VAT-23 declaration, i.e. the purchase of a means of transport from a Member State

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Elżbieta MAJCHRZAK
Junior Accountant at RSM Poland

Ilona KOZIEŁ
Accounting Assistant at RSM Poland

According to tax regulations, if our company purchases a vehicle from an EU Member State, it is an intra-community acquisition of goods. This creates additional obligations that we must fulfil as entrepreneurs. And regardless of whether we have decided to buy a used passenger car or a new one, we must prepare a VAT-23 declaration and prepare to pay VAT.

The process of acquiring means of transport - not as black as it is painted

Let's analyse the issue of forms submitted as part of the VAT-23 declaration on the example of an entrepreneur who conducts transport activities in Poland and provides goods transport services.

With the increasing demand for the services provided and in order to achieve more and more benefits, the owner of such a company will sooner or later consider the possibility of purchasing new means of transport. Entrepreneurs most often decide to buy a means of transport directly in Poland, but buying in the territory of the country is not always the only right option. The company may receive an interesting offer to buy a used car (or other means of transport) from abroad. And sometimes, after analysing all aspects related to such a purchase, it turns out that it is better to choose a contractor from outside Poland. If the supplier of our means of transport operates on the territory of a country belonging to the European Union, we make a decision on the intra-community acquisition of the means.

Remember that in the case of such transactions of purchase of a means of transport, additional formalities must be completed. One of the most important is the obligation to settle tax on goods and services (VAT).

What VAT form do I need when buying a used car?

The intra-community acquisition transaction (regardless of whether the means of transport is new or used) is taxable in the country where the vehicle will be used or registered.

The taxable person is obliged to prepare a VAT-23 declaration and pay the VAT to the relevant tax office within 14 days of the transaction. However, this is not the end. The entrepreneur must remember not only to pay the appropriate amount of tax on time - the provisions of the act also require the submission of appropriate forms (submitted to the tax office) and the provision of documentation regarding the purchase of a given asset (e.g. an invoice). An exception to this rule is a situation in which there are additional premises that release the taxable person from this obligation.

If the taxable person does not register or use the purchased means of transport in Poland, he does not have to complete additional declarations and forms submitted to the tax office. The entrepreneur then shows the purchased means of transport as goods only in the prepared JPK_V7M form.

In the case of intra-community acquisition of an asset, it is not only about the obligation to submit VAT information

Leaving for a moment the problem of the amount of tax due for the purchase of a foreign, used passenger car, we should pay attention to one more important provision. It results from the Road Traffic Act and says that in the case of a vehicle that is not a new means of transport, but a vehicle purchased from the territory of an EU Member State, the owner of this vehicle is obliged to register it within 30 days from the date of the obligation, i.e. from the moment when the means of transport was imported into the territory of Poland.

If we fail to do so, we risk a financial sanction and when registration of the vehicle is required, we will have to prepare an additional declaration and pay the appropriate fee (plus interest if it is after the required payment date).

What should the VAT declaration contain and who is obliged to pay the tax?

Means of transport are purchased by both individuals and entrepreneurs. However, the need to submit a VAT-23 return and pay the tax due to an individual occurs only when the purchased vehicle is sold by a contractor who does not have a VAT-EU number.

Therefore, we already know when it is necessary to prepare a VAT-23 tax return and the obligation to pay - now let's discuss in a few words the information that an entrepreneur needs to prepare forms submitted to the office. In order to correctly fill out VAT-23, we need the following details of the means of transport:

• vehicle make and model;
• VIN number;
• year of manufacture;
• year of admission to use;
• Mileage (in kilometers);
• Purchase price - in accordance with the currency on the invoice documenting the purchase, without conversion into PLN;
• Invoice and purchase date.

The entire form consists of five sections - from the letter A to E. In part A we indicate the tax office, in the next part we fill in the company details. In part C, we put the data listed above and specify the type of vehicle. The section contains the signature of the person submitting the declaration and confirming the accuracy of the data. The last category belongs to a tax office employee.

To sum up, when purchasing a vehicle from the territory of the European Union, the entrepreneur should remember that he is obliged to pay the tax, submit the VAT-23 form and send documentation about the purchased asset to the office. He has 14 days to pay the tax from the date when the obligation arises, i.e. from the moment of purchasing the car.