The obligation to re-report cross-border tax arrangements. The first re-reporting falls at the end of May 2020.
The new regulation, which is to enter into force on 1 April 2020, introduces an obligation to re-report cross-border tax arrangements that have already been reported. This absurd situation is a consequence of the rash implementation of MDR regulations into the Polish tax law as of 2019, whereby all other EU countries introduced local MDR provisions not earlier than on 1 January 2020. Now the tax administration admits that it is not able to process the received data for the purposes of EU MDR reporting in line with the form defined by the EU Council Directive.
Who will have to report (again)?
The obligation covers tax arrangements notified to the Head of The National Revenue Administration (NRA) till 31 March 2020. As a result, the following entities will have to report again:
– promoters (e.g. tax advisors) – by 31 May 2020;
– users (taxpayers) – by 30 July 2020 (both MDR-1 and MDR-3); and
– supporters (e.g. accountants) – by 31 August 2020.
The draft introduces a simplified procedure of providing information to the NRA. When more than one entity was obliged to provide this information, the obligation to report again will be imposed on the entity which previously provided this information to the NRA.
Valid MDR numbers become… invalid
What is especially important previously issued MDR numbers will become automatically invalid. Reporting entities will not receive any official decision in this regard. Please be careful since using an invalid MDR number may result in penal fiscal liability.
If you would like to discuss the upcoming changes or if you are interested in our support in defining new MDR responsibilities, please contact our specialists:
Head of Tax