Who needs a fiscal representative and intermediary for the purpose of VAT e-commerce procedures in Poland?

Since July 1, 2021, new EU VAT regulations the so-called e-commerce package related to the supplies for EU consumers will enter into force in the territory of the European Union (EU).

For the non-EU established entrepreneurs – depending on the e-commerce procedure used – there will be in Poland still an obligation to appoint a fiscal representative or in some cases an “intermediary” as a new tax institution created in the EU Member States for the purpose of VAT e-commerce package.

I. Who can use EU OSS and Non-EU OSS procedures and how?

A. EU OSS procedure – who and how?

• a taxpayer established (headquarter or fixed establishment) in one of the EU Member State for:
  • intra-Community distance sales of goods B2C within the EU,
  • supplies of B2C services taking place in EU Member State in which he is not established,
• a taxpayer not established (lack of headquarter or fixed establishment) in one of the EU Member State for:
  • intra-Community distance sales of goods B2C within the EU,
• an electronic interface facilitating supplies of goods (deemed supplier) for:
  • intra-Community distance sales of goods B2C within the EU,
  • certain domestic supplies of goods.

Notice!

If you are a non-EU established company, you need to appoint a fiscal representative for the purpose of VAT registration in Poland. In this matter, there are no changes in Poland.

The fiscal representative is not obligatory for the companies from NORWAY and Great Britain since 1 January 2021.

Only after registration for VAT purposes in Poland, a taxpayer may apply for the EU OSS procedure in Poland.  

B. Non-EU OSS procedure – who and how?

• foreign taxpayers- without headquarter or fixed establishment in the EU Member State.

Notice!

If you are a non-EU established company and you want to register in Poland only to non-EU OSS procedure you do not need to appoint a fiscal representative.

II. Who can use the IOSS procedure and how?

• EU established suppliers selling goods to EU final consumers.

• EU established electronic interface operators facilitating the distance selling of low-value imported goods to relevant suppliers (known as suppliers).

• Non-EU established suppliers selling goods to EU final consumers. These suppliers can use the procedure as follows:

• directly (without the obligation to identify an intermediary),
• indirectly, through an intermediary based in the EU.

• Non-Eu established electronic interface operators, facilitating the distance selling of low-value imported goods to relevant suppliers (so-called deemed suppliers). These electronic interface operators can use the procedure as follows:

• directly (without the obligation to identify an intermediary),
• indirectly, through an intermediary based in the EU.

Notice!

The non-EU establish suppliers and electronic interfaces for the purpose of IOSS procedure will be obligated to appoint an “intermediary” in the EU.

What is an intermediary?

• the intermediary needs to be a taxable person established in the EU,
• must fulfill all the obligations laid down in the import scheme for the supplier or electronic interface that appointed him, including the submission of IOSS VAT returns and payment of VAT on the distance sales of imported low-value goods,
• the supplier or the deemed supplier who appointed an intermediary remains liable for the VAT obligations, including the payment of VAT together with the intermediary,
• EU Member States will attempt to recover the VAT from the intermediary and if this attempt fails Member States can try to recover VAT from the supplier,
• the intermediary is not necessarily the person that lodges the customs declarations for release in free circulation.

Notice!

Taxpayers (suppliers and electronic interfaces) not established in the EU must appoint an intermediary in order to use the import procedure. The exceptions are when the EU has concluded an agreement on mutual assistance in the field of VAT, e.g. with NORWAY. In this case, Norwegian companies do not need to appoint an intermediary.