Contractor screening / K-Scanner

Establishing a well-organized and a well-executed system of background checks for contractors is one of the cornerstones of successful VAT settlements. In fact, subsequent amendments to tax regulations gradually extent the scope of taxpayers’ duties in terms of contractor screening, imposing severe penalties for non-compliance.

For instance, the provisions of the VAT Act deny taxpayers the right to deduct input VAT from invoices issued by entities not registered for VAT purposes;
As of 1 January 2020, an entity making a payment exceeding PLN 15,000 to a bank account from outside the White List, may face negative consequences in terms of income taxes and become jointly and severally liable for VAT arrears of contractors;
As of 1 July 2020, the requirement to provide a valid EU-VAT identification number for the purposes of applying the 0% VAT rate for intra-Community supplies of goods was imposed on purchasers;
Proper contractor screening constitutes one of the required due diligence procedures, and is taken into account, inter alia, in case of unknowingly participating in VAT fraud.

Joint efforts of our VAT and IT professionals fructified in creation of an IT tool providing for quick and mass verification of contractors, dubbed: K-Scanner.

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Functionalities offered by K-Scanner include

checking whether bank account and NIP numbers of contractors are White-Listed,
automated and mass VAT-EU and VIES numbers’ validation,
assessment of the REGON entries against the possible suspension of economic activity or declaring bankruptcy by contractors,
determination of the time of operation and the scope of the entities’ business activities (PKD - Polish Classification of Activities)
supporting due diligence processes; providing for customization of additional contractor screening tests to the company’s needs.

Another indisputable benefit of the tool is that it allows for data archiving. K-Scanner: