The Entrepreneurs Warning Program is a new solution introduced by the National Tax Administration (KAS). Its task is to protect entrepreneurs against unconscious participation in the carousel tax fraud. As part of the Program, information and results of KAS analyses, will be made available, to help business entities better identify risky transactions and to avoid unconscious participation in fraud using the VAT structure. The Program is a form of communication between the administration and entrepreneurs. Similar solutions are recommended by the European Commission and are used in other EU countries.
The operation of the Program has been explained by Deputy Head of the National Fiscal Administration – Paweł Cybulski:
“KAS will direct a written warning about the occurrence of risk in the supply chain along with the recommendation to use the Split Payment Mechanism when paying to a specific contractor. Such a warning will be sent to individual entities after a thorough analysis of the data available to KAS. This action will not be an interference with commercial contacts or the selection of contractors. Our goal is to inform the entrepreneur about the existing threat of unconscious participation (as a buffer) in carousel fraud. We want to create an early warning system for honest entrepreneurs. After receiving the signal from us, they will be able to take appropriate actions to verify the reliability of their contractors and protect themselves against the consequences of participating in illegal activities”
Source: Ministry of Finance