INTERNATIONAL TRANSPORT OF GOODS - THE MOST IMPORTANT INFORMATION - SERVICE-TAX

International transport of goods - the most important information

For the average person, the international transport of goods means the transport of certain products outside the country. However, an entrepreneur who is an active VAT taxpayer should rely on a slightly more detailed definition - in line with the Value Added Tax Act. Especially that international transport of goods most often requires the use of a specific VAT rate.

What is international transport?

Due to the fact that Poland is a member of the European Union, the export of goods to another Member State will not be considered international transport. In this case, however, we will be dealing with the provision of an intra-Community service.

However, to determine what international transport is, one should refer to Art. 83 sec. 3 points 1 of the VAT Act. The definition therein indicates that international transport is the transport or other way of moving goods:

from the place of departure (sending) within the territory of the country to the place of arrival (destination) outside the territory of the European Union,

from the place of departure (sending) outside the European Union to the place of arrival (destination) within the territory of the country,

from the place of departure (sending) outside the territory of the European Union to the place of arrival (destination) outside the territory of the European Union, if the route runs along a certain section through the territory of the country (transit),

from the place of departure (sending) in the territory of a Member State other than the territory of the country to the place of arrival (destination) outside the territory of the European Union or from the place of departure (sending) outside the territory of the European Union to the place of arrival (destination) in the territory of a Member State other than the territory of the country, if the route passes through the territory of the country for some distance.

Attention!

The above definition only refers to the transport of goods. Transport of people is defined in Art. 83 sec. 3 points 2 of the Act:

Art. 83 sec. 3 point 2

“[International transport] means the carriage or other means of transporting people by sea, air and rail:

From the place of departure within the territory of the country to the place of arrival outside the territory of the country,

From the place of departure outside the territory of the country to the place of arrival in the territory of the country,

· From the place of departure outside the territory of the country to the place of arrival outside the territory of the country, if the route passes through the territory of the country for some distance (transit). "

In accordance with the regulations, the international transport also includes international brokerage and forwarding, which are related to goods and passenger transport services. However, the operation where the places of origin and destination are indicated within the territory of the country, and the transport outside its borders takes place as transit, will not be transport.

VAT rates for international transport of goods

The previously indicated art. 83 of the VAT Act is not only informative in terms of defining the international transport of goods - it defines such economic operations for which the appropriate VAT rate is 0%.

For an entrepreneur providing international transport of goods, this means that when issuing invoices for such services, he has the right to apply a 0% tax rate. It is extremely important to correctly determine the nature of the transport service - otherwise it may turn out that the zero tax has been applied incorrectly. It is worth remembering that domestic transport of goods requires taxation at the standard rate of 23%, while intra-EU transport will be settled in the country of the recipient - in accordance with Art. 28b of the act.

In order for the taxpayer to be able to apply the 0% VAT rate, he must remember to document the international transport of goods in detail. Pursuant to Art. 83 (5) of the VAT Act, the necessary documentation includes:

in the case of transport of goods by a carrier or forwarder - a bill of lading or a forwarding document (rail, air, road, sea bill of lading, inland waterway bill of lading), used only for international transport or another document which clearly shows that as a result of transport from the place of shipment the border with a third country was crossed to the destination, and an invoice issued by the carrier (forwarder),

in the case of transport of imported goods - similar documents as in the above point and a document issued by the customs office, which clearly shows the fact that the value of the service is included in the tax base for the import of goods,

in the case of transport of goods by the exporter - proof of exportation of the goods,

in the case of passenger transport - an international air, ferry, ship or rail ticket issued by the carrier for a specific route of transport for a specific passenger.