Re-invoicing in VAT is not a separate activity therefore the tax liability (the tax point) that shall arise upon the resale of the service is the moment of its performance. Polish Supreme Administrative Court recently upheld the cassation appeal of the tax authorities in the case regarding the re-invoicing, that is the resale of the services. NSA decided that the tax point is not the moment of issuing of the re-invoice, but the tax liability shall rise upon the performance of the original services.
The provision of Article 8 paragraph 2 of the Polish VAT Act implements the Article 28 of the 112th Directive. The article states: “Where a taxable person acting in his own name but on behalf of another person takes part in a supply of services, he shall be deemed to have received and supplied those services himself”.
The transfer of the expenses for the definitive acquirer occurs through issuing of the re-invoice. In fact, it is an invoicing of the service performed by a third party, for example an another company. NSA noted however that sometimes the tax liability shall rise at the moment of issuing the re-invoice for example when the VAT Act binds it to issuing of an invoice.