0% rate for intra-community delivery of goods

The revised regulations of VAT Act present four circumstances that all have to occur so that the taxpayer can apply 0% rate for intra-community delivery of goods:

1. The delivery has been made to the benefit of the buyer that handed over their contractor the right and valid transaction identification number of intra-community transactions issued by the member state.
2. Before the deadline for submitting tax statement for a given billing period, the supplier possesses confirmations in their documentation that the goods that are subject to intra-community delivery of goods have been transported outside the country’s territory and have been delivered to the buyer located in a territory of a different member state.
3. The supplier, by submitting their VAT declaration in which they list that delivery of goods, is registered as a EU VAT ID taxpayer.
4. The supplier submitted the correct summary information EU VAT ID within the deadline.

It should be pointed out that the revision of Polish VAT Act doesn’t plan changes in the catalogue of documents that are required to confirm the intra-community delivery.

The proofs that confirm the export of goods according to VAT Act can be the following:

  • the shipping documents received from the carrier (forwarder) responsible for transporting the goods away from the country’s territory – documents that confirm that the good have been delivered to their destination on a territory of a different member state,
    specification of particular items of the cargo,
  • business correspondence with the seller, including their order,
  • documents concerning the insurance or freight costs,
  • proofs of paying for the good,
  • receipts that confirm accepting the good by the buyer within the area of a member state outside the country territory.

The seller has the option to present the documents enumerated in the executive ordinance of the Council (EU) 2018/1912). In such a case it’s based on a presumption that the good was driven outside the country’s territory. The good should contain:

two documents connected with the transport:

  • a signed CMR freight bill,
  • bill of landing (nautical freight bill)
  • the invoice for air transfer of goods or the invoice from the good carrier,

or one document connected with the transport and one document of other type:

  • insurance policy associated with the transport,
  • official documents that confirm the arrival of goods in the destination state,
  • acknowledgement of receipt done by the entity in charge of the warehouse that received the goods,

The documents should be issued by two independent parties and can’t contradict each other.

Please note! The taxpayer can choose between application of proof listed in Council Ordinance (EU) 2018/1912 and proof enumerated in VAT Act.