What is intra-Community acquisition of means of transport?
What is the new mode of transport? In what situations are we dealing with intra-Community acquisitions of new means of transport? How to properly settle such transactions? We invite you to read the article.
Definition - intra-community acquisition of means of transport
It may seem that the new means of transport is only a car bought at a showroom. This is a misconception - let's give the vote to the legislator:
Art. 2 point 10 of the VAT Act
"New means of transport shall be understood as the means of transport intended for the transport of persons or goods:
(a) land vehicles powered by an engine with a cylinder capacity greater than 48 cubic centimeters or with a power greater than 7.2 kilowatts, if they have traveled no more than 6,000 kilometers or have been put into service for no more than 6 months; the moment of putting a land vehicle into service is the date on which it was first registered for entry into road traffic or on which it was first subject to registration for the purpose of putting into road traffic, whichever date is earlier; If the date of first registration of a land vehicle or the date on which it was subject to first registration cannot be determined, the moment of putting the vehicle into service shall be the date on which it was issued by the manufacturer to the first buyer or the date on which it was first used for demonstration purposes by the manufacturer,
b) vessels with a length of more than 7.5 meters, if they have been used for no more than 100 working hours on the water or no more than 3 months have elapsed since their release for use, with the exception of sea-going vessels referred to in Art. 83 sec. 1 item 1; the moment of putting the watercraft into service is the date on which it was delivered by the manufacturer to the first buyer or the date on which it was first used for demonstration purposes by the manufacturer,
c) aircraft with a maximum take-off mass greater than 1,550 kilograms, if they have been used for no more than 40 working hours or no more than 3 months have elapsed since their entry into service, with the exception of means of air transport referred to in Art. 83 sec. 1 point 6; the moment of release for service of the aircraft shall be the date on which it is issued by the manufacturer to the first buyer or the date on which it is first used for demonstration purposes by the manufacturer. "
Definition of intra-community acquisition
The definition of WNT can be found in Art. 9 sec. 1 and sec. 2 of the Act on tax on goods and services.
"WNT shall be understood as the acquisition of the right to dispose of as owner the goods which, as a result of the delivery, are dispatched or transported in the territory of a Member State other than the territory of the Member State of departure or transport by the person delivering the goods, the buyer of the goods or on their behalf."
The condition for intra-Community acquisition of goods is that the supplier and buyer should be registered as EU VAT taxpayers, i.e. have the so-called European Tax Identification Number preceded by the prefix of a specific country (for Poland - PL).
Intra-Community acquisition of new means of transport and the tax obligation
Art. 20 sec. 9 of the aforementioned Act states that in the case of intra-Community acquisition of means of transport, the tax obligation arises at the time of receipt of these goods - but not later than the moment the relevant invoice is issued by the value added tax payer.
Intra-Community acquisition of new means of transport - settlement
When settling such a transaction, the decisive factor is whether the buyer is exempt from tax or is an active VAT payer. If he is an active taxpayer, then such a transaction should be settled in the VAT-7 or VAT-7K declaration (depending on the frequency of settlements selected). On the other hand, if it is an entity exempt from VAT and the value of intra-Community acquisition of goods is greater than PLN 50 thousand or has decided to tax intra-Community acquisition of goods pursuant to Art. 10 sec. 6 of the VAT Act, then he must send a VAT-8 declaration to the tax office. This document must be submitted on a monthly basis - maximum by the 25th of the month for the previous month.
VAT taxpayers who are exempt and active (settling intra-Community acquisition of goods), if they have made an intra-Community acquisition of a new means of transport, must calculate and transfer the tax to the account of the tax office within 14 days from the moment the tax obligation arises.
Obligations also arise in the context of natural persons who do not run a business and entities exempt from VAT not exceeding PLN 50,000 under the Intra-Community Act and not exercising the rights contained in Art. 10 sec. 6 of the Act. They are required to submit a VAT-10 declaration to the tax office within 14 days from the emergence of the tax obligation. Another requirement is, of course, the calculation and transfer of the tax to the account of the office.
Article 29a of the Value Added Tax Act regulates the issue of determining the tax base (from 2014) for intra-Community acquisitions of new means of transport.
As you can see, settling the discussed transaction is not difficult. This does not mean, of course, that you can forget about important deadlines and the obligation to submit appropriate declarations to the Tax Office - this obligation applies to both entrepreneurs and private persons.