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Can this transaction be considered as allowed and according to Polish VAT rules?

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Our company (NL) sells small electronic devices and a customer in Poland buys these product from us. After receiving the purchase order from the polish customer we ship the goods to a warehouse in Poland. Our customer can check out the goods at this warehouse, and after making a decision to purchase the goods, the customer makes a payment to us. After we have received the payment we will instruct the warehouse to deliver the goods to our customer. Please advise if this is allowed according to Polish VAT rules.

 

As you know the regulations concerning call off stock are not subject of the unification under EU Directive. Therefore we encounter a situation where the regulations on call off stock in each Member States are significantly different.

 

According to Polish VAT act the main conditions to use the simplification of the call off stock are as follows:

 

– The call off stock (in Poland called the Consignment stock) must be conducted by the Customer,

– Supplier (your company) cannot be registered in Poland for VAT,

– The goods provided to the stock may be used only for production or services (so if the goods may be subject of sales you cannot use this simplification).

Taking into consideration the description provided and Polish regulation on call off stock, in our opinion this shipment cannot be treated as a call off stock transaction.

 

More over in this situation we got not one but two following transactions:

– Your company transfer its own goods from NL to PL which is subject of Polish VAT and therefore NL company is obliged to register for Polish VAT, submit VAT returns and EC Sales Lists,

– Polish domestic sales to your company’s Polish customer – in this transaction your company may apply reverse charge mechanism.