INTRASTAT is a statistical system that allows the collection of data on the movement of goods between the countries of the European Union. Intra-Community acquisition of goods, intra-Community supply of goods and mail order within the territory of the country are subject to declaration. However, domestic transactions are not subject to the declaration requirement. Check who is obliged to make a declaration and when.
The rules on foreign currency invoices and their conversion for VAT purposes often cause problems for entrepreneurs. When issuing an invoice in a foreign currency, the seller is obliged to provide information on the amount of VAT converted into Polish zlotys. If the amount of VAT in Polish zlotys is missing, the invoice is considered defective and, according to the tax authorities’ position in tax interpretation, the right to deduct VAT may be questioned.
Since the New Year, some of the changes from the so-called SLIM VAT package (simple, local and modern) prepared by the Ministry of Finance, which we analysed in one of the previous entries, have come into force. The new regulations were intended to introduce tax simplifications for entrepreneurs, but they already raise some doubts among taxpayers. Below we have described the most important changes, which entered into force on 1 January 2021.
According to the sentence of the Supreme Administrative Court (NSA) of 4 August 2020 (signature I FSK 1848/17), regular supplies from the warehouse are continuous if the agreement concluded by the parties shows that they will be repetitive on predetermined dates. The tax liability will arises at the end of the settlement period to which the payments relates and the VAT return itself can be made in joint manner.
For a few years now, with the development of the RES market in Europe, an increase in interest in Power Purchase Agreements (PPAs) can be observed. Corporate PPAs are a solution allowing for the sale of electricity from renewable energy sources between the producer of electricity and the customer, excluding trading companies.
15 October 2020 the Court of Justice of the European Union (CJEU) has passed an important sentence (ref. C-335/19), concerning the possibility of applying relief for bad debts and the incompatibility of Polish VAT regulations with EU law in this area.
The sentence of the Polish Supreme Administrative Court (NSA) of 14 January 2020 introduced significant changes in the interpretation of tax regulations concerning the carry forward the tax surplus to the following accounting period. The Polish Supreme Administrative Court (NSA) ruled that the 5-year limitation period applies also to the surplus of input tax, with the consequence that it cannot be carried forward endlessly.
On 29 October, Polish Vice-Minister of Finance @Jan Sarnowski and Dutch Ambassador Daphne Bergsma signed the Protocol amending the Convention on the avoidance of double taxation with regard to taxes on income.
The changes take into account Poland’s tax policy and the solutions provided for in the OECD BEPS (Base Erosion and Profit Shifting) project in terms of sealing the international tax system and combating tax fraud.
It often happens that goods of a Polish or foreign entrepreneur are delivered to a warehouse located in Poland, and from there the further sales (including foreign sales) are planned. Sales to private individuals from Poland abroad (B2C) are so-called distant sale to a person who is not a VAT payer. In this situation some entrepreneurs wonder when VAT shall be paid in Poland and under what circumstances in the destination country. This question is important because possible omissions in this respect may lead to liability for non-payment of the tax due. Entrepreneurs should also think about the documents used to confirm payment of VAT due abroad in order to avoid additional taxation in Poland.
The distance sales of goods concern the supply of goods to a private individual (B2C), where the goods are dispatched or transported from one Member State to another. An example of such situation is the sale of goods from a warehouse located in Poland to a private individual in Germany. The distance sale from Poland is currently taxable in the Member State of dispatch of the goods, unless this sale exceeds the distance sales limit to the country of destination or a declaration to the tax office for voluntary taxation in that country was submitted. These rules will change in 2021.