1. Implementing Financials for EMEA
  2. Tax Box Allocation Rules

Tax Box Allocation Rules

The VAT Registers and JPK Extracts for Poland feature uses Tax Box Allocations as the primary data source. You should base your Tax Box Allocation rules on the Tax Reporting Type Tax Box Codes for Poland (ORA_JEPL_VAT_BOXES) and allocate the tax boxes according to the JPK requirements.

There are no pre-defined Tax Box Allocation Rules delivered with the feature.

Tax Reporting Rules is a mechanism that allows you to select tax lines according to the defined criteria and assign a set of boxes to lines that meet the set of selection criteria.

Tax Box Allocation Rules consist of Condition Sets that are used to select tax lines belonging to a group defined by a Condition Set rule. Each Condition Set is assigned to a set of codes and boxes indicating to which declaration boxes the tax line belongs to. In other words, the indicate where and how the tax amount and/or taxable basis amount should be reported in the JPK_VAT extract file and in the VAT Declaration.

If the tax line belongs to a group with a certain set of boxes, the line will be included in the totals displayed with the field code in the JPK_VAT Extract file and in the printout of VAT Registers:

  • The tax line will be displayed in the Sales Register (together with its transaction header). The taxable basis amount is incorporated into:
    • Transaction level total in the K_19 field in the JPK_VAT Extract
    • Transaction level total for K_19 field and Register Totals for Box Number K_19 in the Sales Register printout
  • The tax amount into K_20 field in JPK (Vat Declaration Box Number 20)
  • The parent VAT Declaration boxes into P_19 (Taxable Basis Amount) and P_20 (Tax Amount)

You can define many Tax Box Allocation rules, but each Tax line is processed only once and when allocated. It will be displayed later in the JPK_VAT extract.

Specific Sales_Register and Purchase_Register boxes determine the JPK section where the transaction appears in the JPK_VAT extract:

  • Sales_Register values assigned to a tax line places the tax line in the <SprzedazWiersz> section.
  • Purchase_Register values assigned to a tax line places the tax line in the <ZakupWiersz> section.

These boxes also contain the total tax amount of the appropriate section.

You must define the allocation rules also for the parent VAT Declaration Boxes. For example, on TBA rule for SALES REGISTER, you must define K_19 and K_20 and assign P_19 and P_20 boxes (VAT Declaration boxes).

There are no specific requirements to the structure of the rules, conditions, or the number of tax boxes in the rule results, except from those earlier mentioned.

Starting from October 1, 2020, the new JPK_VAT xml file schema with VAT Declaration, Purchase, and Sales Registers are valid. Corrections to former VAT Declarations (submitted before October 2020 must follow the legislative processes and formats effective in the corrected Tax Period. Therefore, the new declaration (JPK_V7M) will be applicable only from transactions reported from October 2020.

Therefore, it is mandatory to end date existing (old) Tax Box Rules with date September 30, 2020 and define new Tax Box Rules with start date October 1, 2020. The Tax Allocation process submitted for tax period before October 1, 2020 allocates tax transactions based on the Tax Allocation Rules valid until the end of September 2020. For the tax periods after October 1, 2020, the Tax Allocation process allocates tax transactions based on new TBA Rules effective from October 1, 2020.

Here’s an example of how to end-date TBA Rule valid until September 30, 2020:

Here’s an example of how to define results for new TBA Rules valid from October 1, 2020.

New TBA Rules Results should be defined with:

  • Sales or Purchase Register boxes (K_x boxes for Taxable amount and Tax amount)
  • VAT Declaration boxes (P_x boxes for Taxable amount and Tax amount). When K_x box assignment exists, there should be defined a corresponding P_x box.
  • SALES_REGISTER or PURCHASE_REGISTER

The summary Declaration boxes (P_37, P_38 and P_48) are calculated automatically by program. You don’t need to define P_37, P_38, and P_48 in the TBA Rules Results.

Note: All the TBA Rules (valid until end of September 2020 and new staring with October 1, 2020) that you use for Allocation process must be checked as Enabled.

The cross-period tax box P_62 from JPK_V7M must be also defined, but the period end balance allocation should be reflected by manual taxable transactions or journals.