POLAND: Change in the the simplified scheme for import VAT as of 1 May 2019

The cash-free import VAT settlement, as a result of the simplified procedure, will be limited from 1 May 2019. The end of April 2019 is the limit date for the reassessment of permits to use the simplified procedure. The need for their re-verification resulted from the introduction of the EU Customs Code (UCC) instead of the previously applicable Community Customs Code (CCC).

How does the import simplification function in Poland?

In principle, the taxpayer who imports goods must submit a customs declaration, pay customs duties and VAT, the corresponding payment needs to be done within 10 days. Then the VAT declaration is submitted, where the taxpayer is entitled to deduct the import VAT.

However, many taxpayers use the simplified procedure allowed by art. 33a of the Polish VAT Act. It consists in the fact that no VAT is paid after the import and is not shown in the customs declaration, but only in the VAT declaration – as a result, a cash-free import VAT settlement is granted to the taxpayer.

What new changes mean for your company?

After 1 May 2019, the cash-free import VAT settlements (VAT declaration) will only be possible if (I refer to the art. 33a of Polish VAT Act):

  • the company will have its own customs simplification permit or will be an AEO* (in this case, the import can be carried out by a customs agent acting as a direct representative); or
  • the company will perform customs clearance based on the authorization issued to the customs agency and using special procedures (such as: inward processing and passive processing, temporary admission, end-use, bonded warehouse).

*Please note that obtaining an AEO status lasts at least half a year and obtaining a permit for a simplified procedure may take from 4 to 6 months.

The import of goods under the simplified procedure is, apart from the advantage in VAT, a huge logistics simplification, especially for manufacturing and trade enterprises, so it is worth to ensure that continuity of applying these facilitations by companies should be considered. It is necessary to ensure cooperation with a customs agency that has the appropriate permits and agrees to act as an intermediate representative or to obtain authorization for simplified procedures by the company itself or to request an AEO. In practice, this may mean the need to change the model of cooperation with customs agencies and concluded agreements.

For the Companies using the cash-free VAT settlements procedure (Art 33a of the Polish VAT Act), resignation from the simplification may mean the necessity of resigning from benefits granted by the scheme.

In case of any questions, please contact:

Kinga Zawora
Office: +41 58 792 2262 | Mobile: +41 79 339 9895
Email: kinga.x.zawora@ch.pwc.com


Image source: unsplash.com

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