Detection of unreliable VAT payers

To avoid the risk of paying tax on behalf of your business partner, use our integrated solution in the SAP system, which enables the control of the supplier and the buyer and his bank accounts, examine each item and payment orders before sending it to the bank. 

The amendment to the Value Added Tax Act introduced the institute of unreliable payer and liability for the tax paid. Status unreliable payer obtains from 1 January 2013 the VAT payer, who seriously fails to meet his obligations in relation to tax administration. This information is published on the Registry of VAT Payers website.

In addition, the financial management newly introducing from 1 October 2014 stricter conditions for the application of this Act. There have been changes in the classification of companies that may be included on the list of unreliable VAT payers. The biggest change is the reduction of the limit of VAT arrears and added situation that will be evaluated as a reason for the decision about the unreliability of the payer (non-compliance with mandatory time limits for filing, failure to document required information, etc.).

Purchaser is liable for the payment of tax of his/her supplier, should the supplier:

  • is marked as unreliable payer

  • his bank account (upon which was payed the invoice) is not published in the VAT register or his account is held abroad

 For tax paid can vouch the supplier for its customers in the case of issued credit notes.

The practical consequence of liability for paid tax is, that the entrepreneur has to pay the VAT instead of his/her business partner.

Solution description: 

Our solutions use web service information retrieval (CRPDPH) operated by the Ministry of Finance.

The goal is to find answers to the following questions:

  • Is supplier reliable tax payer?
  • Is supplier's bank account registered with the Tax Office?
  • Is the registered account domestic?

Part of the proposed solution is a separate report directly in SAP, which performs a collective confidence check billing and control the registration of bank accounts at the following levels:

Master data of suppliers and customers

  • For each vendor / buyer is proven reliability VAT and checked all bank accounts specified in the master record. Used to single and / or periodic inspection of the entire database of suppliers and customers.

Individual items of suppliers and customers - ie. The supplier's invoice and customer credit notes

  • For one or more documents is detected reliability VAT and checked one particular bank account, which is linked to the entry document. Used to running monitoring of outstanding commitments and to confirmation of documents already paid. There is a possibility of limiting checks only for documents whose total value exceeds a set limit (eg. Value of more than 26000 EUR)

Payment proposals

  • For one or more payment proposals is made a batch scanning of individual items, which are planned to pass to the bank for payment. It serves to identify the payments that could be directed to the accounts of unreliable payers of VAT, to non-registered accounts or to accounts held abroad.

In addition can be used:

History view:

  • within the bounds of report for collective control is possibly to display a history for an individual suppliers in the event that in the past were temporarily labeled as unreliable payers

Bulk payments blocking

  • the possibility of bulk payments blocking of individual items and / or master records

Benefits

  • significant time savings, all data available in the SAP system
  • transparent report, possibility to display only "problem" items
  • history of the unreliability of suppliers
  • possibility to block unreliable payers and their related documents for payment right during the check