Purchase of a new means of transport from abroad by a natural person

In a situation where a natural person purchases a passenger car from another natural person from abroad, such an event does not have any VAT consequences. The situation is completely different when it comes to purchasing a new means of transport. In the article below, we will analyze what tax consequences this has in terms of VAT.

Definition of a new means of transport

At the beginning, it is necessary to indicate the definition of a new means of transport, only those meeting the statutory criteria will be subject to special regulations of the VAT Act.

As we can read in Art. 2 point 10 of the VAT Act, new means of transport are understood to be intended for the transport of persons or goods:

1. Land vehicles powered by an engine with a cylinder capacity greater than 48 cubic centimeters or with a power greater than 7.2 kilowatts, if they have traveled no more than 6,000 kilometers or not more than 6 months have elapsed since they have been put into service; the moment of putting a land vehicle into service is the date on which it was first registered for entry into road traffic or on which it was first subject to registration for the purpose of putting into road traffic, whichever date is earlier; If the date of first registration of a land vehicle or the date on which it was subject to first registration cannot be determined, the moment of putting the vehicle into service shall be the date on which it was issued by the manufacturer to the first buyer or the date on which it was first used for demonstration purposes by the manufacturer;

2. vessels with a length of more than 7.5 meters, if they have been used for no more than 100 working hours on the water or no more than 3 months have elapsed since their release for use, with the exception of sea-going vessels referred to in Art. 83 sec. 1 item 1; the moment of putting the watercraft into service shall be the date on which it was delivered by the manufacturer to the first buyer or the date on which it was first used for demonstration purposes by the manufacturer;

3. aircraft with a maximum take-off mass greater than 1550 kilograms, if they have been used for no more than 40 working hours or no more than 3 months have elapsed since their entry into service, with the exception of means of air transport referred to in art. 83 sec. 1 point 6; the moment the aircraft is put into service is the date on which it is issued by the manufacturer to the first purchaser or the date on which it is first used for demonstration purposes by the manufacturer.

When talking about new means of transport, one should follow the definition contained in the VAT Act. However, the colloquial meaning of this phrase should not be used.

Purchase of a new means of transport - VAT obligation

VAT tax applies to taxpayers running a business. The exception to this general rule is the purchase of a new means of transport.

In a situation where a new agent is purchased from a seller from another EU country and then the vehicle is brought to Poland, we are dealing with an intra-Community acquisition of goods (WNT).

Basically, intra-Community acquisition of goods occurs when both parties to the transaction are VAT registered for tax purposes.

However, as stated in Art. 9 sec. 3 of the VAT Act, the provisions on intra-Community acquisition of goods shall apply mutatis mutandis to other persons who carry out transactions related to the new means of transport.

In addition, it is worth recalling that in the case of WNT, the obligation to settle the tax rests with the buyer. This, in turn, means that a natural person from Poland purchasing a new means of transport from another EU country (e.g. Germany) will be obliged to settle VAT in Poland on this account.

Finally, let us also point out that the tax obligation in the case of intra-Community acquisition of new means of transport arises upon receipt of these goods, but not later than upon the issuance of the invoice, by the value added tax payer.

In a situation where a new means of transport is purchased from another EU country, the obligation to settle the tax rests with the natural person performing the WNT. As a consequence, the Polish buyer should pay VAT due on this account.

Purchase of a new means of transport - the matter of paying VAT

According to Art. 103 paragraph 3 of the VAT Act, VAT must be paid within 14 days from the date of the tax obligation. Therefore, please note that, unlike in the case of general rules, the tax payment deadline is not the 25th day of the month following the month in which the tax obligation arose.

The taxpayer must also submit a VAT-10 declaration within 14 days from the date the tax obligation arises. It is a special type of declaration of tax on goods and services on intra-Community acquisition of new means of transport.

In the VAT-10 declaration, the taxpayer is obliged to show the tax base and the amount of tax payable to the tax office.

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Example 1.

A natural person from Poland purchased a car that meets the criteria of a new means of transport from a seller from Germany. As a result, within 14 days from the date of receipt of the car, the taxpayer should submit a VAT-10 declaration to the Polish Tax Office and pay VAT at the rate of 23%.

It should also be emphasized that in such a situation the taxpayer is obliged to pay VAT, however, he is not entitled to deduct the input tax on this account. Only active VAT taxpayers who use the purchased goods to perform taxable activities are entitled to this type of entitlement.This is not the case in the described case, and therefore a natural person purchasing a new means of transport cannot deduct the input tax.

Persons purchasing new means of transport are required to submit a VAT-10 declaration and pay the tax within 14 days from the date of the tax obligation.

Purchase of a new means of transport and the obligation to submit VAT-23

In connection with the purchase of a new means of transport from abroad, another obligation arises in relation to the taxpayer. It is about the need to submit VAT-23 information.

As Art. 103 paragraph 5 of the VAT Act, taxpayers are required to submit to the head of the tax office, in accordance with the agreed template, the VAT-23 information on the purchased means of transport. The information shall be accompanied by a copy of the invoice confirming the purchase of the means of transport by the taxpayer.

In the VAT-23 information, the taxpayer indicates whether the object of purchase is a new means of transport and what type it is (land, floating or air vehicle).

Taxpayers should remember that in connection with the purchase of a new means of transport, in addition to the need to submit a VAT-10 declaration, the VAT-23 information on the purchased new means of transport should also be submitted.

In conclusion, we can indicate that when a natural person purchases a means of transport from abroad, no tax obligations arise. This subject changes dramatically when we are dealing with a new means of transport. In this case, the taxpayer has to submit a VAT declaration and pay the tax on this account.