We participate in chain transactions as a second party. How should we deal with deliveries if goods are dispatched directly from the manufacturer in Germany to Poland and transport is organised by our company (intermediary party) or another Polish company which is the final buyer ?
1. Goods are dispatched or transported by the second party- Polish company B.
In this case the transaction between the German taxpayer A and the Polish taxpayer B will be treated as supply of goods with transport “moved supply”
The place of taxation for this transaction will be Germany, meaning the place where the transport of goods begins. Taking into consideration the fact that both taxpayers are registered for intracommunity transactions and goods are transported from Germany to Poland, the transaction will be considered as an intracommunity supply for the German supplier and as an intracommunity acquisition for the Polish buyer (intermediary party).
The delivery between Polish taxpayers B and C, regarded as an “unmoved supply” due to the fact it occurs after the goods are dispatched, will be taxed in the place where the transport ends meaning Poland. It does not matter who bears the transport costs, what is important is who dispatches or transports the goods ( or outsources the transport, so simply organises it).
2. Goods are dispatched or transported by the last party- Polish company C.
In this case transaction between two Polish companies: B and C will be treated as “moved supply” . According to art.22.1.pt.1 of the Polish VAT Act the delivery of these goods will be taxable at the place where dispatch or the transport of the goods begins, so in Germany.
Therefore, the Polish company B will be obliged to settle this transaction as an intracommunity supply in Germany while the Polish company C will be obliged to settle this transactions as an intracommunity acquisition in Poland.
Due to the fact that the delivery between German taxpayer A and the Polish taxpayer B precedes the dispatch it should be treated as an “unmoved supply” and should be taxed at the place where the dispatch or transport begins (art.22.3.pt.1) so in Germany but as a local transaction.