Intra-Community supply of goods - intra-Community supply of goods
Intra-Community supply of goods (intra-Community supply of goods) is the export of goods from a country to another European Union country to an entity that has a valid EU VAT number. The goods must be delivered in compliance with the activities specified in Art. 7 of the VAT Act.
Buyer and supplier status for intra-community delivery of goods
Both the buyer of goods and the supplier must have a certain status.
- Value added tax payer identified for the purposes of intra-Community transactions in the territory of a Member State other than the territory of the country (has an EU NIP number from outside Poland).
- A legal person who is not a value added tax payer, which is identified for the purposes of intra-Community transactions in the territory of a Member State other than the territory of the country (has an EU NIP number from outside Poland).
- A taxpayer of value added tax or a legal person that is not a taxpayer of value added tax, operating as such in the territory of a Member State other than the territory of the country, not listed in points 1 and 2, if the subject of delivery are harmonized excise goods which, in accordance with the provisions on tax excise duty, are subject to the excise duty suspension arrangement or the excise goods movement with excise duty paid.
- An entity other than those mentioned in points 1 and 2, operating (residing) in a Member State other than Poland, if the subject of delivery are new means of transport (only the place of residence or activities outside Poland, in the EU).
- Registered as an active VAT taxpayer, not benefiting from the subjective exemption from this tax.
- A taxpayer who reported to the tax office the intention to make intra-Community transactions, as a result of which he may use the EU tax identification number, i.e. he is registered for the purposes of Community transactions.
- Other entity than mentioned in point 2 when the subject of delivery is a new means of transport.
Each supplier should check the validity of the EU VAT number received from the buyer in the "VIES" Information Exchange System. In the absence of a valid or valid EU NIP tax identification number, the transaction will be taxed at the domestic rate.
Not all exports of goods are an intra-Community supply of goods
Not every export of goods within the EU is treated as intra-Community supply. In addition to intra-Community delivery of goods, it may also be a mail order sale from the territory of the country or a movement of goods that is neither considered an intra-Community supply nor a mail order sale from the territory of the country, even though the goods are moved between two Member States.
A delivery considered to be a mail order sale from the territory of the country (not being intra-Community supplies, art.2 point 23 of the act on tax on goods and services) will take place when goods are shipped or transported from the territory of the country by a VAT payer (or on his behalf) to another country EU country of destination for dispatched or transported goods for:
- value added tax payer or
- a legal person that is not a value added tax payer or
- taxpayers who are not obliged to settle intra-Community acquisition of goods or
- another entity that is not a taxpayer of value added tax.
The movement of own goods, which are not considered to be intra-Community supplies, occurs when the goods will be installed or assembled, with or without a test run, for which the place of delivery is an EU country other than the territory of the country.
There is an exception when the transfer of own goods by a taxpayer to another EU country will be recognized with the intra-Community supply of goods (Article 13 (3) of the VAT Act). WDT takes place when a taxpayer transfers from the territory of the country to the territory of another EU country his own goods (belonging to his enterprise), the possession of which came into the territory of the country as part of their production, extraction, purchase, acquisition as part of intra-Community acquisition, import and which are intended to serve activities performed by him as a taxpayer in the territory of the EU country to which they were imported.
This means that intra-Community supply of goods is considered to be the movement of goods by a taxpayer who simultaneously conducts business in another EU country, and the goods transferred will be used there for activities performed as a taxpayer.
Registration with the tax office necessary for the intra-community delivery of goods
Before making the first intra-Community delivery, the head of the relevant tax office should be notified in the registration form (VAT-R) of the intention to start these activities by selecting square 1 in field 4. The status of a VAT-EU taxpayer is then obtained and, using the NIP number, must precede it with the code PL. If the taxpayer already has the status of an active VAT taxpayer, in the registration application, select square 2 in field 4 "data update". Additionally, in the declaration, check the box C.3 - 59 and attach the VAT-R / EU.
The taxpayer may use his NIP with the "PL" code preceding him only after he receives confirmation of the registration from the head of the Tax Office (VAT-5 UE). From that moment, the taxpayer uses the new NIP in the following situations:
- for WDT transactions,
- on VAT returns,
- on the summarizing statements he has to make quarterly.
In the event of cessation of the performance of WDT activities, this fact must be reported in writing to the head of the tax office by updating the registration form (VAT R / EU) within 15 days from the date of cessation of the activities. This is the basis for removing the taxpayer from the register as an EU VAT taxpayer. In the application, we also fill in item 8. depending on whether the taxpayer has submitted a deposit to the head of the tax office entitling him to receive a refund of the excess tax charged over the due tax within less than 180 days. The entity may also be removed from the register if the taxpayer fails to submit a tax declaration in the next six months or two consecutive quarters.
Guarantee deposit for intra-community delivery of goods
Submission of a guarantee deposit, property security or bank guarantee for the amount of PLN 250,000 shortens the waiting period for a direct refund of the excess input tax from 180 days - to 60 days, and even up to 25 days if additional conditions are met. The deposit may be submitted by:
- taxpayers commencing the performance of taxable activities in the period shorter than 12 months before submitting the notification on the intention to perform intra-Community transactions,
- taxpayers starting to perform activities subject to VAT.
The guarantee deposit is useful when the taxpayer applies for a tax refund to the bank account (direct refund).
Deadlines for submitting the declaration documenting the intra-Community delivery of goods
Reporting obligations in connection with WDT consist of:
- showing ICS in the VAT-7 declaration,
- submitting quarterly EU VAT summary information,
- providing information on exports made - INTRASTAT system.
The deadline for submitting 7-month and quarterly VAT returns is the 25th day of the month following the settlement period to the tax office applicable to the taxpayer. On the other hand, EU VAT is submitted by the 15th day of the month following the settlement period (or by the 25th day - if we settle accounts electronically).
The condition for applying the 0% rate is that the supplier has documents confirming the intra-Community supply of goods.
In the declaration, the intra-Community supply is settled in the month of receipt of the evidence confirming the intra-Community supply, but not later than in the third declaration in the quarter in which such tax obligation arose.
In the case of not receiving evidence confirming the intra-Community supply in the settlement period (quarter) in which the tax obligation arose, the taxpayer shows such delivery as domestic in the declaration (depending on the VAT rate in items 20 or 22-29, and not in item thirty). We also do not show this delivery in the EU VAT declaration.
However, if the taxpayer received the documents at a later date, it is possible to correct the declaration and prove the intra-Community supply of goods with a 0% rate and to prepare EU VAT summary information.
If intra-Community supplies exceed the so-called statistical thresholds, additionally fill in the INTRASTAT declaration.
The statistical thresholds for exports set for 2012 are:
- basic threshold - PLN 1,100,000,
- detailed threshold - PLN 72,000,000.
Entities whose turnover value is between the basic threshold and the detailed threshold are exempt from filling in the following fields of the INTRASTAT declaration:
- 7 - total statistical value in PLN,
- 12 - Code of the terms of delivery,
- 15 - Type of transport code,
- 20 - Statistical value in PLN.
INTRASTAT declaration for a given reporting period should be made not later than on the 10th day of the month following the reporting month. If the 10th day falls on a Saturday or a statutory holiday, the deadline for INTRASTAT notification shall expire on the first working day following such day.
Statistical value = invoice value + costs for that part of the transport that takes place in the Polish statistical territory (packaging costs, transport charges, docking fees, charges for loading into means of transport and storage, other costs, e.g. insurance).
Documentation of the intra-community delivery of goods
Documents confirming the intra-Community delivery of goods depend on the method of its delivery. We distinguish between 3 ways of delivering goods:
1) Carriage of goods via a carrier (forwarder)
- specification of individual items of cargo
- transport documents received from the carrier (some consignment notes), which clearly show that the goods have been delivered to their destination in the territory of an EU country other than the territory of the country. The information on the consignment note includes:
- the name and address of the sender, his signature and the establishment of the contracting carrier
- the destination of the shipment and the name and address of the recipient
- specification of the goods, their weight, number of packages, packaging and marking
- other information, required or permitted in accordance with the regulations, depending on the type of the concluded contract or the method of settling the receivables
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2) Transport directly by the supplier or buyer of the goods
- specification of individual items of cargo
- documents containing the name (or first and last name) and the address of the registered office or place of residence of the buyer and supplier of the goods
- the address to which the goods are transported, if different from the address of the registered office or place of residence of the buyer
- determining the goods and their quantity
- confirmation of receipt of goods by the buyer to the place of his seat, residence or other place indicated by the buyer in another country in the EU
- type and registration number of the means of transport in which the goods are exported or flight number - when the goods are transported by means of air transport
3) Export by the buyer of new means of transport without the use of another means of transport
- specification of individual items of cargo
- documents containing data enabling the correct identification of the supplier and buyer as well as the new means of transport, delivery date, signature of the supplier and buyer, buyer's statement on the export of the new means of transport outside the territory of the country within 14 days from the date of delivery and instruction to the buyer about the consequences of not complying with the obligation to export a new one means of transport outside the country within 14 days from the date of delivery, the so-called document of export
In the event that the mandatory documents do not clearly confirm this delivery, e.g. if the documents do not contain all the required information, the confirmation of such delivery may be supplementary documents.
The supplementary documents for the 3 above-mentioned deliveries of goods are presented in the table below:
|Supporting documents |
Invoices for intra-community delivery of goods
In the intra-Community supply of goods, the tax obligation arises no later than on the 15th day of the month following the month in which the goods were delivered. However, before delivery, the tax obligation arises at the time of issuing the invoice. If at least part of the required amount has been received before the payment of intra-Community supplies, an advance invoice may be issued with the right to apply the 0% intra-Community supply rate (a tax obligation arises on the date of issuing the invoice). If we do not issue an invoice for the advance payment, there will be no tax obligation - it is also associated with the risk of imposing a penal fiscal sanction.
Invoices confirming the intra-Community supply should contain the number of the taxpayer making the delivery and a valid code issued by the EU country. This EU identification number is awarded to active value added taxpayers (entrepreneurs). It is unchanging and means that the buyer should tax the purchase of goods in the territory of his member state.
Remember to enter the correct EU VAT number of the contractor on the invoice, because an incorrect EU VAT number deprives the taxpayer of applying the 0% rate.
Exceptions to this rule, which do not require the EU VAT number to be provided:
- If the subject of the intra-Community supply are new means of transport, the invoice confirming the delivery should include the date of approval of the new means of transport for use and the mileage of the vehicle - in the case of land vehicles, and the number of working hours of use of the new means of transport - in the case of water vehicles and aircraft.
- An invoice documenting the delivery of harmonized excise goods which, on the basis of the provisions on excise duty, are subject to the excise duty suspension arrangement or the excise goods movement procedure with excise duty paid.
Tax base for intra-community supply of goods
The tax base in WDT is:
- the amount due for the sale, increased by received grants, subsidies and other payments of a similar nature, having a direct impact on the price,
- the amount of received advances, advances, prepayments and installments as well as advances received for grants, subsidies and other payments of a similar nature.
The tax base is reduced by the amounts of rebates (rebates, discounts, accepted complaints and discounts) and by the value of returned goods, returned undue amounts of subsidies, subsidies and other surcharges of a similar nature.
It is possible to issue correcting invoices to previously issued invoices when the original invoice contains an incorrect EU VAT number (which allows the application of a preferential 0% rate) or the tax base will be reduced (increased) as a result of:
- give a discount,
- return of the goods or parts thereof by the buyer,
- return to the buyer of undue amounts under the Act on Prices,
- return to the buyer of an advance, prepayment, down payment or installment, subject to VAT.
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When a taxpayer transfers his own goods from the territory of the country to another EU country, the taxable amount is the purchase price of these goods, and when this price does not exist, it is the production cost determined at the time of their delivery.
Values on invoices expressed in a foreign currency should be converted at the following exchange rate:
- NBP average of a given foreign currency on the last business day preceding the emergence of the tax obligation - for VAT purposes,
- NBP average on the last business day preceding the day of obtaining income (on the day preceding the day of economic operation) - for income tax purposes.