Differences between direct and indirect exports

The export of goods involves their export from Poland to the territory of a third country. Taxpayers should pay attention to the differences between direct and indirect exports. This is due to the application of the 0% VAT rate, including the completion of the export documentation.

The territory of third countries is defined as countries that are not members of the European Union. For the export to take place, the goods must have moved.

The definition of export is included in Art. 2 points 8 of the Value Added Tax Act. Pursuant to the wording of the Act, from April 1, 2013, the export of goods is understood as the delivery of goods sent or transported from the territory of the country outside the territory of the European Union by:

• a supplier or on his behalf (direct export), or

• a buyer established outside the territory of the country or on its behalf, with the exception of goods exported by the buyer himself for the purpose of equipping or supplying recreational craft and tourist aircraft or other means of transport for private purposes (indirect export)

- if the export of goods outside the territory of the European Union is certified by the customs office specified in the customs regulations.

 

In order to be able to apply the preferential 0% VAT rate to the transaction of exporting goods, it is necessary to complete the documentation proving the exportation. This is stated in Art. 41 sec. 11 of the VAT Act. These documents are, in the case of:

• direct export - an electronic document received from the ICT system used to handle export declarations (IE-599) or a paper-based export declaration (original card 3 of the SAD document),

• indirect export - a printout of a document from the ICT system used for handling export declarations confirmed by the customs office (copy of IE-599) or a copy of the export declaration in paper form, confirmed by the customs office (copy of card 3 of the SAD document).