VAT warehouse to be implemented in Poland
The Ministry of Finance has launched consultations on the concept of implementing the institution of VAT warehouse into the Polish legal order. The consultations will last until 3 April 2023.
What will the VAT warehouse give? It will enable the application of certain preferences. Indeed, EU law gives Member States the option to introduce solutions consisting in exempting certain transactions related to international trade in goods from VAT. The exemption may cover, inter alia, the supply of goods to customs warehouses, warehouses other than customs warehouses and free zones. This exemption has the character of an exemption with the right to deduct input tax and corresponds to the 0% VAT rate applicable in Poland. The Ministry of Finance assumes that the VAT warehouse will be a concept based on known customs warehouses.
The supply of goods under the VAT warehouse procedure is to be subject to the 0% VAT rate if the following conditions are jointly met:
– the taxpayer will issue an invoice documenting this supply using the CSEF and will indicate on the invoice the legal basis for the applicable 0% rate (supply of goods under the VAT warehousing procedure),
– the goods will be placed into the VAT warehouse,
– the taxpayer, before the expiry of the deadline for submission of the tax return for a given settlement period, shall receive from the purchaser a document confirming that the goods have been subject to the VAT warehousing procedure.
The provision of services in a VAT warehouse, directly related to the stored goods, shall also be subject to taxation at the 0% VAT rate.