Please be informed that in Poland from 1 July 2020 with respect to the intra-Community supply of goods (hereinafter: “ICS”) and the right to 0% VAT rate the new VAT regulations so-called „Quick fixes” came into force.
These changes follow from an amendment to EU Directive and EU Regulation governing VAT on intra-community transactions.
In general, taxpayers are obliged to submit to the tax authorities an appropriate set of documents in order to fulfill their obligations related to settlements of the ICS transactions.
In connection with the above, you can find below the information about material and formal conditions that need to be met for the purpose of the 0% VAT rate in the ICS transaction in Poland.
Material and formal conditions for the purpose of the 0% VAT rate in the ICS transaction
• the way of providing the supplier with an EU VAT ID number is left to the discretion of taxpayers participating in a given transaction. It is not subject to any specific formal requirements (for example, the obligation to use a specific document) set out in national legislation;
• this can be done by any means to prove that the message was received by the supplier. In this regard, the exchange of electronic mail is sufficient. The fact that the supplier provided his customer’s EU VAT ID number on the invoice should be considered as a means of meeting the abovementioned duty;
• in principle and in normal circumstances of business transactions – this message should be forwarded before the event giving rise to the tax obligation.
• this condition may be waived in certain circumstances, if the supplier duly explains his fault to the head of the tax office, in writing, e.g. when failure to submit the EC sales list or to submit it after the deadline or incorrect information was the result of a mistake, and for example, not participating in a tax crime;
• the taxpayer (supplier) is obliged to properly explain his fault.
• the institution of presumption applies in the following cases:
- in the case of transporting goods by a third party acting on behalf of the supplier, the supplier needs to have at least two non-contradictory documents from Group A (for examples CMR and invoice from the carrier of the goods), which are issued by two independent entities, as well as independent of the supplier and the purchaser, or have any single evidence referred to Group A (for example CMR), along with any single non-contradictory evidence referred to Group B (for example an insurance policy) confirming shipment or transport that has been issued by two different parties that are independent of each other and independent of the supplier and the purchaser;
- if the supplier has a written declaration from the purchaser confirming that the goods have been transported to another EU Member State (the indication of that country is also mandatory) by that purchaser or a third party acting on his behalf; the necessary elements of such a declaration are included in art. 45a paragraph 1 lit. b point (i) of EU Regulation 2018/1912 (model statement attached) and preferably two non-contradictory documents from Group A, which were issued by two independent entities, as well as independent of the supplier and the purchaser, or have any single the evidence referred to Group A together with any individual non-contradictory evidence referred to Group B;
- in case of transporting goods by a third party, the supplier must have at least two the supplier need to have at least two non-contradictory documents from Group A (for examples CMR and invoice from the carrier of the goods), which were issued by two independent entities, as well as independent of the supplier and from the purchaser, or have any single evidence referred to Group A (for example CMR), along with any single non-contradictory evidence referred to Group B (for example an insurance policy) confirming the shipment or transport that has been issued by two different parties which are independent of each other and also independent of the supplier and the purchaser.
The tax authorities may rebut the presumption by providing evidence that the goods were not actually shipped or transported from Poland to the territory of another EU Member State.
Failure to comply with the presumption (lack of the documents from Group A or Group A and B) does not mean that 0% of the VAT rate in ICS transactions shall not be applied.
In such a situation, the supplier is obliged to prove otherwise, pursuant to the provisions of the VAT Act, that the conditions for applying the 0% of VAT rate in ICS transaction are met.
In other words, if the presumption is not applicable (no documents from Group A or Group A and B), the situation remains the same as it was until 30 June 2020. The taxpayer needs to prove the delivery of goods by the documents from the VAT Act regulations in the same way as it took place until 30 June 2020.
If you would like to know more or receive the full version of the mapping process of the ICS transaction, please do not hesitate to contact us.
CEE VAT Compliance Director
VAT Compliance Manager