- A recent tax ruling (0112-KDIL1-3.4012.673.2024.2.KK) clarifies the complexities of DDP (Delivered Duty Paid) Incoterms, emphasizing that the seller bears full responsibility for delivering goods, including customs duties and taxes.
- The legal status of the importer varies based on who submits the customs declaration: if submitted by the seller or their agent, the seller is liable for duties and taxes with no input VAT deduction for the buyer; if submitted by the buyer, they become liable and can deduct input VAT if the goods are for taxable activities.
- It is crucial to confirm who submits the customs declaration and ensure clear allocation of tax responsibilities in Incoterms agreements to avoid misunderstandings and optimize VAT recovery.
Source Piotr Chojnacki
