Since 1 July 2020, new rules on chain transaction taxation have been in force in Poland in connection with Council Directive (EU) 2018/1910 of 4 December 2018. The new rules are aimed at harmonising the settlement of chain transactions across the EU.
Category: Value added tax
On 1st July, the regulations implementing the provisions of the EU Directive 2018/1910 (the so-called quick fixes package) concerning, among others, the sale of goods using the call-of-stock procedure entered into force. The mentioned directive unified the regulations of EU countries, among other things, with regard to the rules of taxation of supply of goods to other EU countries. Thanks to the new regulations, companies moving products from one EU country to another for later sale will avoid the obligation to additionally register as VAT payers in the country of destination of goods.
From 1 July 2020 VAT on the import of goods to Poland can be settled directly in the tax declaration. Previously, this required a special permit. The aim of the amendment is to improve the competitiveness of Polish ports, which until now have been losing the battle for the customer with i.a. German and Dutch ports. In these countries, the possibility of non-cash settlement of imports for all taxpayers has been long provided for. The new rules for settlement of the VAT will avoid freezing of funds and will have a positive impact on the financial liquidity of companies.
Have you been punished for irregularities in VAT settlements with a mandate in Poland? Even if you accept this fine, failure to complete the necessary formalities on time may expose you to further problems.
Do you sell goods or services in Poland and have not yet registered for VAT in Poland? Or maybe you make purchases in Poland and have not deducted the tax? Do not hesitate!
An entity conducting VAT-taxed activity in Poland shall report it in advance. However, failure to make such a notification on time does not release you from the obligation to submit tax returns and settle the VAT.
New rules for the split payment apply from 01/11/2019. This mechanism is based on the fact that the buyer can only transfer a net amount to the current account of the seller. The VAT is transferred to a special VAT bank account. The funds in the VAT bank account belong to the seller, but cannot be freely disposed. The funds may be used in particular to settle tax or other public law liabilities. A VAT bank account is automatically opened by the Tax Office, but this does not apply to foreign entities that do not have a bank account in Poland.
From 01/01/2020 VAT-tax payers are obliged to make transfers to the bank account indicated in the so-called white list if the invoice amount exceeds PLN 15,000 gross. Payment to an account not included in the list will have the following consequences:
On 01/01/2020, the European changes to the VAT law came into force (so-called Quick Fixes). The new rules concern the following areas:
- New requirements regarding the EU registration for VAT purposes when carrying out intra-Community supply
- New documentation requirements to prove intra-Community supplies
- Call-off-Stock warehouse
- Chain transactions