- Correct Position on VAT Assessment: The assessment of tax consequences regarding intra-Community triangular supply is confirmed to be correct, specifically regarding the Value Added Tax (VAT) implications.
- Joint Application for Ruling: The ruling request, submitted on July 26, 2023, involves two parties: A. S.p.A., an Italian company, and B. Sp. z o.o., a Polish company, both part of the same international capital group.
- Business Context: A. is not registered as an active VAT taxpayer in Poland but is in Italy, while B. is registered in Poland and engaged in distributing goods, specifically to Polish customers.
- Sales Transaction Model: The goods are manufactured by a group entity in Germany, Romania, or the UK, sold to A., and then resold to B., who sells to the end customer in Poland, with direct transport from the manufacturer to the customer.
- Simplified Procedure for Triangular Transactions: The transaction between the Producer, A., and B. is treated as a triangular transaction under the simplified procedure in accordance with the VAT Act and the VAT Directive.
- VAT Responsibilities: B. is responsible for reporting the intra-Community acquisition of goods in Poland, while A. correctly applies the simplified procedure for the transaction.
- Conditions for Simplified Procedure: The simplified procedure allows the last taxpayer in a chain transaction to settle VAT based on conditions outlined in Article 135(1)(4) of the VAT Act.
- Transport Organization: The manufacturer organizes the transport, and A. bears the risk of loss or damage during transport, which is crucial for determining VAT liability and reporting responsibilities.
- Right to Deduct Input Tax: If the simplified procedure is not applicable, B. still retains the right to deduct input tax from domestic acquisitions from A., as there is a direct link between the purchases and taxable sales.
- Legal Basis and Rights: The ruling is based on the Polish Tax Ordinance and EU law principles, with the ruling providing protective legal functions for the applicant, who can appeal if necessary, and emphasizing the importance of compliance with EU VAT regulations.
Source Eureka.mf.gov.pl
