The company is a middleman established in Switzerland and now has a Polish client that ordered goods that were bought from a Polish contractor. The Polish contractor delivered the goods directly to the Polish client. The Polish contractor sent an invoice with Polish VAT and the Middleman (in the Switzerland) sent an invoice to the final client without VAT using reverse charge mechanism.
- Is it correct that the Polish contractor sent an invoice with Polish VAT ?
- If the VAT was invoiced by the Polish contractor correctly how the Polish VAT (refund) can be requested back? How fast would the Polish VAT be refunded by the Polish tax authorities?
Regarding the described situation as you mentioned the goods did not leave Poland at any moment – they were delivered between two Polish entities (although the invoicing was between the supplier and your Client). Consequently there was no export or intra-Community delivery (no movement between countries) and the PL supplier had to apply 23% i.e. local VAT rate.
The VAT can be claimed through the Polish tax administration according to requirements of Polish law. The application should be filed no later than till the 30th September of the year following the tax year to which the application relates. The tax office issues a decision on the amount of the recognized VAT refund amount within 4 months of receipt of the application.
Read more about our VAT Refund Service https://europe-tax.com/services/vat-agent/
The VAT regulations in Poland regarding the obligation to pay into a bank account disclosed on the whitelist will change. The deadline for submitting ZAW-NR form by taxpayers will be extended from three to seven days. Additionally the number of cases in which payment to an account not placed on the list will be allowed will officially increase.
From January 1, 2020 it was not allowed to include certain expenses in the tax costs if they were paid on the bank account other than this disclosed on the whitelist. This concerns expenses incurred for the purchase of goods or services of a value exceeding PLN 15,000.
Before the amendment, the only way to avoid this sanctions was to inform the tax administration about this by submitting the ZAW-NR notification within three days of the bank transfer.
From July 1, 2020, it was decided to extend the taxpayer’s submission of the ZAW-NR form from three to seven days. The tax office to which ZAW-NR should be submitted has also been changed. It will be the tax office competent for them, and not for the seller.
The number of cases in which the sanction of exclusion from costs will not apply at all will increase. From July 1, 2020 the taxpayers will not be required to exclude expenses from the costs if the payment is made to an account not disclosed on the whitelist, but:
• will be made using the split payment mechanism,
• will relate to invoices documenting IC acquisition, import of goods and services and delivery of goods settled by the buyer.
The amendment will apply to expenses included in costs from January 1, 2020 and regulated from that date. This means that taxpayers who from 1st January to 30th June 2020 settled payments using the split payment mechanism can now correct their settlements, if the payment was made to a bank account outside the whitelist.
Read more about our VAT Agent services https://europe-tax.com/services/vat-agent/