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

JBS, the biggest meat company in the world, allegedly used Luxembourgian ‘mailbox companies’ to avoid taxes between 2019 and 2022
Despite the conviction of Jessa Dabalos, the Tax Practitioners’ Board’s investigative work continues with five outstanding PwC scandal probes
Heads of tax need to push their teams forward as strategic business advisers to add value across their organisations, says Sandy Markwick
Scott Bessent reportedly felt undermined by Musk naming Gary Shapley as acting IRS commissioner; in other news, Baker Tilly will combine with a top 15 US firm
The promise of nine years’ tax certainty and a ‘rational and pragmatic’ government process makes APAs a no-brainer, Indian tax advisers tell ITR
Despite garnering significant revenues from multinationals, Italy’s digital services tax presents pressing double taxation issues, say Stefano Simontacchi and Francesco Saverio Scandone of BonelliErede
ITR’s research shows that in-house tax counsel in Asia also feel underserved by their advisers’ international networks
World Tax global head of research Jon Moore tells ITR how his team spots standout submissions, and gives early statistical insights into this year’s entries
Australia’s conservative opposition will repeal controversial tax agent reporting rules if elected in the country’s May general election
Shapley would be the fourth person to hold the job this year; in other news, UK tax advisory firm MHA raised fewer funds than expected from its London IPO
Gift this article