In the case of export sales of goods by a Polish company to another EU country with their subsequent sale outside the EU, what are the requirements for applying the 0% VAT rate? This article is about this.

Export of goods by a Polish company outside the EU is subject to a 0% VAT rate if the following conditions are met: registration as a VAT payer and export of goods from the territory of Poland to a third country.

In this case, the export of goods may occur from:

• the Supplier (seller) or on his behalf, or
• the Buyer, who is outside the country or on his behalf.

In the first case, there is the so-called direct export, in the second case – indirect export. This division is important due to the condition that allows the application of the 0% rate – the presence of documents regarding the export of goods from the buyer in the case of indirect export.

For example, indirect export is present when a Polish company sells goods to a German company, which sells goods to a Kazakhstan company. The German company sells goods to the Kazakhstan company under the terms of indirect export “Export works (EXW) – Place in Poland” according to Incoterms. The goods are delivered directly from Germany to Kazakhstan. Forwarding is ordered and paid for by the Kazakh company. The Polish seller is obliged to make the goods available to the German buyer in its warehouse. Customs clearance is carried out in Poland, the exporter of the goods is the German company. According to the customs document SAD (Single Administrative Document), a customs declaration for export is issued on behalf of the German company.

In this case of indirect export, the VAT rate will be 0%, its application depends on the conditions:

1. The Polish company has a document (issued in the name of the buyer of the German company), in which the customs office of the place of departure (Poland) confirmed the export of goods outside the EU territory, and

2. Documents confirming the identity of the goods that are the subject of delivery and export, such as an export declaration.

Unlike direct export, the possibility of applying the 0% rate for indirect export is limited to the calculation period for filing a VAT return (month, quarter) during which the Polish company delivered the goods. The Polish exporter must receive a copy of the SAD from the German buyer during this period. Without receiving customs confirmation of export of goods, the supply is considered domestic. If a copy of the confirmation is received later than the current VAT calculation period, VAT adjustments for this period are possible. In this regard, in the case of indirect export, providing copies of export documents is an important condition of the export contract.

Basis:

Art. 41 pkt 4–9, 11 ustawa o VAT.

Art 2 pkt 8 lit a i b ustawa o VAT.

Art. 7 pkt 7 ustawa o VAT.