There are plenty of things you should take care of when running a company, and one of the most prominent ones is taxation. Every country has its own policy, making the rates different for both individuals and corporations. It often turns out that your current country of residence doesn’t provide the best available rates so, to get the most out of your business, you decide to register it somewhere else.
Whether you want to do it from the beginning because you realise how much you can save or decide to start a company in your native country and then, as it grows, move it out, it creates new possibilities for you but at the same time makes the matter more complicated.
What is SAF-T Poland?
The Standard Audit File for Tax, or SAF-T, is a system developed to exchange tax information efficiently between authorities and businesses within the European Union. It was initially created by the Organization of Economic Cooperation and Development in 2005 to maximise the consistency of country-to-country filing to make sure no data gets lost in the process of exchanging information between tax authorities.
It is filed in the form of an XML file, though there are no exact specifications for the format, leaving entrepreneurs free to create it any way they prefer. Poland introduced it to large taxpayers on July 1st, 2016, and it became compulsory 2 years later, in January 2018. It completely replaced VAT returns on October 1st, 2020.
It is now mandatory to file your VAT records electronically with the SAF-T file for Polish firms and others that do business in the country, even if you don’t have a physical office in Poland.
Poland SAF-T Solution for SAP – The change
Since October 2020, the Ministry of Finance has changed the procedure for the electronic filing of VAT return documents. It is supposed to make it easier for businesses, reducing the number of files they have to issue to prevent duplication in the number of tax documents flowing in.
Before the change, entrepreneurs were required to file multiple reports, including a monthly JPK file with a record of sales and purchases as well as other files containing VAT information. Now, the number of files to issue has been cut to just one, making entrepreneurs’ lives much easier, with new fields added for the VAT compliance form, among other changes, turning it into a single file.
What it means for entrepreneurs
While fewer documents to file might sound like a good thing, there is one major downside to this solution. Although you now have to issue only one file, it is much more complicated, meaning errors are more likely. Entrepreneurs usually have busy lives and might not even have time to file everything themselves and will end up hiring third parties to help them.
Because this change is so recent, even trained accountants can make mistakes on the long forms, not to mention their services tend to be very costly. With that, it would make much more sense to use a technological solution that is not only cheaper compared to an accountant but also less error-prone.
At S4FN, our goal is to make every entrepreneur’s life easier. We acknowledge the amount of time and money that gets wasted every month for accounting-related matters and know how to help you get those resources back for you to use them where it matters the most.
All the solutions we offer are easy to use, don’t require any update or upgrade to your software, and you can start using them today to file your next report and send it directly to the appropriate authority.
How we can help
There are plenty of solutions available to businesses to make this process smoother. SAP is the most popular software companies use to file taxes, and it is especially useful in this case. With the right integration, you can not only save money but also time that you can then use much more efficiently scaling your business.
S4FN is a company providing integrations for SAP systems. We provide additional functionality to help you comply with government legislation, making sure there won’t be any surprises later with you being asked to refile documents, file additional ones, or worse.
Getting it right the first time
Because the SAF-T in Poland is complex, there are a lot of places where you can make a mistake. It can then cause further issues down the road, with tax authorities fining you around 500 PLN for each error. That is, no matter how many of them there are, the fine will simply be multiplied and can get really high.
If you make the required corrections within the deadline, the fine might be waived. That isn’t always what happens though, especially when errors persist, in which case they might take extra care to check your future filings, possibly finding even more discrepancies.
How our services work
We provide our customers with top-notch solutions to suit not only their needs but also the expectations of the authorities. You can now get a quote or request a demo of our solutions using the contact form available here.
It allows you to see how you like our solution and how much your business requires it. Then, if you decide to get a full version, we will gladly assist you with the integration process to make it even more seamless, and we will be there for you all the time should you need anything along the way.
Making your life easier
Corporate taxation is a tricky subject. Countless changes are happening as we speak, and having a team of accountants ready to make proper adjustments to address the changes might not always be the best solution. Because it is costly and humans, no matter how professional, are error-prone, it is better to leave it to a machine that will take care of everything for you.
Our SAP integration solutions get your company’s taxes to the next level, ensuring it all complies with the appropriate authority’s requirements for you to avoid unnecessary fees and time spent correcting the forms.