Annual report on mandatory payment terms

A perfectly prosperous enterprise is not only something to be proud of, but also a source of many administrative and legal obligations. Many entrepreneurs forget one such obligation and are surprised to receive a postal letter from the Ministry of Development and Technology reminding them to report on the applicable payment terms. Meanwhile, this obligation has been in place since 2020 and has already managed to be seriously modified in 2023. It was introduced to combat payment blockages, as it was widely emphasised that private-law tools were not sufficient in this fight and administrative-legal regulations were necessary. Below, we provide a brief overview of the topic in the form of questions and answers, which will enable you to smoothly pass the verification of being subject to this obligation and find out what steps you need to take.

Who is obliged to submit a report?

The obligation is imposed on entities that meet the following criteria together:

– entities whose individual data have been made public by 30 September by the minister responsible for public finances in the Public Information Bulletin on the subject page of the office serving that minister (annually),

– taxpayers that are not tax capital groups,

– taxpayers in which the value of revenue obtained in the previous tax year (in relation to the date of publishing individual data of taxpayers in the Bulletin) exceeded the equivalent of EUR 50 million converted into PLN according to the average euro exchange rate announced by the National Bank of Poland on the last working day of the calendar year preceding the year of publishing individual data of taxpayers.

By what date should the report be submitted?

By 30 April of the year immediately following the year in which the individual data of the taxpayer was made public.

How should the report be submitted?

The reports should be submitted to the minister responsible for economic affairs using electronic forms made available in the Public Information Bulletin on the website of the office serving that minister or via the electronic platform of public administration services.

What data should be indicated in the report?

The following data should be indicated:

1. the company (name) and tax identification number;
2. the value of cash benefits received in the previous calendar year within the time limit specified in the contract;
3. the value of cash benefits provided in the previous calendar year within the deadline specified in the contract;
4. the value of cash benefits not received in the previous calendar year within the deadline specified in the contract, for which the deadline was exceeded by:
5. not more than 5 days,
6. 6 to 30 days,
7. 31 to 60 days,
8. 61 to 120 days,
9. more than 120 days;
10. the value of cash benefits not fulfilled in the previous calendar year within the time limit specified in the contract for which this time limit was exceeded by the periods indicated as above
11. the percentage share of the individual cash benefits referred to in point 4 in the total value of the cash benefits due to that entity in the previous calendar year;
12. the percentage share of the individual cash benefits referred to in point 5 in the total value of the cash benefits owed to the entity in the previous calendar year.

These data should be indicated in Polish currency.

What is the penalty for failure to comply with the reporting obligation?

Anyone who, being responsible for the submission of this report, allows the report not to be submitted on time is liable to a fine. A person who obstructs or frustrates the fulfilment of this obligation may also be penalised.

Who is authorised to sign and submit the report?

The obligation rests with the manager of the entity, who is deemed to be a member of the board of directors or another managing body of the entity, a person performing the function of such a body, and if the entity does not have such a body – the person managing its business (limited joint-stock partnership and limited partnership – the general partner managing the affairs of the company, general partnership – the partner managing the affairs of the company). A liquidator is also deemed to be the manager of the entity, as well as a receiver or administrator appointed in restructuring proceedings.

A proxy and a person who holds a general, special or generic power of attorney are also authorised to act.

Therefore, if you have any doubts regarding the reporting obligation, please do not hesitate to contact us – we will analyse the existence of this obligation, advise on the preparation of data for the report and even submit it on your behalf.