According to art. 83 p.1.10a, of the Polish VAT Act 0% rate can be applied to deliveries of goods used directly the supply of ships used for sailing on the high seas and carrying passengers for remuneration or used for commercial, industrial or fishing purposes.
Another article in Polish VAT Act 83.1.3 allows to use 0% to supplies of parts for the floating units/ships and equipment for these units, if they are built into them or are used to their operation.
These can be e.g.
- seagoing passenger liners, seagoing cruise ships and similar vessels for the transport of persons; seagoing ferries of all types (PKWiU ex 30.11.21.0),
- seagoing tankers for the transport of crude oil, petroleum products, chemicals and liquefied gases (PKWiU ex 30.11.22.0),
- seagoing refrigerated vessels, excluding tankers (PKWiU ex 30.11.23.0),
- other seagoing vessels for the transport of dry (solid) cargo, excluding seagoing barges without propulsion (PKWiU ex 30.11.24.0),
- seagoing fishing vessels, seagoing processing vessels and other seagoing floating vessels for the processing or preservation of fishery products (PKWiU ex 30.11.31.0),
- seagoing pushers and seagoing tugs (PKWiU ex 30.11.32.0),
- seagoing icebreakers (PKWiU ex 30.11.33.0).
Supreme Administrative Court NSA in Poland ruled that: in order to benefit from the 0% tax rate, deliveries of parts and equipment for vessels should be made to the entity that will ultimately use them, which consequently means that they should take place at the last stage of the chain of sales of these goods.
In other words according to the Supreme Administrative Court’s judgment, the 0% tax rate applies to the supplies for these units, if the delivery is made directly to the entity that will directly use these goods. Therefore, it is irrelevant if the goods will be delivered directly to the ship. 0 % VAT rate cannot be applied to deliveries to the intermediary.
If a company sells goods used directly the supply of ships used for sailing on the high seas and carrying passengers for remuneration or used for commercial, industrial or fishing purposes – to final entity/ship owner and had relevant documentation, it would be entitled to use 0% for these deliveries.
Only the last delivery in chain may be 0% VAT rated.
As for documentation to the 0% VAT rate for these deliveries the Polish VAT law says only the activities referred to in art. 1, points 7-18 and 20-22 are subject to taxation at a 0% tax rate if the taxpayer keeps documentation that clearly shows that these activities were performed in compliance with the conditions specified in this provision.
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