E-COMMERCE VAT PAYMENT - WHERE AND WHEN TO PAY VAT OSS AND VAT IOSS? - SERVICE-TAX

E-commerce VAT payment - where, how and when to pay VAT OSS and VAT IOSS?

An entrepreneur using the amenities introduced as part of the e-commerce VAT package is obliged to pay the VAT due. Both in the case of registration for the EU VAT OSS procedure and the VAT IOSS import procedure, the seller is obliged to submit a settlement declaration on the basis of which the said tax is regulated. Let's check what an e-commerce VAT payment should look like, i.e. to which account and when to pay the tax and how to complete the transfer order!

Payment of e-commerce VAT and the VAT OSS procedure

When conducting intra-Community distance sales of goods (the so-called ESPO) or providing electronic, telecommunications or broadcasting services (the so-called TBE), the taxpayer may settle VAT under the EU VAT OSS procedure. Pursuant to Art. 130c of paragraph 1. 1 of the VAT Act, the entrepreneur, after registering to the VAT OSS, is obliged to submit the VIU-DO declaration, on the basis of which VAT is settled. The obligation to submit a declaration also occurs when no sale took place in a given period. The VIU-DO declaration is submitted only electronically for quarterly periods until the end of the month following each quarter, even if this date falls on a Sunday or a public holiday. For example, VIU-DO for the third quarter of 2021, taxpayers are required to submit by October 31, 2021 (the fact that it is Sunday is irrelevant). After submitting the VIU-DO declaration, the taxpayer will each time receive - to the e-mail address provided in the VIU-R registration application - a unique reference number (the so-called UNR). This number is very important because without it it will not be possible to correctly order a transfer to the office. Payment of e-commerce VAT under the OSS VAT procedure should take place by the end of the month following the quarter to which it relates. If the last day of the month falls on a Sunday or a public holiday, the payment date is moved to the next business day. For example, VAT resulting from VIU-DO for the third quarter of 2021, taxpayers are required to pay by November 2, 2021, because October 31 falls on Sunday, and November 1 is a holiday. When completing the transfer order for the VAT OSS procedure, only the UNR number must be included in the title. According to the announcement of the Ministry of Finance, adding additional notes may result in payment rejection. The transfer should be made to the account of the Second Tax Office Warszawa-Śródmieście: 84 1010 1010 0165 9315 1697 8000. The payment of VAT should be made in the currency in which the VIU-DO declaration is made, i.e. in euro. A sample UNR for the EU VAT OSS procedure is PL / PLXXXXXXX / Q3.2021 Failure to make payments within the prescribed period not only will result in tax interest, because in a situation where:

the entrepreneur fails to pay the full VAT amount indicated in the VIU-DO declaration for each of the three immediately preceding calendar quarters and

does not settle these arrears within 10 days after the Head of the Second Tax Office Warszawa-Śródmieście sends a reminder and

the unpaid amount exceeds € 100 for each of these quarters

the authority will consider it as a systematic (persistent) failure to comply with the rules of the EU procedure and will register the economic operator ex officio from the EU procedure.

Payment of e-commerce VAT and the IOSS VAT procedure

Entrepreneurs who have registered for the import procedure and conduct distance sales of imported goods (the so-called SOTI) are required to collect VAT from buyers and account for this with the tax office. Pursuant to Art. 138 g of paragraph 1. 1 of the VAT Act, a taxpayer using the IOSS VAT procedure is obliged to send the VII-DO declaration on a monthly basis. The VII-DO declaration is submitted only electronically, by the end of the month for the previous month. If the last day of the month falls on a Sunday or a statutory holiday, this date shall not be postponed to the next working day. If there was no sale in a given month, the taxpayer should send the so-called zero declaration. After submitting the VII-DO declaration, the entrepreneur will each time receive a unique reference number (so-called UNR) to his e-mail address provided in the VII-R registration application. This number is used when completing the IOSS VAT transfer order. Payment of e-commerce VAT under the IOSS VAT procedure should take place by the end of the month following the month to which it relates. If the last day of the month falls on a Sunday or a public holiday, then the payment date is moved to the next business day. When completing the transfer order to pay VAT from the import procedure, the title of the transfer should include the given UNR. According to the announcement of the Ministry of Finance, adding additional annotations may result in payment rejection. The transfer should be made to the account of the Second Tax Office Warszawa-Śródmieście: 84 1010 1010 0165 9315 1697 8000. The payment of VAT should be made in the currency in which the VII-DO declaration is made, i.e. in euro. A sample UNR for the EU VAT OSS procedure is PL / IMXXXXXXX / 09.2021 Failure to make payments within the prescribed period will not only result in tax interest, because in a situation where:

the entrepreneur fails to pay the full VAT amount indicated in the VII-DO declaration for each of the three immediately preceding calendar months and

does not settle these arrears within 10 days after the Head of the Second Tax Office Warszawa-Śródmieście sends a reminder and

the unpaid amount will exceed € 100 for each of these quarters

the authority will consider it as a systematic (persistent) failure to comply with the rules of the EU procedure and will deregister the economic operator ex officio from the import procedure.

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The summary of the most important information before paying the e-commerce VAT under the EU procedure and the import procedure is presented in the table below:

VAT OSS

VAT IOSS

What declaration should I make?

VIU-DO declaration

VII-DO declaration

By when is the declaration submitted?

the last day of the month after the end of the quarter

the last day of the month for the previous month

Where is the declaration made?

Second Tax Office Warszawa-Śródmieście

What account is e-commerce VAT paid to?

84 1010 1010 0165 9315 1697 8000