Question:
The company from Netherlands imports goods from Ukraine directly to the business entities in Poland. The company is not registered to the VAT in Poland (PL). How can the company recover the VAT paid in Poland in connection with these import transactions?
Analysis:
The company has two opportunities:
1. registration to the PL VAT
In this situation, the company will pay the VAT amount related to importation of goods based on the custom documents at the time of import. The input VAT amount can be then deducted in the PL VAT reports.
The sale to PL customers by the NL company will be treated as domestic sale and taxed with appropriate Polish VAT rate.
Additionally, if the import has not yet taken place, the company, based on art. 33a PL VAT Act, will be able apply for the deferred import procedure. For this purpose, they should register to the PL VAT and submit the appropriate statements regarding lack of the tax and social security arrears. Then, the output and input VAT amounts related from import will be settled in the PL VAT reports without paying anything. This however is special procedure for which the PL customs agent must agree.
2. registration to the NL VAT
If the company is registered to NL VAT, they will get right to submit the VAT-REF claim with request of reimbursement the paid VAT amount related to the import to PL. The application should be submitted in the NL by electronic system to PL TA. The output VAT will be paid in PL based on the custom documents.
In this situation, the sale to PL customers by NL company can be settled in accordance with art. 17 p.1 p.5 PL VAT Act. Reverse charge mechanism will be applied i.e. the input and output VAT will be settled by the PL customers.
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