VAT warehousing may constitute a significant simplification of VAT collection and settlement, particularly for entities operating in the area of international trade of goods. This procedure provides for the application of the 0% VAT rate for goods entering a VAT warehouse.
Scope and conditions of applying the 0% rate
Supply of goods and intra-Community acquisition of goods subject to the VAT warehousing procedure shall be subject to taxation at the rate of 0% VAT. The supply of goods subject to VAT storage procedure shall be subject to taxation at the 0% VAT rate if all of the following conditions are jointly met:
- the taxpayer has issued an invoice documenting the supply using the National e-Invoice System (KSEF)
- the legal basis of the 0% rate applied has been indicated on the invoice (supply of goods subject to the VAT warehousing covered by the VAT warehousing procedure)
- the goods have been entered into the VAT warehouse
- the taxpayer received from the purchaser a document confirming that the goods have been subject to the VAT warehousing procedure, before the expiry of the deadline for submission of the tax return for a given settlement period
The provision of services in a VAT warehouse, directly related to the stored goods, e.g. sorting, reloading, packaging, maintenance of goods in proper condition or temperature, conservation of goods, and other services shall also be subject to taxation at the 0% VAT rate.
"VAT warehouse" shall mean a customs warehouse as referred to in Article 242(1) of the Union Customs Code (Type I customs warehouse) - excluding excise goods (excise goods will not be subject to the VAT warehouse procedure), operated by a "VAT warehouse operator" who has been granted a VAT warehouse license. I. VAT warehouse records.
Use of the VAT warehouse procedure
A registered VAT taxable person who has been active for at least 12 months will be entitled to use the VAT warehouse procedure, once he has been granted authority to use the procedure.
Placing goods under the VAT warehousing procedure
Goods declared for the VAT warehousing procedure and entered into the procedure will be deemed to be covered by the procedure.
Goods supplied at the retail stage and goods consumed (including those intended for consumption) in a VAT warehouse may not be placed under the VAT warehouse procedure.
The goods shall be declared for the VAT warehouse procedure by the taxable person authorized to use the procedure.
Termination of the VAT warehousing procedure
The VAT warehouse procedure shall be terminated when the taxable person declares the termination of the procedure and the goods are removed from the VAT warehouse.
The VAT warehouse procedure shall also be terminated:
- when the supply of goods covered by the VAT warehouse procedure is completed within the VAT warehouse
- upon the exit (removal) of goods from the VAT warehouse without filing the legally required declaration
- upon the withdrawal of the VAT warehouse license in which the goods are located
- with the withdrawal of the VAT warehouse procedure authorization.
Settlement of VAT upon terminating the VAT warehouse procedure
The notification of terminating the VAT warehouse procedure triggers the obligation to pay the VAT due on the goods previously subject to the procedure. The person who causes the goods to cease to be subject to the VAT warehousing procedure will be liable to pay the VAT. In principle, this will be the taxable person - the owner of the goods - who declares the termination of the VAT warehousing procedure and removes the goods from the VAT warehouse.
The VAT due on the termination of the VAT warehousing procedure will be calculated in the declaration (return) on the termination procedure and paid directly to the tax authority at the time of terminating the procedure.
The VAT paid on the termination of the VAT warehousing procedure will, in principle, constitute input tax for the taxpayer and will be deductible in the JPK_VAT with the declaration.
Alternatively, the termination of the VAT warehousing procedure will be able to be fully accounted for in the JPK_VAT with the declaration (output and input tax). In this case, the removal of goods from the warehouse will require the provision of security for the payment of VAT.
The VAT taxable base in the event of terminating the VAT warehousing procedure shall be the value of the taxable base of the supply of goods or intra-Community acquisition of goods to which the 0% tax rate was applied when the goods were placed under the VAT warehousing procedure. The taxable base will be increased by the value of any services provided in a VAT warehouse, subject to a 0% rate.
The final solution will be presented by the Ministry of Finance at a further stage of work on the amendments.