IC supplies, with chain reclassification – Polish tax authorities challenge 0% VAT rate

VAT settlement for intra-Community transactions is challenging due to complex business models, intricate tax regulations, and tight timeframes.
Delays in receiving information from operational departments can prolong the process and lead to delayed reporting.
Improper classification of intra-EU supplies for VAT purposes can have severe consequences, including the loss of the right to apply the 0% VAT rate for ICS.
The tax administration’s restrictive approach has become increasingly apparent, with no retrospective registration for VAT for intra-Community transactions allowed.
Filing EC Sales & Acquisitions List late does not automatically allow for the application of the 0% rate.