What is JPK and why is it important for Polish entrepreneurs?

In today's dynamic business environment, one of the key tools that has revolutionized the way,
How businesses report their financial and accounting data is Uniform Control File (JPK).. Its introduction was a response to the need for more effective tax control, as well as the fight against tax fraud, especially in the VAT field.

What is the Single Control File?

The Uniform Control File (JPK) is a standard for electronic reporting of financial data to tax authorities in Poland. JPK is a collection of data generated from companies' accounting systems, which contains detailed information about business operations.
These files are prepared according to a specific XML format, which allows them to be automatically processed by the National Tax Administration (KAS).

The introduction of JPK was one of the elements of the program to seal the tax system in Poland. Thanks to it, tax offices gained a tool for more effective control of
and verification of tax data, which has significantly reduced the risk of VAT extortion.

Obligation to send JPK

Since July 1, 2016, large companies have been required to regularly send JPK files. As of January 1, 2018, this obligation also extended to small and medium-sized companies.
Currently, any business that does full accounting is required to generate and send JPK files at the request of tax authorities or as part of standard reporting.

Types of JPK

The Single Control File includes several different types of files, each dealing with a different aspect of the business. The most important of these are:

• JPK_VAT - contains the VAT register, i.e. information on sales and purchases subject to VAT. This is the most commonly uploaded file that must be provided monthly.
• JPK_FA - includes sales invoices, making it possible to track business transactions in detail.
• JPK_KR - pertains to the books of account, containing detailed accounting entries.
• JPK_MAG - warehouse documents, which are crucial for companies managing large inventory.
• JPK_WB - Bank statements, which provide information on cash flow.
• JPK_PKPIR - Tax Income and Expense Ledger, used by entrepreneurs accounting under simplified accounting.
• JPK_EWP - Revenue Records, designed for companies taxed on a flat rate of registered income.

Advantages of JPK for entrepreneurs and tax offices

The introduction of JPK has brought numerous benefits for both businesses and the tax administration. For companies, the automation and standardization of reporting means fewer errors and the ability to respond more quickly to any irregularities. Submitting data in JPK format also simplifies communication with tax offices and avoids costly penalties for reporting errors.

From the tax administration's point of view, JPK enables more efficient tax audits, allowing the offices to identify potential abuses more quickly and accurately. With JPK, tax authorities can also better analyze data on a large scale, which contributes to greater transparency of the entire tax system.

Summary

The Uniform Control File (JPK) has become an indispensable part of the Polish tax system. Thanks to its introduction, reporting of financial and accounting data has become more transparent, automated and less error-prone. However, entrepreneurs must remember to regularly generate and send the appropriate JPK files,
to avoid sanctions and ensure compliance. In turn, tax authorities have gained a powerful tool to more effectively counter tax fraud.

The future of JPK in Poland promises to see further development and improvement of this tool,
Which will be crucial for the fairness and efficiency of the tax system
in the country.