Another amendment to VAT provisions (bill of 24 June 2019) introduces a number of material changes regulating VAT effects on international trade in goods. Key changes are presented hereinbelow:
1. Call-off stock
- moving of goods from another EU country to a call-off stock as intra-Community acquisition of goods (WNT) will not be subject to VAT in Poland; subject to VAT will only be the release of goods from the call-off stock to the purchaser (who will settle this acquisition as intra-Community acquisition of goods),
- the supplier using the call-off stock procedure will avoid the need to recognize the intra-Community acquisition of goods in Poland and settle VAT on domestic sale.
Changed terms of using call-off stock as compared to a consignment warehouse
- The permissible period of keeping goods in the warehouse will be reduced from 24 to 12 months – once this time-limit is exceeded, a tax obligation in respect of intra-Community acquisition of goods will arise on the part of the foreign supplier (the need to register the supplier for VAT purposes in Poland).
- It will be possible to apply the call-off stock procedure to goods designated for trade (and not only for production or service purposes).
The call-off stock cannot be used to store goods for unspecified purchasers (an agreement with a specified purchaser is required). It is possible, however, to replace a specified purchaser with another specified purchaser that satisfies formal conditions. It will also be necessary to disclose the movements of goods to the call-of stock in the records and recapitulative statements (IC listings).
2. Chain transactions
The amendment to the VAT Act introduces changes with regard to the place of supply with VAT of intra-Community chain supplies in which the first taxable person releases goods directly to the last taxable person in the supply chain.
- Introduction of presumption that a cross-border transaction shall be the delivery from the first supplier to an intermediary (the entity organizing transport which is neither the original supplier nor ultimate purchaser).
- As a departure from this rule – a cross-border transaction shall be the delivery made by an intermediary in a situation where such intermediary transferred its EU VAT number, attributed to it by a member state from which the goods are sent, to its supplier.
The new provisions reduce the importance of applicable delivery terms (Incoterms).
The new provisions do not concern the rules of taxation of import/export transactions (to which the existing provisions continue to apply).
3. Zero rate for intra-Community delivery of goods (WDT)
The VAT Bill also changes the legal nature of the condition of applying the zero VAT rate to intra-Community delivery of goods, consisting in that the purchaser gives the supplier of goods an appropriate and valid identification number for intra-Community transactions.. To date, a failure to satisfy this condition has not excluded the possibility of applying the “np” (non-taxable) rate on the basis of favorable case law of CJEU. These favorable rulings shall not apply after the VAT Act (and earlier, the VAT Directive) is amended.
A new condition of applying the “np” rate is the submission of a correct recapitulative statement (IC listing) by the supplier.
Additional rules of collecting and recognizing documents confirming the intra-Community delivery of goods are provided in the EU regulation implementing the VAT Directive.
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