Nievatowiec and the purchase of goods in the EU
Often entrepreneurs who are not active VAT taxpayers carry out EU transactions, including intra-Community acquisitions of goods (WNT). Therefore, the question arises whether such a transaction requires registration for EU VAT? Check how to settle the purchase of goods in the EU by a taxpayer exempt from VAT. You will find the answer in the article below.
VAT exemption - when?
The most common exemption from VAT is the so-called subjective exemption from VAT, i.e. due to not exceeding the annual turnover of PLN 200,000 zloty.
Pursuant to Art. 113 paragraph. 1 of the VAT Act "Zsales made by taxpayers whose sales value did not exceed the total amount of PLN 200,000 in the previous tax year are exempt from tax. The amount of tax is not included in the sales value. " It should be emphasized, however, that the catalog of cases in which such exemption is not granted has been regulated. This applies to entrepreneurs making, inter alia, supply of precious metal products, new means of transport, and legal services. This means that entrepreneurs performing such activities are required to register as active VAT payers (regardless of the turnover limit).
Purchase of goods in the EU by a VAT-exempt taxpayer - consequences
If a non-VAT payer (a taxpayer exempt from being an active taxpayer due to the volume of sales), the value of the intra-Community acquisition in its entirety did not exceed PLN 50,000 in a given tax year, he may not show intra-Community acquisition of goods from another EU country. Pursuant to the regulations, such a buyer may not qualify a given transaction as intra-Community acquisition or may voluntarily report that the transaction of purchasing goods from EU contractors will be treated as intra-Community acquisition.
If the taxpayer exempt from VAT is obliged or voluntarily presents the transaction as intra-Community acquisition of goods, he must pay the VAT resulting from the transaction (according to the national rate). The VAT paid may constitute a business expense.
Non-VAT who purchases goods in the EU - registration for EU VAT
If the buyer who is not an active VAT payer does not exceed the limit of PLN 50,000, PLN, there is no obligation to register for intra-Community transactions. Consequently, it assumes the tax rate applied by the country of the contracting party, appropriate for the given goods.
If a non-VAT owner decides to show intra-Community VAT (or exceeds the limit of PLN 50,000), before making the intra-Community acquisition of goods, he must register as a VAT-EU taxpayer (performing intra-Community transactions) or must submit a written declaration to the head of the tax office on the selection of such settlement or must be used with the VAT-EU number by providing such number of the seller (Article 10 (6) of the VAT Act).
Registration is made on the VAT-R form, by checking box 60 in part C3. Thanks to such registration, the taxpayer will receive an additional country code (eg Poland - PL) before his NIP number, which he will use in intra-community transactions. VAT-EU registration does not cause the taxpayer to lose the current VAT exemption, but only gives him the right to treat transactions related to the purchase of goods from a contractor from an EU country as intra-Community acquisition of goods. Registration is valid until deregistration at the taxpayer's request.
If the taxpayer uses the intra-Community acquisition of goods, he will be obliged to tax the acquisition of goods at the rate applicable in his country. At the same time, the paid VAT may be tax-deductible.
An entrepreneur benefiting from a VAT exemption in the country, in a situation where he plans to purchase goods from a taxpayer from an EU country, must prove intra-Community acquisition of goods in the case of:
- exceeding the transaction limit (in the amount of PLN 50 thousand),
- when the limit has not been exceeded, but the buyer used the European tax identification number (with the prefix PL) - i.e. the invoice will not include VAT.
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How to book a WNT transaction with nievatowiec in the wfirma.pl system?
In order to post an intra-Community acquisition of goods in a non-VAT transaction, go to the tab: EXPENDITURE »ACCOUNTING» ADD »EXPENDITURE. In the ADVANCED sub-tab, select the WNT option and select the currency. In the NET VALUE field, enter the value from the purchase invoice, and as the VAT rate, select the appropriate Polish VAT rate for the given type of goods (usually 23%).
After the end of the month, the VAT-8 declaration should be sent to the office by the 25th day of the following month, which should be generated through the tab: START »TAXES» VAT TAX »ADD DECLARATION» VAT DECLARATION 8. Then, in the window that will appear, select the period to which the declaration is to relate and choose the purpose of submission: SUBMITTING THE DECLARATION.
Additionally, the information summarizing VAT-EU should be submitted to the office, which is generated through the tab: START »TAXES» VAT TAX »ADD A DECLARATION» VAT-EU INFORMATION.