An invoice from Facebook, Google – what should be noted?
Many entrepreneurs who run their businesses often use services, applications or advertising of contractors from abroad to promote themselves on, for example Facebook, Google or LinkedIn. It is worth mentioning that such a purchase is also associated with tax consequences.
According to Article 28b of the VAT Act, a service purchased from an entity registered in another EU country is considered nothing more than an import of services.
If my company is exempt from VAT, does this concern me in any way?
Whenever you buy an advertisement for Facebook or Google, you are required to register as a VAT-EU taxpayer – no matter whether you are an active or exempt VAT payer. Registration is required in order to complete intra-community transactions.
After completing the VAT-R form, the appropriate tax office will assign you a ‘European’ NIP for the aforementioned transactions and you will have to use the NIP with the ‘PL’ prefix. IN order to check your status, as well as that of other entrepreneurs, please check here.
What if the tax amount is not indicated on the invoice?
If you are a VAT-exempt taxpayer, you are required to calculate your domestic VAT adequately to VAT for the same service provided in Poland. The tax should be stated in VAT-9M return by the 25th day of the month following the purchase of the service. Furthermore, you should pay the tax to tax office in the same period of time.
A VAT-registered company is also required to account for VAT, but in such a situation where VAT is a chargeable tax, while the same amount is deductible. In the situation when the entrepreneur is registered for VAT, the tax is neutral, so there is no requirement to pay the tax office. On the other hand, however, despite the transaction being tax neutral, it is must be still included in the JPK_V7 settlement.
Withholding tax – does it apply to a transaction?
All transactions with Facebook, Google or LinkedIn are also considered as a withholding tax.
Advertising services purchased from foreign suppliers may be subject to income tax in Poland. However, you may avoid paying the said tax if you obtain a tax residency certificate from the company from which you bought the advertisement. Such certificate needs to be requested directly from the company that provided you with the service.
Do you have any questions? Contact our specialist who will be happy to answer you:
Tel: 71 793 72 82
Tel. 501 805 807
Tel. 501 701 707
– Art. 97 of the act of 11.03.2004 regarding tax on goods and services (Journal of Laws of 2021, item 685 as amended),
– Art. 29 par. 1 point 5 of the Act of 26.07.1991 regarding income tax from natural persons (Journal of Laws of 2020, item 1426 as amended),
– Art. 21 par. 1 point 2a of the Act of 15 February 1992 regarding corporate income tax (Journal of Laws of 2020, item 1406 as amended).
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