Delivery of goods at the time of its release?

Service-Tax

The moment of delivery of goods or performance of the service is - in accordance with the changes in force from the beginning of this year - key to determining the moment of the tax obligation under VAT. Previously, either the date of issue of the goods or the issue of the invoice - if it had to be drawn up - counted. According to the current regulations, everything depends on the provisions in the contract between the seller and the buyer. It follows that in some cases the tax obligation arises when the goods are delivered, in others when they are delivered.

Tax liability arising in VAT in 2014 - general rule

The amended VAT Act no longer contains Article 19, which contained a provision specifying the moment when a tax obligation arises. The new regulations were included in Article 19a added by the legislator. His mouth. 1 says that now the tax obligation arises when the goods are delivered or the service is performed. It is worth noting that this is clearly a departure from being overly attached to the invoice - there is no longer a link between the emergence of a tax obligation and the issuing of an invoice, even when it is necessary.

Important!

The invoice issue date is the 15th day of the month following the month of delivery of the goods or service or receipt of the advance payment.

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This is a general rule. There are many exceptions to it - e.g. full or partial payment (advance payment, advance payment, etc.) prior to delivery or service provision. In this situation, the tax obligation arises at the time of its receipt. It should also be added that issuing an invoice is still crucial for certain types of services - e.g. for the media.

supply of goods

So, from the beginning of this year, the date of delivery is crucial for the emergence of a tax obligation - let's take a closer look at this concept. Article 7 (2) 1 of the Act on tax on goods and services says that this is the date of transferring the right to dispose of the goods as an owner. This usually takes place when the goods are handed over to the buyer.

The concept of delivery of goods was discussed in the judgment of the Supreme Administrative Court of September 14, 2010 (file reference number I FSK 1389/09), which concluded that the phrase "disposing of goods as owner" should be understood broadly.

In the individual ruling of December 5, 2013 (file reference number IPPP1 / 443-1035 / 13-2 / MP), the Director of the Tax Chamber in Warsaw noted that the delivery of goods by the supplier is related to "A significant effect of the sale of goods, consisting, inter alia, in on the transfer to the recipient of the benefits and burdens associated with the goods and the risk of accidental loss or damage. The decisive moment for the transfer of benefits and burdens related to the goods to the recipient and the risk of accidental loss or damage to the goods is, as a rule, the release of the goods. The delivery referred to in Art. 19a paragraph. 1 of the act, therefore, means that the delivery has actually been completed. If the parties have marked a time other than the release of the goods for the transfer of benefits and burdens, then in case of doubt it is assumed that the same moment applies to the transfer of the risk of accidental loss or damage to the goods. "

The director also referred to Article 353¹ of the Civil Code, which states that the parties to the contract may arrange the legal relationship according to their needs - but its content or purpose may not contradict the nature of the relationship, the law and the principles of social coexistence. According to the Director of IS in Warsaw, "the above rule implies that the parties may freely shape the content of the contract within the limits set by applicable law, including tax law".

To sum up, it should be concluded that the delivery can take place either when the goods are actually delivered to the buyer, or when they are handed over to the customer or carrier in the seller's warehouse - everything depends on when the benefits and burdens related to the given goods are transferred to the buyer. thing. The detailed provisions in the concluded contract are decisive here. If the general provisions are that:

  • the supplier is obliged to deliver (at his own expense) the given goods to the buyer, then the time when the tax obligation arises will be the date when the delivery is actually made;

  • the supplier prepares the goods and the buyer takes care of the collection and transport, then the tax obligation arises when the goods are handed over to the buyer or forwarder.

The moment of delivery - documentation

An important thing in the matter of the tax obligation in the tax on goods and services from the beginning of this year is the obligation to document the delivered delivery - also when it takes place at the time of delivery of the goods.

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This necessity was not included directly in the act, and yet the taxpayer should be able to justify why a tax obligation for a given supply occurred in a specific period. There is now some discretion in this matter. It is difficult to say which documents will be recognized by the tax authorities as appropriate proofs of the delivery. It is worth knowing that regardless of their form, they must be stored for the next 5 tax years.