GTU codes in new JPK_VAT7

From October 1, 2020 VAT payers in Poland are required to mark their sales invoices with the new GTU marking, i.e. codes for selected groups of goods and services in the new SAT-T called JPK_VAT7. 

It is not obligatory to indicate the new GTU codes on the sales invoices, however, the taxpayers can decide to do that and it will not be seen as a mistake. 

There are 13 GTU codes which can be divided into the following general groups: 

– supply of alcohol – GTU code 1 
– supply of fuel and oil – GTU code 2 
– supply of heating oil – GTU code 3 
– supply of tobacco products – GTU code 4 
– trade in waste, recyclable materials etc. – GTU code 5 
– supply of electronic devices – GTU code 6 
– sales of vehicles and car parts – GTU code 7 
– sales of precious and base metal products – GTU code 8 
– sales of medicines – GTU code 9 
– supply of buildings and structures – GTU code 10 
– greenhouse gas emission – GTU code 11 
– supply of intangible services, including advisory, accounting, legal, management, training, marketing, head offices, advertising, market research and public opinion research, in the field of research and development works – GTU code 12 
– transport and storage management services – GTU code 13  

The final decision as to whether or not to mark the sold goods or services with the above GTU codes is left to the sellers. They have to decide whether the goods and services they sell should fall into one of the thirteen groups or not. 

What is important if there is at least one item from the “risk group” on the sales invoice, it must be marked with the GTU code. It does not matter that the other goods or services do not fall into this group.  

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Fiscal representative for a company with a fixed establishment in Poland

According to the Polish VAT law provisions a taxpayer not having a registered office or a fixed establishment in the territory of a Member State, subject to the obligation to register as an active VAT taxpayer, is required to appoint a fiscal representative.

This rule applies generally to all non-EU taxpayers and will refer to the UK companies as from 01.01.2021 as well. There are however situations which exclude the obligatory appointment of fiscal representative.

A British company selling goods online from Poland, buys comprehensive warehouse services from a company in Poland. They include: warehouse management, services administration related to the movement of goods, customer service, provision goods of adequate quality and collection of goods in the warehouse, as well as delivery of goods from warehouse (i.e. logistics services). The entire warehouse is dedicated to the needs of this British taxpayer.

Tax office in the official tax ruling stated that to have a fixed establishment it is not necessary for a taxpayer to have its own personnel and technical resources. The taxpayer must, however, be entitled to comparable control over personnel and technical facilities. The tax administration ruled that this British company has therefore a fixed establishment in Poland.

The ruling has numerous consequences for the taxpayer and among them there is one which can be considered definitely as an advantage. Since this taxpayer has a FE in Poland, it is not required to appoint a fiscal representative in Poland as from the 1st January 2021. The same conclusion applies to all non-EU companies so tax analysis regarding the fixed establishment is strongly recommended.

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Tax point for the movement of own goods inside the UE

If the goods are transferred between two UE countries and the owner of the goods is not changed, the transaction is generally VAT neutral, however it must be declared in the VAT reports. Such transaction is considered to be equal to intra-Community delivery in the country where the transport begins and to intra-Community acquisition in the destination country.  The tax point for transaction in which goods are moved from UE country to Poland is determined to be either on the 15th day of the month following the month of delivery or on the date of issuing an invoice for this movement. The second option is applicable just in case when an invoice is created before 15th day of the month following the month of delivery. 

Example : own goods are transferred by a company from the territory of Germany to Poland. German law requires to create a proforma invoice (Proformarechnung) to document the goods have been transferred and this document has to include all data which are typical for an invoice. The main question is if this document can be considered to be an invoice, as it will determine the tax point for this transaction in Poland. Tax law interpretation announced by the tax administration in Poland says that a Polish VAT payer who has to declare movement of his own goods from one UE member state to Poland is obligated to analyze documents which confirm this transfer of goods and determine if it is an invoice within the meaning of the law of the country of shipment – in our example Germany.

This will be necessary for placing the transaction in a right tax period. If the proforma invoice shall be considered an invoice the tax point arises at the day of issuing such document.  If such document cannot be considered to be an invoice the tax point arises at the 15th day of the month following the delivery.

Obligation imposed by the Polish law, forces Polish VAT payers to have the knowledge about foreign law systems in terms of invoice requirements. Without this knowledge it may be difficult to determine the correct tax point for the intra-Community movement of own goods.

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