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Importation of goods into Poland entails complex obligations to pay tax. Businesses importing goods can use the support of our tax advisors to improve their cash flow dynamics and minimise the risk of errors.
How to declare and account for VAT on importation of goods?
The responsibility for accounting for VAT on importation of goods lies with the importer (i.e. the entity encumbered with customs debt), who, as a general rule, is obliged to pay VAT on importation.
VAT is paid in the country into which the goods are imported, and the importer is obliged to pay due tax within the time limit and under the terms specified for customs duties also if the imported goods are exempt from customs duties or customs rates have been suspended or reduced to zero.
After the general terms and conditions for VAT deduction are met, the amount of VAT paid on the importation can be declared as input VAT, making the tax paid on the importation neutral.
What is the simplified procedure and why is it beneficial for VAT on importation?
The simplified procedure for importation of goods allows taxable persons to postpone the payment of VAT until the transaction is declared in the VAT return. The return is submitted on or before the 25th day of the month following the month in which the obligation to pay tax (customs debt) arises.
In practice, this means that taxable persons using this mechanism can account for VAT on importation of goods directly in the VAT return and do not have to pay it to the customs office at the moment of importation. Owing to this, businesses can avoid freezing of their funds and – on the assumption that they enjoy a full right to deduct VAT – maintain complete neutrality of the import transaction.
Which terms of the VAT Act must be met to use the simplified procedure?
The simplified procedure is not adopted automatically as a standard mode of operation and can be used only on an application of a taxable person who meets relevant statutory terms.
To take advantage of this procedure in Poland, the importer must apply to the head of the customs and tax office and enclose necessary statements or declarations. Among important conditions that need fulfilled are lack of any overdue public debt or appointment of a direct or indirect agent within the meaning of customs regulations.
Importantly, the application to adopt the simplified procedure is subject to periodic renewals. Therefore, it is not a mechanism which can be used by taxable persons indefinitely.
Consult RSM Poland's experts
With practical experience in tax advisory on accounting for goods import transactions and adopting the simplified procedure, RSM Poland's tax advisors can offer comprehensive support in all relevant operations, from determining whether it is possible to use the simplified procedure, to applying for the simplified procedure, to full support in the proper fulfilment of tax-related obligations as part of the VAT compliance service.
Our support in VAT on importation of goods into Poland covers:
- Analysis of the importer's activities – we verify if your company meets the formal requirements for adopting the simplified procedure.
- Preparation and filing of the application to adopt the simplified procedure – if possible, we collect relevant documents and apply to the head of the customs and tax office on your behalf, to ensure that you can take advantage of the simplifications as soon as possible.
- Additional support and renewal of necessary permissions – we keep track of the expiry dates of permissions and provide additional support by means of ad-hoc consultations and comprehensive VAT compliance services, to minimise fiscal risks and guarantee that transactions are properly declared in VAT returns.
As a part of one of the largest networks of audit, consulting, and tax advisory firms, we communicate effectively in English and German and have rich practical experience in advisory on import transactions and complex VAT matters, guaranteeing the highest standard of our services. Contact us to find out how we can assist you!
