Reverse charge - changes in VAT regulations


From January 1, 2017, further changes were made to the settlement of transactions under the reverse charge. What modifications to the regulations in this area have the legislator introduced? Find out by reading our article what the reverse charge on VAT looks like in 2017.

Reverse charge in VAT - basic information

The reverse charge in VAT consists in shifting the tax settlement obligation onto the buyer. Thus, the seller issues an invoice without the VAT rate charged. The list of goods covered by this procedure was included in Annex 11 to the Act. Among the goods you can find:

- ferroalloys,

- ribbed sheets of non-alloy steel,

- cold drawn wire, made of non-alloy steel,

- unwrought lead.

Additionally, it should be noted that the issue of the reverse charge has been regulated in Art. 17 (1) (7) of the VAT Act, according to which the reverse charge in VAT is applied when:

  • making the delivery is the taxpayer referred to in art. 15, where the sale is not exempt from tax due to the turnover limit,

  • the buyer is the taxpayer referred to in art. 15, registered as an active VAT taxpayer,

  • the delivery is not covered by the exemption referred to in Art. 43 sec. 1 paragraph 2 or article. 122.


According to Art. 17 sec. 1c in the case of deliveries of goods listed in item28-28c of Annex 11 to the Act, the reverse charge on VAT is applied if the total value of these goods in an economically uniform transaction including these goods, excluding the tax amount, exceeds the amount of PLN 20,000. This applies, inter alia, to sales:

  • mobile phones,

  • video game consoles.

A single economic transaction is a transaction involving a contract where there are one or more deliveries of goods, even if they are made on the basis of separate orders or more than one invoice documenting individual deliveries is issued.

The application of the indicated restrictions is motivated by numerous frauds of VAT refund by shifting the tax settlement obligation by the buyer.

Reverse charge in VAT - changes from 2017

The fundamental change introduced in 2017 under the amendment to the provisions of the VAT Act is the obligation to apply the reverse charge mechanism to construction services. However, it should be remembered that the following conditions must be met (Article 17 (1) (8) of the VAT Act):

  • the service provider is the taxpayer referred to in art. 15 of the VAT Act, where the sale is not tax-exempt pursuant to Art. 113 paragraph. 1 and 9 (i.e. up to the limit of PLN 200,000);

  • the service recipient is the taxpayer referred to in art. 15, registered as an active VAT taxpayer.

Importantly, the provision on the reverse charge in the case of construction services is applied if the service provider provides these services as a subcontractor (Article 17 (1h) of the VAT Act).

More on the subject of settlement of construction services in the article: Reverse charge - construction services.

From the beginning of the new year, sales of silver, gold, platinum and precious metal products were also subject to a reverse charge. In addition, processors were added to the extended catalog. In the case of the latter group, the principle of tax settlement under the reverse charge will apply only to economically uniform transactions involving processors with a value exceeding PLN 20,000.

Summary national information and reverse charge

In the VAT Act, pursuant to Art. 101a, an obligation was imposed on entrepreneurs to submit domestic summary information concerning the sale of goods and services referred to in Art. 17 sec. 1 point 7 and 8 of the VAT Act.

The seller is obliged to submit the aforementioned information for the period in which the tax obligation arose, by the 25th day of the month for the month following the given settlement period. Importantly, the regulations provide for the possibility of submitting a correction of summary information in the event of an error (similar to VAT-7, VAT-7K and EU VAT declarations).


From 2017, the summary information of VAT-27 is submitted only for monthly periods and in electronic form!

The main purpose of introducing the domestic recapitulative information was to increase control over transactions subject to the reverse charge mechanism, which in turn is to contribute to the reduction of fraud.