September 2019, has become one of the key tools used by entrepreneurs to verify their contractors.
This is a register that contains detailed information about VAT taxpayers, including bank account numbers to which payments should be made. For people running a sole proprietorship (JDG), this list is of particular importance, because using it can protect against unpleasant tax consequences. In this article, we will explain what the White List of VAT taxpayers is, how to use it, and what risks are associated with not using it.
What is the VAT White List?
The White List of VAT taxpayers is a nationwide register kept by the National Revenue Administration (KAS), which contains data on VAT taxpayers. The list includes both active and deleted VAT taxpayers, as well as those who have had their VAT taxpayer status restored. This register is available online and allows entrepreneurs to easily verify their contractors.
The white list contains the following information about VAT payers:
Tax Identification Number
Name or first and last name of the taxpayer
Registered office address or residential address
Taxpayer status (whether an active, registered VAT payer)
Date of registration or deletion from the VAT register
Bank account numbers to which payments should be made
Access to the White List is free and available through the website of the Ministry of Finance. Entrepreneurs can search for contractors using their NIP, REGON, KRS or bank account number.
Why is the White List so important for entrepreneurs running sole proprietorships?
One of the main goals of introducing the White List was to increase the security of economic transactions and reduce tax fraud, such as VAT carousels. For entrepreneurs running a sole proprietorship (JDG), using this tool is of great importance, because it involves responsibility for making payments to accounts indicated on the White List.
Since January 2020, a regulation has been in force in Poland, according to which entrepreneurs making transactions above PLN 15,000 gross are obliged to make payments only to bank accounts indicated on the White List. In the event of making a payment to another account, the taxpayer is exposed to:
- Joint and several liability for the contractor's tax obligations – if the contractor fails to pay his VAT, the entrepreneur who transferred the money to an account that does not appear on the list may be held liable for this tax.
- It is not possible to include the expense in the costs of obtaining income – payments made to accounts not included in the White List cannot be included in the costs of obtaining income, which leads to higher tax burdens.
How to use the Whitelist?
Using the White List is simple and intuitive. Before making a transfer to a contractor, the entrepreneur should check whether the bank account number appears in the register. Below are the steps on how to do it:
- Go to the website of the Ministry of Finance - The register can be found on the website https://www.podatki.gov.pl. In the "Check VAT entity status" tab there is a search tool.
- Enter your contractor's details – The search can be performed using the NIP, REGON, KRS number or bank account number.
- Verify bank account number – Check if the bank account number you want to transfer money to is on the list.
- Keep proof of verification – For tax purposes, it is worth keeping proof of verification (e.g. a screenshot) in case of a tax audit.
What are the consequences of not using the Whitelist?
Failure to comply with the obligation to use the White List for transactions exceeding PLN 15,000 gross may result in serious consequences. Here are the most important ones:
Joint and several responsibility
An entrepreneur may be held liable for the tax liabilities of a contractor if the latter fails to pay the VAT due.
No costs of earning income
Payments made to undeclared bank accounts will not be deductible as an income tax expense.
Administrative penalties
Entrepreneurs may be exposed to additional administrative penalties if tax authorities discover violations of the White List provisions.
The White List of VAT taxpayers is a tool that significantly increases security in economic transactions, but also imposes obligations on entrepreneurs, including sole proprietors (SMEs). Regular use of the White List before making payments to contractors is a key step that can protect entrepreneurs from unpleasant tax and financial consequences.
Using this register is simple and accessible to every entrepreneur, and proper verification of contractors' data should become a permanent practice in everyday functioning. companies.
Sources:
Ministry of Finance (2023). "White list of VAT taxpayers." Available at: https://www.podatki.gov.pl
"Changes in VAT regulations: White list of VAT taxpayers", Gazeta Prawna, 2020.
National Revenue Administration (2023). "Instructions for using the VAT taxpayers register."
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