VAT settlement

VAT settlement: Comprehensive handling of declarations and records

Wondering how to settle VAT efficiently and safely? Proper VAT accounting is the foundation of financial stability for any company. Record-keeping, timely preparation of VAT returns and correct JPK_V7 reporting have a direct impact on the company's tax security and reduce the risk of errors.

Aider Polska's experts in Warsaw, Katowice and Lodz take over the burden of paperwork, ensuring that your documentation is fully correct and JPK files are sent on time. Our teams help to organize VAT processes and increase control over tax data.

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What are the responsibilities of a VAT taxpayer?

Regardless of the cooperation model, the formal responsibility for VAT settlements remains with the taxpayer. In practice, however, the implementation of these responsibilities is largely supported by Aider Polska.

Areas in which we take over or significantly support processes include:

assisting with VAT and VAT-EU registration,
Ensuring correctness and timeliness of VAT records,
preparation and submission of declarations and JPK_V7 files,
ongoing control of data completeness and quality,
Support in classification of transactions and application of VAT rates,
verification of contractors (white list, VIES),
preparation of documentation for audit purposes,
ongoing support for contact with tax authorities.

Our role is not only to technically carry out the duties, but above all to organize them , secure the process and relieve the burden on the client's team.

When is it a good idea to outsource VAT accounting?

The support of VAT experts is particularly important when the company:

conducts international business,
carries out a large number of transactions,
uses multiple accounting systems,
needs to organize VAT processes,
is preparing for a tax audit,
wants to reduce tax risks and reporting errors.

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Keeping VAT records

Keeping VAT records is the basis for proper VAT accounting. This process includes not only recording invoices, but also ongoing data control and preparation of information for JPK_V7 reporting.

Determining the principles of VAT recording

At the beginning of our cooperation, we analyze the client's bookkeeping and accounting and tax processes. Then we define the way of recording sales and purchases, establish rules for classifying transactions, verify the correctness of data mapping and adjust the accounting system to the requirements of JPK reporting.

Ongoing maintenance of VAT records

As part of the day-to-day service , we recognize sales and purchase transactions, control the correctness of VAT rates, monitor the moment when tax liability arises, verify the completeness of documentation, and ensure that the data comply with accounting policies and regulations.

With properly maintained VAT records, the company gains greater control over settlements and reduces the risk of errors in declarations.

Preparation of VAT returns and JPK_V7

The preparation of VAT declarations and JPK_V7 files requires a thorough analysis of data and a multi-step verification of the correctness of settlements.

In practice, the preparation of VAT JPK declarations is not only the technical generation of the file, but above all the process of managing the quality of tax data, supported by automation. As a result, the reporting is reliable, consistent and in line with current requirements, and the risk on the client's side is significantly reduced.

- We start the process by analyzing:
  
  VAT registers of sales and purchases,
  
  source documents,
  
  adjustments and internal documents,
  
  foreign transactions,
  
  completeness and consistency of data.
- At the substantive inspection stage:
  
  we verify the correctness of VAT rates,
  
  we verify the JPK designations,
  
  we analyze the moment when tax obligation arises,
  
  we control domestic and international transactions,
  
  we identify technical errors and duplicates.
- We use technology tools that:
  
  adapt data to the JPK structure,
  
  verify contractors (white list, VIES),
  
  control currency exchange rates,
  
  identify duplicate invoices,
  
  detect deficiencies and errors in documents,
  
  check the correctness of accounting periods.
- Once the verification is completed:
  
  we generate the JPK_V7 file,
  
  we adjust the data to the current XML structures,
  
  we send declarations to tax authorities,
  
  we monitor the shipping status and receipt of UPO,
  
  we support clients in communication with the tax administration.

Technologies to support VAT accounting

In our work, we use both in-house systems (such as RAKS SQL or Optima) and client solutions, including popular ERP systems such as SAP.

The tools we use support:

automatic verification of tax data,
counterparty control,
identification of errors and duplicates,
Compliance of data with current JPK structures,
monitoring the correctness of VAT reporting.

Automation of processes allows to increase data accuracy and reduce manual work.

Support during VAT follow-ups and audits

Support during VAT inspections and audits is a specialized service that includes preparation of the organization for contact with tax authorities, representation during the proceedings and follow-up after the audit. The purpose of cooperation is to reduce tax risks, secure the correctness of VAT settlements and improve communication with the tax administration.

- The key element is the proper preparation of the organization even before the tax authority formally initiates the action. At this stage, we conduct an analysis of processes and documentation related to VAT settlement.
  
  The scope of activities includes, among others:
  
  review of VAT settlements, JPK_V7 declarations and tax records,
  
  verification of the correctness of the classification of transactions (VAT rates, place of supply, WDT, WNT, export, import),
  
  analysis of source documentation, including invoices, contracts and transport documents,
  
  identification of areas of higher tax risk,
  
  evaluation of the correctness of input VAT deduction,
  
  analysis of related party transactions and supply chains,
  
  checking the consistency of data reported to tax authorities.
  
  The purpose of the preparatory stage is to reduce the risk of adjustments, sanctions and ensure the tax security of the company.
- During a VAT audit, we provide ongoing operational and substantive support and represent the client before the tax authorities.
  
  In practice, this includes:
  
  contacting the tax office or customs and revenue office,
  
  preparing responses to summonses and inquiries of the authorities,
  
  completion and presentation of documentation,
  
  explaining the specifics of the company's activities,
  
  support during evidentiary actions and hearings,
  
  control of the scope of the demands of the tax authority,
  
  supervision of the correctness and timeliness of the information provided.
  
  Experience in communication with the tax administration allows us to effectively conduct the audit process and reduce the risk of tax disputes. As part of the cooperation, clients can authorize Aider Polska experts to directly contact and represent them before the tax authorities.
- When irregularities are detected, it is crucial to quickly develop an appropriate action strategy and assess tax risks.
  
  Support includes:
  
  analysis of the reasonableness of the authority's position,
  
  preparation of legal and tax arguments,
  
  support for corrections of VAT returns,
  
  mitigation of the risk of VAT sanctions and fiscal penalties,
  
  development of corrective recommendations,
  
  negotiating the scope of audit findings.
  
  Our goal is to secure the interests of the client and develop the safest possible tax solution.
- The support does not end with the completion of the verification activities or tax audit. We also help implement corrective actions and put VAT processes in order.
  
  After the audit is completed, we support clients with:
  
  analysis of the audit protocol or the result of verification activities,
  
  preparation of objections and appeals,
  
  implementation of post-inspection recommendations,
  
  updating tax procedures,
  
  improvement of VAT reporting processes,
  
  reduce the risk of similar irregularities in the future.
  
  Professional support in VAT audits is not only a reaction to the actions of the tax authorities, but first and foremost a long-term management of tax compliance and security of the company's accounts.

Benefits of cooperation with Aider Poland

Cooperation with Aider Polska's experts in VAT settlement allows companies:

reduce tax and financial risks,
increase the security of settlements,
put VAT processes in order,
relieve accounting and finance teams,
improve the quality of reporting data,
obtain expert support in ongoing tax problems.

Our experience includes servicing both Polish and international companies operating in various industries.

Check also: VAT Compliance

FAQ - VAT settlement

- VAT accounting includes keeping VAT records, preparing VAT returns and JPK_V7 files, checking the correctness of data, and reporting in accordance with applicable regulations.
- In order to properly account for VAT, it is necessary to keep correct records of sales and purchases, control documentation, and prepare VAT returns and JPK_V7 on time.
- Formal responsibility for VAT settlements remains with the taxpayer. In practice, the process can be supported by external experts responsible for preparing records and reporting.
- Yes. More and more companies are outsourcing their VAT settlements to reduce the risk of errors and increase tax security.
- VAT Accounting focuses on the day-to-day handling of records, returns and tax reporting. VAT Compliance covers the broader area of managing tax compliance, audit processes and overseeing the accuracy of settlements.