The buyer is the issuer of the document in the import of services (Article 28b)

Invoices - still extremely important in Poland - are not that important to most foreign contractors. In the case of importing services, during which there is often no direct contact between entrepreneurs, it is difficult to ask for an invoice. It is therefore worth knowing that the Polish buyer, in the case of importing services, has the right to document such a transaction by himself.

Import of services - rules of tax settlement

Despite many amendments that will appear in the VAT Act in 2014, the import of services will remain virtually unchanged. The definition will continue to be based on Art. 2 clause 9, according to which the import of services should be understood as such provision of services for the performance of which the recipient is the taxpayer and for which the additional conditions listed in Art. 17 sec. 1 point 4 of the Act.

Therefore, in line with the above, we are dealing with imports of services when:

• the service provider is a taxpayer who has no registered office and no fixed place of business in the territory of the country, and in the case of services to which art. 28e, the taxpayer is not registered in accordance with article 5. 96 sec. 4;

• the service recipient is:

  • in the case of services to which Art. 28B-the taxpayer referred to in art. 15 or a non-taxable legal person referred to in art. 15, registered or obliged to register in accordance with art. 97 sec. 4,

  • in other cases - the taxpayer referred to in art. 15, having a registered office or a permanent place of business in the territory of the country or a non-taxable legal person referred to in art. 15, established in the territory of the country and registered or obliged to register in accordance with art. 97 sec. 4.

However, according to the aforementioned Art. 28b, the general rule is that the place of supply of services is the place where the taxpayer who is the recipient of the service has its registered office. The exceptions are situations where:

• services are provided for the taxpayer's permanent place of business, located in a place other than his seat - then the appropriate place will be his permanent place of business,

• the taxpayer does not have a seat or a permanent place of business - then the place of provision of services is the place of residence or stay,

• the services are intended solely for the personal purposes of the taxpayer or its employees - then the provisions of Art. 28c.

Summarizing the above provisions, the tax obligation in the case of importing services rests with their recipients. Therefore, if there is no accounting document on the basis of which such a settlement can be made, the taxpayer should take care of the documentation on his own, in accordance with the required deadlines.

Documentation in accordance with the deadlines

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From the beginning of 2014, the tax obligation for the import of services will arise on general principles, in the same way as when making domestic transactions. In this case, the invoice loses its importance - according to Art. 19a paragraph. 1, the tax obligation arises upon the delivery of the goods or the performance of the service. In the event that all or part of the amount due for a given good or service is paid before these dates, then - in accordance with Art. 19a paragraph. 8 - the tax obligation will arise on the date of receipt of this sum.

Therefore, if it happens that an entrepreneur who imports services does not receive an invoice from his contractor documenting such a purchase, he should use a handwritten proof for settlements. Although there is no longer an obligation to issue internal invoices, this type of invoice can be used for billing for the import of services. However, it may also be other internal evidence issued as part of the activity. It is important to base it on the actual proof of payment - in practice, a bank statement is most often used in this matter. Correspondence with a foreign contractor or confirmations, e.g. from an online store, may also be helpful.

As you can see, the lack of an invoice documenting the import of services does not exclude the possibility of VAT settlement. On the contrary - as the recipient is responsible for the correct and timely settlement of this fee, it may be necessary to document the transaction by hand.