What are the rules of reverse charge mechanism?

Poland adopted the new VAT rules as of 1 April 2011. These rules also include a reverse charge mechanism for domestics sales by foreign suppliers non established in Poland to businesses established in Poland. Can you please confirm if this is indeed the case and provide us more information on the consequences for a foreign supplier ? E.g. do they have to print a specific text on the invoices, can they recover input VAT quicker, etc.

According to art. 17 of Polish VAT act par.1 point.5 recipients buying goods from suppliers non established/not having place of business activity  in Poland will be responsible for accounting output VAT. It means in case of local sale this foreign supplier will not charge VAT. The invoices should be issued without any VAT rate and with no VAT amount in this case – the recipients will account for VAT. On the invoices you should put information „Reverse charge – odwrotne obciążenie – Art. 17 ust.2 ustawy o VAT”. Please note however in Poland model similar to the Netherlands has been applied so this reverse charge mechanism applies only to domestic sales by a non-resident business to a company that is established in Poland. In case of recipients not established in Poland (with just a Polish VAT registration) this rule is not applicable. Input VAT will not be recovered quicker – standard term is 60 days.