A call-of stock procedure in Poland

According to the project dated 11 June 2019 amending the VAT Act, a call-of stock procedure will be introduced in Poland as from January 2020. Following Directive 2018/1910  call-of-stock refers to the situation where, at the time of transport/dispatch of goods to another Member State, the supplier already knows the identity of the taxpayer purchasing the goods to whom they will be provided at a later stage and after arrival in the Member State of destination.

Currently in the countries that did not introduce such a type of storage procedure in their provisions, such delivery is considered as intra-Community supply in the Member State of departure of the goods and consequently purchase as intra-Community acquisition in the Member State of arrival of the goods followed by a local supply in the arrival country. This now leads to obligatory VAT registration of the supplier in the Member State of arrival. Thanks to the introduction of a uniform call-of stock procedure within the European Union, such transactions will be under certain conditions regarded as causing on the supplier side exempt/0% VAT rate intra-Community delivery in the Member State of departure and intra-Community acquisition on the buyer side taxed in the country of the arrival.

Currently the Polish VAT Act includes specific regulations for a consignment stock, which to some extent meets the conditions for being considered a call-of stock warehouse.

Directive 2018/1910 introduces however provisions which are different from the current ones e.g. consequences of not collecting goods for 12 months, possibility to use the procedure to goods intended for commercial operations, therefore it is necessary to make changes in the Polish VAT Act.