Case Study: Swiss Company Buying in Poland and Supplying to Italy — Do You Need Polish VAT Registration?
Executive Summary
Yes. The Swiss company must register for VAT in Poland and (if it has no EU establishment) appoint a Fiscal Representative. The company will record Polish purchases (input VAT recoverable) and the ICS to Italy in the Polish VAT return (JPK_V7M/V7K). To apply 0% VAT on the ICS, both parties must hold valid EU VAT numbers and the Swiss company must hold transport evidence and submit EC Sales List.
Business scenario
Current setup: A Swiss company purchases goods from Polish suppliers and ships them directly from Poland to an Italian company with a valid EU VAT number. This is a two‑leg chain with a cross‑border transport from Poland to Italy.
Polish VAT outcome: The Swiss company is the supplier making an intra‑Community supply (ICS) from Poland. As the place of supply is Poland, it must register for VAT in Poland and clear the transaction there. Input VAT on Polish purchases can be deducted in the Polish VAT return, provided the general deductibility rules are met.
Fiscal Representative for non‑EU companies
Non‑EU taxpayers that must be registered in Poland are generally required to appoint a Fiscal Representative. The representative must be Polish‑established and is jointly and severally liable with the non‑EU taxpayer for Polish VAT. This is a practical prerequisite for registration unless the Swiss company already has an EU establishment.
Tax representative liability & due diligence: Choose a reputable firm, expect KYC checks, and be prepared for security/deposit clauses reflecting the joint and several liability risk.
Fixed Establishment vs. VAT registration
Having a fixed establishment (FE) in the EU would remove the obligation to appoint a fiscal representative, but it is not necessary to have an FE to be obliged to register. In this scenario, registration is triggered by making an ICS from Poland. Assess FE carefully (human and technical resources with sufficient permanence) but do not conflate FE analysis with the separate question of VAT registration.
Reporting: SAF‑T (JPK) and monthly VAT return (JPK_V7M)
Poland uses SAF‑T known locally as JPK. Most foreign‑owned traders file JPK_V7M monthly (or JPK_V7K quarterly). The file combines VAT records and the VAT return. Expect electronic filing via the Polish e‑tax systems and keep invoice data in the required logical structure.
EC Sales List & VIES: In addition to JPK, the ICS must be reported in the EC Sales List; the customer’s VAT‑UE number must be valid in VIES on the dispatch date.
Polish VAT White List (Biała lista) and due diligence
When paying Polish suppliers, verify their bank accounts on the Biała lista. Payments for domestic invoices above statutory thresholds to non‑listed accounts can trigger joint liability for the supplier’s VAT. Build vendor‑onboarding procedures (VIES check, White List check, written confirmations) into your due diligence file.
Intrastat thresholds in Poland
Cross‑border dispatches from Poland to other Member States may create Intrastat reporting in Poland once the dispatch value exceeds the annual statistical threshold. Monitor values of your shipments from day one and register timely if you cross the dispatch (exports) threshold.
VAT rates in Poland and split payment
The standard VAT rate is 23%. Although ICS is normally 0% if conditions are met, your domestic purchases from Polish suppliers will often carry 23% VAT which you may deduct. For certain sensitive goods/services and payments, Poland applies a mandatory split payment mechanism (mechanizm podzielonej płatności). Your A/P should be able to initiate split payments when legally required or when the supplier requests it.
Chain transactions, triangulation simplification & reverse charge
With the Swiss company buying in Poland and shipping to Italy, this is a chain transaction with a single cross‑border movement. The Swiss supplier records an ICS in Poland; the Italian buyer records an intra‑Community acquisition in Italy.
Triangulation simplification generally requires three taxable persons identified in three different EU Member States. If the Swiss company is registered to VAT in other than Poland and Italy country simplification is available.
Reverse charge mechanism: Domestic reverse charge is largely replaced by split payment in Poland; however, reverse charge continues to apply in specific cross‑border service scenarios. It does not typically replace the ICS/ICA model for this goods flow.
Practical steps, documents, and timelines
- Obtain NIP and register on VAT‑R (active VAT and VAT‑UE status). The VAT‑UE status enables ICS/ICA reporting and VIES validation.
- Appoint Fiscal Representative (if no EU establishment) – sign a power of attorney (pełnomocnictwo) and provide AML/KYC documentation; some reps may request a financial security due to joint and several liability.
- Prepare corporate documents (extract from the commercial register, articles) with certified translations into Polish where required by the tax office.
- Configure EORI (for any future customs interactions) and align customs clearance if you plan imports into Poland before onward ICS.
- Set up electronic filing for JPK_V7M/V7K, EC Sales List (VAT‑UE summary), and Intrastat (if applicable). Ensure roles and deadlines are clear (who reviews, who signs, backup signatory).
- Implement transport evidence procedures (CMR, carrier confirmations, POD) and keep a unified ICS file linking purchase invoice, sales invoice, contracts, and logistics proofs.
- Build AP controls for White List checks, split‑payment capability, and vendor onboarding due diligence.
Timelines: Registration decisions can vary by office; plan several weeks for the full setup (including Fiscal Rep onboarding), and align first filing period accordingly.
ICS 0% documentation checklist
To apply 0% VAT on the ICS to Italy, keep:
- Valid VAT‑UE number of the Italian customer (VIES screenshot on dispatch date).
- Proof of transport from Poland to Italy (e.g., CMR signed by consignee, carrier tracking, forwarder statement, delivery note, insurance documents).
- Sales invoice with buyer’s VAT‑UE, seller’s PL VAT number, and reference to intra‑Community supply.
- Contract/Order confirming terms (Incoterms helpful to identify who arranges transport).
- ESL submission for the period (matching values and buyer’s VAT‑UE).
- Reconciliations: ICS values tie to JPK_V7 and ESL; discrepancies explained.
Failure to maintain this pack risks reclassification to domestic supply and loss of the 0% rate.
VAT refund procedure (timelines & controls)
Input VAT incurred on Polish purchases (e.g., 23% standard rate) is recoverable via the VAT return if purchases are linked to taxable activities (the ICS). Expect:
- Refund timelines: standard statutory periods with possible desk audit (call for explanations) before release.
- Risk‑based checks: correctness of registration, JPK consistency, White List compliance and payment trails.
- Best practice: maintain a VAT refund dossier: supplier invoices, payment confirmations (including split‑payment use where applicable), proof of receipt of goods in Poland, and linkage to the onward ICS.
Import of goods into Poland & customs/EORI
If goods are imported into Poland (from Switzerland or third countries) before the ICS, align:
- EORI number and representation at customs.
- Consider customs procedures (release to free circulation) and the VAT treatment on import; evaluate simplifications (e.g., deferred accounting if available through a customs broker) to mitigate cash‑flow.
- Make sure the import documents reference the Polish VAT number used for subsequent ICS and that stock movement records bridge import → ICS.
SAF‑T/JPK data & technical tips
- Structure & mapping: ensure ERP tax codes map to JPK_V7M tags; mis‑tagging causes rejects or audit questions.
- Consistency checks: JPK, ESL, and Intrastat should reconcile (quantities/values) for the same flows.
- Digital archive: store JPK XML files, acknowledgements (UPO), and VIES/White List screenshots for at least the statutory retention period.
Penalties for non‑compliance
Late or missing VAT registration, JPK errors, White List breaches, or failure to apply mandatory split payment may lead to financial penalties, refusal of 0% ICS, interest on arrears, or delays/denials of VAT refunds. In severe cases, authorities may assess domestic VAT on the supply and question the right to deduct input VAT. Robust evidence and timely corrections significantly reduce exposure.
Common pitfalls & internal controls
- Using the wrong VAT numbers (missing VAT‑UE status) → no 0% ICS.
- Incomplete transport evidence → elevated audit risk.
- Omitting ESL/Intrastat or misaligning with JPK → inconsistency flags.
- Paying to unlisted bank accounts without protective measures → joint liability exposure.
- Assuming triangulation applies with a non‑EU trader → simplification does not apply; treat as standard ICS/ICA.
Controls: month‑end checklists, VIES/White List automation, three‑way match (PO–GRN–Invoice), and periodic sample audits.
FAQ
Do we always need a Fiscal Representative?
Yes, for non‑EU businesses without an EU establishment. With an EU FE, the fiscal rep is typically not required, but registration in Poland may still be necessary due to the ICS.
Can we file quarterly?
Some taxpayers can use JPK_V7K, but monthly (JPK_V7M) is common for foreign traders; assess eligibility and cash‑flow effects.
Is reverse charge available instead of ICS?
No. ICS/ICA is the correct model for goods physically moving Poland → Italy; domestic reverse charge does not displace ICS.
How do we prove 0% ICS if the buyer collects goods (EXW)?
Collect buyer’s transport statements, CMRs, and alternative proofs; ensure documentation clearly shows dispatch from Poland to another Member State.
References
Late or missing VAT registration, JPK errors, White List breaches, or failure to apply mandatory split payment may lead to financial penalties, refusal of 0% ICS, or temporary blocking of excess VAT refunds. Maintain robust controls and retain evidence for audits.
References (selection)
- Polish VAT Act (Ustawa o VAT: fiscal representative, ICS documentation, rates).
https://isap.sejm.gov.pl/isap.nsf/download.xsp/WDU20040540535/U/D20040535Lj.pdf
- Ministry of Finance / KAS: JPK_V7 guidance and structures; White List tool.
https://podatki-arch.mf.gov.pl/wykaz-podatnikow-vat-wyszukiwarka
- Statistics Poland (GUS): annual Intrastat thresholds.
- EU VAT Directive (Art. 138–142): ICS conditions and triangulation simplification.
https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=celex:32006L0112