The export and import of goods are influenced by many aspects: finance, customs, logistics. One of the main aspects is VAT (Value Added Tax). In this article we will look at the VAT conditions for the export and import of goods to (from) the EU and Poland.

Information on the conditions for exporting and importing goods to and from the EU can be found on the Rules of Origin Self-Assessment (ROSA) service. This service allows you to compare product-specific rules under different EU trade agreements when exporting / importing into the EU or trading goods within the EU. Here you can check the conditions, tariffs, procedures, statistics, VAT, Recycling Fee (RCF) and Customs Clearance Fee (CCF) by product name or code. Here we provide brief and key information from this service.

Taxable transactions.

The following transactions are subject to VAT:

• supply of goods or services,
• acquisition of goods with the Community,
• import of goods.

In the case of importation of goods, VAT is usually charged when carrying out customs clearance procedures for the purpose of releasing them for consumption in an EU country or Poland. However, when goods are imported into one EU country but are intended for use or consumption in another, they may be subject to a VAT deferral agreement. Under this agreement, VAT will be charged in the EU destination country rather than in the EU entry country.

In the case of export of goods, VAT taxation and Vat payment are determined by the country of export.

Intra-Community transactions between VAT-registered traders will be charged in the EU country to which the goods are sent.

Import VAT payment.

Import VAT payments are treated in the same way as customs duties. Taxable persons must fill out and submit to the customs the Single Administrative Document, which must include the goods’ value, place of origin, consignee, destination, price, weight, etc.

Tax base for VAT on imports.

The VAT taxable value is the invoice’s price or value for customs purposes, plus plus additional costs:

• Customs duties, taxes, charges levied in connection with imports, excluding Vat, which is levied and
• Commission, packing, wrapping, transport and insurance costs.

Exemptions.

The supply of certain goods is exempt from VAT:

• imports of human organs, milk or blood,
• imports of bank notes,
• imports of gold by the Central Bank,
• educational, art and science services,
• export services,
• transactions relating to special customs procedures.

VAT rates.

Standard rate (23% in Poland) applicable to all goods, which are not subject to reduced rates.

Reduced rate (8% in Poland) is applied to some goods connected with health care, groceries, building materials and services connected with housing construction, hotel services and transport of persons.

Super reduced rate (5% in Poland) covers the sale of certain unprocessed or semi-processed produce of agriculture, forestry, hinting and fishery.

Depending on the products and countries, a zero rate (0%) may apply.

VAT rates for EU countries are link and link.

VAT registration.

Traders not established in country, who make taxable transactions in this Member State, must register for VAT purposes or appoint a tax representative. Registration in Poland should be done using the form provided in VAT Registration form.

VAT refund.

Traders who are not registered in a country and willing to claim a refund of any VAT paid in its territory must complete an official form and submit it, along with all related documents, to the competent tax authority. In Poland this is the Tax Administration Chamber.

Also, the VAT (Duty Free) Retail Export Scheme allows non-EU travellers leaving the EU to reclaim VAT charged on certain goods purchased while visiting the country. Additional information in Poland: VAT refunds.

An enterprise listed as the actual recipient of goods on an import declaration may deduct the VAT it paid on importation, provided that it meets the formal and substantive conditions for exercising its right to deduction.

Reverse charge of import VAT.

The reverse charge of import VAT is a tax that allows a business not to pay VAT on imported goods, but to declare and pay it directly to the tax authorities. When a taxable business imports goods from a third country, it must declare the VAT due to the tax authorities directly in the VAT return. The business or importer must then collect the VAT due directly from the tax authorities on the basis of this import and immediately deduct it on the same return.

Suspensive arrangements and free zones.

Goods imported under certain circumstances will be temporally exempt from taxation, while they remain so:

• goods are placed in temporary storage,
• goods under inward processing relief (duty suspension system),
• goods placed in a customs warehousing or free zones,
• temporary importation,
• transit procedures.

Free zones and free warehouses are areas within the European Customs Union territory where goods can be introduced free of duties, VAT or excises. They can be kept in those areas for as long as it is necessary until they are dispatched.

The goods under deferred payment of VAT are avoiding pre-financing of this tax. In such cases, the amount due is not debited from a trader's account until the 15th of the month following the import.

Export without VAT.

Supplies of goods dispatched or transported outside the EU territory are exempt from VAT. To apply this exemption, the business must be able to provide evidence that the goods have actually left the EU. Proof that the goods have actually left the EU territory is established on the basis of a list of supporting documents.