There have been some changes in the legislation relating to the tax on goods and services (VAT), according to which the requirements for documenting transactions with European counterparties have become more stringent. These changes follow from the provision of Directive (EU) 2018/1912 of 4 December 2018, amending Executive regulation (EC) no 282/2011, which entered into force on 27 December 2018, but the application only came into force on 1 January 2020. The purpose is to unify the rules for documenting intra-community delivery of goods throughout the European Union. The provision of the law introduces so-called Quick Fixes - changes aimed at implementing measures that simplify transactions within the EU, including the right to apply the 0% VAT rate for cross-border transactions made between different EU countries.
Until 01.01.2020, in accordance with the provisions of the VAT law, delivery of goods to a counterparty within the EU could be taxed at the 0% VAT rate, provided that the buyer has a correct and valid VAT number-EU. In addition, rules required the submission of generalized information and the taxpayer's possession of evidence that the goods were exported from Poland and delivered to a European buyer.
After the changes, the entrepreneur must have both a correct and valid EU VAT number and meet at least two conditions from category A and one from category B, for the purpose of taxation of intra-European delivery of goods at the 0% VAT rate.
Category A includes:
- signed CMR consignment note;
- air freight invoice;
- invoice from the carrier of the goods.
Category B includes:
- insurance policy for transportation or Bank documents confirming payment for transportation of goods;
- official document issued by a notary confirming receipt of goods, notarization of receipt of goods abroad;
- acceptance confirmation issued by the entity managing the warehouse in the destination state.
In addition, if the transport is carried out by the buyer, the seller must also have a written statement from the buyer or a third party confirming that the goods were sent or transferred, and indicating the state of destination of the goods.
Thus, in order to confirm the application of the 0% VAT rate, a larger number of documents must be collected than previously confirming the transfer and receipt of goods in another EU country for each of the sales made.