VAT becomes chargeable when tax authorities have the right to claim payment. A chargeable event occurs when the conditions for VAT application are met, usually after a taxable transaction. However, it can also happen during or before the transaction, such as when an advance payment is received. Typically, VAT is paid when the return for the applicable period is filed.
To comply with the validations issued by the Polish tax authorities, companies must ensure that the tax fulfillment date and tax reporting date are included in all journal entries that involve tax items.
The tax fulfillment date refers to when the tax becomes chargeable, which occurs when goods or services are supplied. The tax reporting date is the deadline for reporting the tax to the authorities and is never earlier than the tax fulfillment date. Since the tax fulfillment date is linked to the actual delivery date, companies may face difficulty accurately determining this date if it is not recorded in their SAP environment.
This tax rule applies to countries such as the Czech Republic, Hungary, Slovakia, and Spain.
Additionally, there are concerns regarding transactions related to sent or received prepayments, postponed accounting, and recurring services.
