Import of goods - a compendium of knowledge

In accordance with the applicable provisions of the VAT Act, import of goods is understood as the import of goods from the territory of a third country into the territory of the European Union.

Important! The act also defines the goods. They mean things and their parts, as well as all forms of energy (Article 2 (6) of the VAT Act).

It should be noted that the import of goods does not include the import of goods from the territory of the European Union to the territory of Poland.

Import of goods - taxpayers

Pursuant to Art. 17 sec. 1 point 1 and 2 of the cited act, taxpayers are legal persons, organizational units without legal personality and natural persons:

• for which the obligation to pay the customs duty, also in the case when the imported goods are duty free under the customs regulations or the duty on the goods has been suspended, in part or in full, or a preferential, reduced or zero duty rate has been applied;

• entitled to use the customs procedure including inward processing, temporary clearance, processing under customs control, including persons to whom, in accordance with separate provisions, the rights and obligations related to these procedures have been transferred.

Import of goods and place of taxation

The place of importation of goods is the territory of the Member State where the goods are located at the time of their entry into the territory of the European Union. However, for certain customs procedures or destinations, the place of importation of goods is the territory of the Member State where the goods will cease to be subject to those procedures and destinations. Applies to:

• inward processing procedures in the suspension system,

• temporary admission procedures with total relief from import duties,

• customs warehousing procedures,

• transit procedures, including temporary storage, before assigning a customs-approved treatment or use,

• destination - entry of goods into a free zone or free warehouse.

Tax base for importing goods

The taxable amount for the importation of goods is the customs value increased by the duty payable. However, if the subject of import are goods subject to excise duty, the taxable amount is the customs value increased by the duty and excise duty due.

In addition, the VAT Act regulates specific rules for determining the tax base in the case of:

• goods placed under the outward processing procedure - the taxable amount is the difference between the customs value of the compensating or replacement products released for free circulation and the value of temporarily exported goods, increased by the duty due. If the subject of import are goods subject to excise duty, the taxable amount is the difference between the customs value of the compensating or replacement products released for free circulation and the value of temporarily exported goods, increased by the duty and excise duty due;

• goods placed under the temporary admission procedure with partial relief from import duties - the taxable amount is the customs value increased by the duty that would be payable if the goods were to be released for free circulation. If the subject of importation are goods subject to excise duty, the taxable amount is the customs value plus the duty that would be payable if the goods were released for free circulation, and the excise duty;

• goods placed under processing under customs control, the taxable amount is the customs value plus the duty that would have been payable had the goods been placed under the release for free circulation procedure. Should excise duty occur, the basis includes the duty payable and the excise duty.

In the procedures described, the tax base also includes additional costs, provided that they have not been included in the customs base. This applies to such costs as: commission, transport, packaging or insurance incurred to the first destination in the country.

Important! The first place of destination in the territory of the country should be understood as the place mentioned in the transport document or other document on the basis of which the goods are imported. However, in the absence of such documentation, the first place of transhipment within the territory of the country is considered to be the first destination.

Importantly, the tax base also includes other fees charged by the customs authorities in connection with the importation of goods.

Exemptions in the import of goods

Pursuant to the provisions of the Value Added Tax Act, import tax is exempt:

• goods placed under the inward processing procedure under the suspension system within the meaning of the customs legislation;

• goods placed under the temporary admission procedure with total relief from import duty;

• gold by the National Bank of Poland;

• goods returning from the territory of a third country, duty-free, carried out by the taxpayer who previously exported these goods;

• to ports by sea fishermen of their own catch, not yet delivered, unprocessed or preserved for the purpose of delivery;

• human organs and breast milk;

• blood, plasma, whole plasma, blood cells or blood products derived from human origin, not being drugs;

• currency, bank notes and coins used as legal tender, excluding collectors' items which are gold, silver or other metal coins and banknotes which are not normally used as legal tender or which have numismatic value;

• goods by the armed forces of states other than the Republic of Poland, which are signatories to the North Atlantic Treaty, for the use of such forces or civilian personnel accompanying them, or for the supply of their messes and canteens, if these forces take part in joint defense operations;

• gas in the gas system or electricity in the power system.

Pursuant to Art. 51 sec. 1 of the VAT Act, the import of goods placed in shipments sent from the territory of a third country directly to the recipient residing in the territory of the country is exempt from tax, provided that the total value of the goods in the shipment does not exceed the amount expressed in PLN corresponding to the equivalent of EUR 22, with the exception of:

• alcoholic beverages,

• tobacco and tobacco products,

• perfumes and toilet waters.

Customs clearance procedures

Importers importing goods from outside the EU are required to calculate and demonstrate the tax amount in the customs declaration (using the appropriate rates, except for taxpayers who use a single permit to use the simplified procedure).

However, if the customs authority finds that the declared amount is incorrect, it issues a tax decision in the correct amount. Then the taxpayer is obliged to pay the calculated amount of tax within 10 days from the date of notification by the customs authority about the amount of tax receivables.

When importing goods, a number of formal and legal requirements must also be met, which are important if the goods are to be allowed for sale in the European Union.

Simplified procedure

In some situations, entrepreneurs may use the simplified procedure when importing goods. In this way, they settle the tax in the tax declaration submitted for the period in which the tax obligation for the import of these goods arose, i.e. without the need to pay the tax to the customs office in advance. Certain conditions must be met, such as:

• notification of the competent head of the customs office and the head of the tax office of the intention to settle the tax in the simplified procedure before the beginning of the settlement period from which such settlement will be applied,

• presenting to the head of the customs office, before which the taxpayer carries out the formalities related to the import of goods, issued not earlier than 6 months before the import:

• certificates of no arrears in payments of due social security contributions and in payments of individual taxes constituting the income of the state budget, exceeding separately for each title, including separately for each tax, respectively 3% of the amount of contributions due and tax liabilities due in individual taxes; the share of arrears in the amount of contributions or tax is determined in relation to the amount of due payments for the settlement period to which the arrears concern,

• confirmation of registration of the taxpayer as an active VAT payer.

Extension of the deadline for VAT settlement for authorized business entities

From January 1, 2015, regulations apply, on the basis of which the deadline for VAT settlement was extended by the so-called authorized traders. Such status may be obtained by an entity which:

• complies with customs regulations,

• has a system enabling the management of commercial records, thanks to which it is possible to carry out proper customs control,

• properly documents its solvency,

• meets safety requirements,

• has the appropriate AEO certificate.

Having this status allows you to take advantage of many amenities in the European Union. Entrepreneurs with the status of an authorized economic operator are subject to fewer customs controls or have the possibility to apply for an inspection in a place other than the customs office.

Taxpayers with the status of authorized economic operator:

• acting in his own name and on his own behalf or

• on behalf of and for whom a customs declaration is submitted by a direct representative within the meaning of customs regulations

- they can settle the amount of tax due on the import of goods in the tax declaration submitted for the period in which the tax obligation for the import of these goods arose.

Import of goods and a single license

Taxpayers using a single permit may settle VAT on the import of goods under a special procedure. Namely, they calculate the amounts due in the declaration for the import of goods, the so-called import declaration (VAT-IM). Such a document is submitted at the latest on the 16th day of the month following the month in which the tax obligation arose. At the same time, the obligation to pay the tax arises.

Import of goods, or maybe WNT?

You should also analyze the situation in which the entrepreneur imports goods from a non-EU country, but the goods have first been delivered to another EU country. Let us analyze the situation with an example.

Example 1.

An entrepreneur from Poland, registered for the purposes of intra-Community transactions, purchased goods from a contractor from China. The goods were first imported to Germany, where they underwent a customs clearance procedure carried out by a German customs representative. Then the goods were transported by a German transport company to the Polish ordering party.

In the discussed situation, the purchase of goods made by a Polish entrepreneur in a country outside the EU will not be an import of goods for the Polish buyer, but an intra-Community acquisition of goods. According to EU regulations, the place of importation of goods is the Member State on whose territory the goods are located at the time of their introduction into the Community. Since the goods were introduced into the EU on the territory of Germany, it is in this country that the import of goods (i.e. by the German taxpayer) should be demonstrated.