Simplification of import VAT settlements in Poland

International Tax Review is part of Legal Benchmarking Limited, 4 Bouverie Street, London, EC4Y 8AX

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Simplification of import VAT settlements in Poland

Sponsored by

sponsored-firms-mddp.png
adam-fejes-khiwqiwt-ag-unsplash.jpg

Agnieszka Kisielewska of MDDP explains how changes to the VAT law in Poland during 2020 has benefitted businesses and taxpayers.

Cash-free import VAT settlements have become more accessible in Poland due to the changes of the VAT law in force from the beginning of July and October 2020. Although benefiting from this scheme still requires companies to meet several criteria, cash-flow savings resulting from it could be necessary to keep expected profitability of international transactions.

The basic deadline for payment of import VAT in Poland is only 10 days from the date of notification by the customs authority of the amount of customs and tax due, while the taxpayer is able to deduct it while submitting the VAT return. Therefore most importers, in particular importers from the UK to the EU after Brexit, need to involve additional funds to pay the import VAT, which results in negative impact on the importer’s cash-flow.



An alternative to paying import VAT just after the customs clearance is a settlement of import VAT in the VAT return. This solution is available in Poland from July 1 2020 to each VAT payer (registered for VAT) under certain conditions, regardless of the type of customs declaration – using both simplified and standard customs procedures. Before July 1 2020, settlement of import VAT was available only with reference of goods placed under a customs procedure on the basis of a simplified declaration (an incomplete customs declaration or an entry in the declarant's records) or lodged by a holder of the authorised economic operator (AEO) authorisation. Thus, the amendment results with a significant extension of the range of entities able to use this scheme.



Providing respective customs authorities with up-to-date documents confirming the lack of tax and social security arrears, and confirming the VAT registration, remains a condition for the cash-free settlement of import VAT.



Nevertheless, a new condition was introduced, namely every customs clearance to be settled in a VAT return should be lodged by a customs representative, unless the importer is a holder of the AEO authorisation or any of the authorisations for simplified declarations as mentioned above. On the other hand, customs representatives acting on behalf of taxpayers authorised for mentioned customs simplifications or for AEO importers, were relieved from the joint and several liability for the non-settled import VAT.



Moreover, after October 1 2020, the other amendment relaxed the formal conditions of the import VAT simplification. Starting with October 2020, taxpayers should only settle the import VAT in proper amount and in time, but they do not need to confirm the settlement to the customs authorities, as it used to be obligatory to the end of September 2020. The change is one of positive results of introduction of the VAT return in the SAF-T form (JPK_V7M / JPK_V7K), which is obligatory in Poland also from the beginning of October 2020.



Even though since the recent changes of VAT law, all or most of import VAT in Poland should be settled by taxpayers in their VAT returns commonly, the joint and several liability of the customs representative has discouraged many customs agents from providing the service of customs clearance with the VAT deferment. Therefore, importers who are keen to use the import VAT settlement freely, should obtain their own customs authorisations for AEO or to use certain simplifications (the incomplete customs declaration or the entry in the declarant's records).





Agnieszka Kisielewska

Senior manager

E: agnieszka.kisielewska@mddp.pl



more across site & shared bottom lb ros

More from across our site

Amid an ever-changing tax environment, India’s advisory market is bustling with competition ahead of the 2025 World Tax rankings and ITR Awards
The deal comes after PwC had accused Paul McNab of using confidential information; in other news, McDermott hired a new London tax head from a US rival
Looking at transfer pricing simplification is “obviously helpful”, but it should be done in line with current standards, a senior government figure reportedly said
The UK Government’s plans to close the tax gap via increased HM Revenue and Customs investment have failed to impress local tax advisers
Under the merged scheme for R&D tax relief introduced last year, rules on contracted out R&D have changed. James Dudbridge argues for a proactive approach when reviewing companies’ commercial arrangements
Cultural nuances could account for tax advisers’ perceived poor cost management, a local partner told ITR
Updated rules represent a significant shift in the Luxembourg TP landscape and emphasise the need for robust arm’s-length calculations, says Vanessa Ramos Ferrin of TransFair Pricing Solutions
KPMG Law US revolves around contract managed services and the US is the largest market for that, Stuart Bedford tells ITR in an exclusive interview
The US law firm’s tax counsel tells ITR about inspirations from a ‘legendary’ German tax scholar, perfecting riesling wine and what makes tax cool
Wopke Hoekstra also swore the EU would ‘hit back harder’ if faced with a trade war; in other news, a UK watchdog has launched an investigation into an audit completed by MHA
Gift this article