How do I post the purchase of goods in the USA?

Service-Tax

Goods import transactions from countries outside the European Union are very popular. Often, the advantage of products from abroad lies in their attractively low price, but not only. There is a group of articles, including specialist equipment, which are missing on the Polish market. See how to post the purchase of US goods in the KPiR and how to post VAT.

How do I post the purchase of goods in the USA in the KPiR?

First of all, in order to post an expense in company costs, it is necessary to have an invoice, bill or purchase contract. This document will be the basis for recognition in the revenue and expense ledger. In the case of import, the received invoice should not include the input VAT and thus its full value related to business activity will be included in the KPiR.

As a rule, the booking of expenses is made on the date of issue of the purchase document.

Art. 22 sec. 6b of the PIT Act:

For the day of incurring the cost of obtaining revenue in the case of taxpayers referred to in paragraph 1. 6 (taxpayers keeping tax books of revenues and expenses - author's note), subject to paragraph 5e, 6ba, 6bb and 7b, it is considered the date of issue of the invoice (bill) or other evidence constituting the basis for the posting (recognition) of the cost.

On the other hand, entrepreneurs running the KPiR should also take into account the provisions resulting from the regulation of the Minister of Finance on keeping a book of revenues and expenses. In par. 17 (1) stipulates that the purchase of basic materials and commercial goods must be entered in the book immediately upon receipt, at the latest prior to storage, processing or sale. In this case, an additional description is prepared, which is the basis for the booking. This provision applies to deliveries of goods that take place before the invoice is issued.

The exception in this respect is entrusting bookkeeping to an accounting office, to which accounting documents are collectively transferred after the end of the month. In such a case, entries are made in chronological order on the basis of the evidence provided, up to the 20th day of each month for the previous month. If the goods are delivered in the same month as the invoice is issued, the expense will be booked in accordance with the date of issue of the purchase document.

When the delivery of goods takes place later than the invoice, which is a common occurrence in the case of import, e.g. from the USA, it is necessary to refer to the general rule. It indicates the posting according to the A / P invoice issue date. This position is confirmed by individual interpretations issued in recent years.

For example, in the interpretation issued on June 4, 2012 by the Director of the Tax Chamber in Łódź (file reference number IPTPB1 / 415-185 / 12-2 / KSU), it was specified:It should be remembered that the day of incurring the tax deductible cost in relation to taxpayers keeping the tax book of revenues and expenses is the day of issuing the proof constituting the basis for recognizing the cost in the books.Therefore, the expenses incurred for the purchase of goods will be tax deductible in the month in which the invoice was issued, and not in the month in which the goods were delivered with the invoice.

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Similar case law was presented in the individual ruling of May 15, 2012, issued by the Director of the Tax Chamber in Katowice (file reference number IBPBI / 1 / 415-190 / 12 / BK) and on December 30, 2011, issued by the Director of the Tax Chamber in Bydgoszcz ( reference number ITPB1 / 415-1005 / 11 / DP).

If a customs duty is charged on import, it is booked on the date of issue of the customs document (SAD or PZC).

Import of goods over the years

The regulations do not explicitly specify how to account for the purchase of goods in the US when the invoice and the delivery occur in two different tax years. Should these goods be included in the physical inventory for December 31st? In accordance with the previously cited interpretation of the Director of the Tax Chamber in Łódź (file reference number IPTPB1 / 415-185 / 12-2 / KSU), the expenditure for the purchase of goods should be included in the tax register in accordance with the invoice issuance date. However, bearing in mind the wording of par. 28 sec. 3 of the Regulation on keeping the KPiR, the physical inventory should also include goods owned by the taxpayer, located on the day of the inventory outside his establishment (i.e. goods in transit).

Example 1.

Company X imported the goods and received an invoice from the supplier issued on December 14, 2015, while the delivery and customs clearance in Poland took place on January 8, 2016 (PZC was issued on this date). How to settle the purchase of goods in the USA and the duty charged? In that case:

  • an invoice documenting the purchase of goods should be entered in the KPiR with the date of the economic event: December 14, 2015 (i.e. the date of issue of the purchase document),

  • goods in transit, which are already owned by the buyer, should be shown in the physical inventory prepared as at 31 December 2015,

  • the duty can be booked as a cost on the date of issue of the PZC customs document, i.e. January 8, 2016.

Exchange rate differences when purchasing in foreign currencies

Usually, purchases of US goods are made in US dollars. Hence, if the payment is also made in a foreign currency, it is necessary to take into account the need to calculate the exchange rate differences. To convert the value from USD to PLN, use:

  • in the case of a purchase invoice - the average NBP exchange rate from the last business day preceding the invoice issue date,

  • in the case of a payment made from a bank account:

    • currency - average exchange rate of the National Bank of Poland from the last business day preceding the day of payment,

    • in PLN, in which the amount due was charged in a foreign currency - the exchange rate actually applied by the bank.

The actual payment amount should be subtracted from the invoice value converted into PLN. If you receive the amount:

  • positive - it will be the income, which is included in column 8 of the KPiR - other income,

  • negative - it means incurring a cost, which is booked in column 13 of the KPiR - other expenses.

How to settle the purchase of goods in the USA in the VAT declaration

The method of accounting for VAT on the import of goods from the USA depends on where the customs clearance is carried out (in Poland or in another EU country, e.g. in Germany) and whether the general rules or the simplified procedure apply.

Check-in in the country - general rules

This is the most common case among entrepreneurs who import goods occasionally. In this case, the VAT is paid immediately upon delivery, usually to an intermediary, e.g. a courier company. The basis for posting VAT is the received SAD or PZC customs document, in which the tax base and the input VAT are indicated. It is worth noting that the tax base is calculated in accordance with customs regulations (Article 31a (3) of the VAT Act), and the duty is also added to it.

Active VAT payers will deduct value added tax on the day they receive the customs document, just like for other domestic expenses. VAT deduction is available on condition that the purchase is related to taxable activity.

Check-in in the country - simplified procedure

Entrepreneurs who regularly import goods may opt for the simplified procedure. This is called deferment of the payment of tax on goods and services, which is made in the VAT return for the period in which the customs declaration was accepted. How to settle the purchase of goods from the USA in this case? The posting itself is not difficult. The transaction is shown on both sides of the declaration:

  • in the field “Import of goods subject to settlement in accordance with Art. 33a of the Act "- here the tax is calculated as on sales,

  • if the entrepreneur is entitled to a VAT deduction, also in the field "Purchase of goods and services classified as fixed assets by the taxpayer" or "Purchase of other goods and services".

In order to be able to use the simplified procedure, it is necessary to meet several conditions, which are indicated in the VAT Act:

  • presenting the head of the customs office, before which the entrepreneur carries out the formalities related to the import of goods, issued not earlier than 6 months before the import of certificates confirming the absence of arrears in social security contributions and in individual taxes,

  • confirmation of registration as an active VAT payer.

Instead of the relevant certificates, it is possible to provide the same declaration of non-arrears in the payment of taxes and social security contributions, which is submitted under pain of criminal liability for submitting false statements. The statement should additionally include a clause saying: "I am aware of criminal liability for making a false statement".

Even before the period in which the entrepreneur wants to start using the simplified procedure, he is obliged to notify the head of the customs office and the head of the tax office about it. Additionally, within 4 months after the month in which the tax obligation for the import of goods arose, a document confirming the VAT settlement should be presented to the customs authority.

Check-in in another EU country

There are also situations where customs clearance takes place in another country of the European Union (it is always performed in the first EU country to which the delivery arrives).

Art. 26a sec. 1 of the VAT Act:

The place of importation of goods is the territory of the Member State where the goods are located at the time of their entry into the territory of the European Union.

In this case, the Polish entrepreneur no longer has to deal with the import of goods, but with the intra-Community acquisition of goods (WNT). It is the foreign fiscal representative who performs the settlement and thus acts as the entity in the intra-community transaction.

A Polish active VAT payer shows such a transaction as VAT both in the VAT-7 declaration and in the VAT-EU summary information (as the contractor's identification number, the VAT-EU number of the fiscal representative should be indicated, preceded by the two-letter code of the country of origin). The tax obligation for the intra-Community acquisition of goods arises on the 15th day of the month following the delivery. In the case of a non-transactional movement of goods, no additional invoice is issued by the fiscal representative. The invoice issued by the US seller does not matter in this case, it is not the basis for VAT settlement.

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Example 2.

A Polish entrepreneur, being an active VAT taxpayer, purchased goods from a US company. On March 28, 2016, he was issued an invoice. The delivery reached Germany, where on April 11, 2016, it was cleared through customs and on April 13, the parcel was delivered to the buyer in Poland. In this case, the tax obligation due to intra-Community acquisition of goods, and thus VAT settlement, will arise on May 15, 2016 (it is the 15th day of the month after the month in which the goods were delivered).

How to book the purchase of goods in the US in the KPiR is regulated by regulations and supported by the jurisprudence of tax authorities, so it should not be difficult. When it comes to settling VAT on the import of goods, one should bear in mind the specific case of whether the clearance takes place in Poland or another EU country, and - if the clearance takes place in our country - whether it is subject to general rules or the simplified procedure.

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