Submission of VAT-R registration applications in the field of VAT by accounting offices is the norm. However, it should be remembered to perform these activities with great caution, as they may be associated with many costly consequences, such as liability for the taxpayer’s VAT arrears. However, what is important, this responsibility is not automatic and every time. When is it possible then?
This topic should begin with Article 117c of the Polish Tax Ordinance, where it is indicated that the attorney referred to in Article 96 sec. 4b of the Polish VAT Act is jointly and severally liable with the taxpayer with all his assets for the taxpayer’s tax arrears arising from activities performed within 6 months from the date of registration of the taxpayer as an active VAT taxpayer, on the terms set out in the VAT regulations.
On the other hand, in accordance with Article 96 sec. 4b of the Polish VAT Act, in the case of registration of a taxpayer whose registration application was submitted by a proxy, the proxy is jointly and severally liable together with the registered taxpayer up to the amount of PLN 500,000 for the taxpayer’s tax arrears arising from activities performed within 6 months from the date of registration of the taxpayer as an active VAT taxpayer.
As it follows from the above, joint and several liability applies only to the submission of a registration application, not an update. What is more, the attorney’s liability is limited to tax arrears incurred during the first 6 months of the taxpayer’s activity (time limitation) and to the amount of PLN 500,000.00 (amount limitation).
Thus, such joint and several liability should not be associated with the submission of the VAT-R registration application by the attorney itself, and in addition, it has a time and amount limitation!
Importantly, as follows from Article 96(4c) of the VAT Act, the above-mentioned regulation does not apply if the occurrence of tax arrears was not related to the taxpayer’s participation in unreliable tax settlement in order to obtain a pecuniary benefit.
In other words, the determinant of the potential liability of the attorney will not be the mere filing of the VAT-R return, but his active participation in the unreliable tax settlement by the taxpayer in question.
To sum up, when filing VAT-R registration applications on behalf of taxpayers, it should be remembered that then, as a rule, we become entities jointly and severally liable for the taxpayer’s arrears.
However, such joint and several liability is limited in time and amount. What is more, in order for it to materialize, it is also necessary to actively participate in the unreliable tax settlement by a given taxpayer. And the mere notification of a VAT-R update does not determine such liability.
