Since changes in VAT law have been accepted by Polish Parliament, please find below the most important changes concerning the reverse charge mechanism that will probably enter into force as of 1 January 2017.
As a general rule, if a foreign company registered for VAT purposes in Poland supplies goods to an entity established in Poland, it should charge Polish VAT, unless an obligatory reverse charge mechanism applies.
The precise list of commodities subject to the obligatory reverse charge mechanism is included in an appendix to the Polish VAT Act. From 2017 the reverse charge mechanism should be also applied with respect to:
a) ex 188.8.131.52 – electronic integrated circuits – only processors (CPUs);
b) 184.108.40.206 – silver, unwrought or in semi-manufactured forms, or in powder form;
c) ex 220.127.116.11 – gold, unwrought or in semi-manufactured forms, or in powder form, with the exception of investment gold;
d) 18.104.22.168 – platinum, unwrought or in semi-manufactured forms, or in powder form;
e) ex 22.214.171.124 – base metals or silver, clad with gold, maximally wrought to a semi-manufactured form – only gold plated silver, maximally wrought to a semi-manufactured form;
f) ex 126.96.36.199 – base metals clad with silver, platinum plated base metals, silver or gold, silver maximally wrought to a semi-manufactured form – only platinum plated silver and gold, maximally wrought to a semi-manufactured form;
g) ex 188.8.131.52 – other non-ferrous metals and products thereof; cermets; ash and residues containing metals and metal compounds – only waste and scrap of base metals.
h) ex 184.108.40.206 – Jewellery and ist parts, as well as other jewellery articles and their parts, made of gold and silver or plated with a precious metal – exclusively parts of jewellery and other jewellery articles made of gold, silver or plated i.e. non-finished or non-complete jewellery articles and explicit jewellery parts, including ones covered or plated with a precious metal.
Please be aware, that as of 1 January 2017, domestic reverse charge is applied with respect to construction services rendered by subcontractors (classified into codes from 41.00.30.0 to 220.127.116.11)
It should be underlined that the supplies of electronic integrated circuits (CPU’s) is subject to the reverse charge mechanism providing that the total value of these goods as part of a transaction – which is uniform in economic terms and covers such goods – exceeds the amount of PLN 20.000 net of VAT. Please bear in mind that according to Polish law a “transaction uniform in economic terms” is a transaction that includes one agreement (contract) under which there is one or more deliveries of goods, even if they are carried out on the basis of separate orders or greater number of invoices documenting individual deliveries are issued.
For further information please contact Marcin Chomiuk, Partner Indirect Tax Poland under +482 274 647 60 or firstname.lastname@example.org.
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