Reverse shift charge as of July 2015


On July 1, 2015, an amendment to the act on tax on goods and services comes into force, which will introduce changes in the scope of, inter alia, sale of goods to which the so-called reverse charge. The aim of the new regulations is, first of all, the necessity to adjust the national law to the EU regulations.

Reverse charge according to regulations in force until June 30, 2015

Pursuant to the provisions of the VAT Act, taxpayers selling goods listed in Annex 11 to the Act, as a rule, issue invoices without showing the VAT rate. Thus, the settlement obligation is shifted to the service buyer. The seller should also remember to include the annotation “reverse charge” on the invoice issued.

However, there are cases when the buyer receives an invoice documenting the purchase of goods under the reverse charge procedure without appropriate annotation. In this situation, it should be remembered that the record "reverse charge" is only informative. The necessity to use this mechanism results directly from the provisions of the law, the entry on the invoice does not decide that the reverse charge procedure has taken place. In other words, even if the invoice does not contain information that the VAT is settled by the buyer, the recipient of the goods should fulfill the tax obligations, such as charging VAT.


The reverse charge applies to sales, including:

  • wires of copper and its alloys,

  • various types of flat products made of alloy steel,

  • glass waste,

  • recycled metal materials, or

  • plastic waste.

In order for the procedure to be applicable, the conditions referred to in Art. 17 sec. 1 point 7 of the VAT Act, that is:

  • the taxpayer supplying goods does not benefit from the subjective exemption from VAT (i.e. due to the fact that the turnover is not exceeded),

  • the buyer is an active VAT payer,

  • the delivery is not covered by the exemption referred to in Art. 43 sec. 1 point 2 (i.e. the goods will not be used solely for the purposes of the activity exempt from VAT).

Changes in the law - reverse charge for a wider catalog of goods

Under the amendment, the catalog of goods to which the reverse charge is applied has been extended. This applies to the sale of, among others:

  • sheets classified under PKWiU as "Ribbed sheets of non-alloy steel",

  • gold in the form of a raw material or a semi-finished product (with a fineness of 325 thousandths or more) and the supply of investment gold,

  • electronic equipment such as mobile phones (including smartphones), as well as laptops, tablets, notebooks and game consoles - excluding parts and accessories.


As far as the sale of electronic equipment is concerned, the reverse charge will apply as long as the sale is made in bulk quantities. In other words, entrepreneurs who sold equipment worth more than PLN 20,000 in one day. PLN net, I will have to use the reverse charge procedure.

Additionally, when making a sale subject to the reverse charge, entrepreneurs will be required to submit a Summary Information containing collective information on transactions made by the taxpayer.

The Ministry of Finance has prepared a draft of the template of the VAT-27 summary information in domestic trade. The formula should be used in business transactions starting from the settlement for the accounting periods following the second quarter of 2015.

Changes in the law - reverse burden only on active VAT payers

The reverse charge procedure, under the new regulations, will be applied when the buyer of the goods (listed in Annex 11 to the VAT Act) is an active VAT payer. If the buyer of the goods is an entity exempt from VAT, then the seller will have to settle the transaction according to general rules.

Example 1.

Entrepreneur M, who is an active VAT payer, sold gold in the form of raw material to entrepreneur K. However, entrepreneur K. is a taxpayer who benefits from VAT exemption due to not exceeding the turnover limit (PLN 150,000).

In this situation, even if entrepreneur M has sold the goods listed in Annex 11 to the VAT Act, he will not be able to apply the reverse charge procedure. Because its contractor is an entity that is not an active VAT payer. In this situation, entrepreneur M will be obliged to charge VAT.

How to issue an invoice with a reverse charge in the system?

In the case of sale of goods subject to the reverse charge procedure in domestic trade, the invoice should be issued in the tab: REVENUE »SALE» EXHIBITION »EXIST AN INVOICE. Then complete the required fields in the generated window. In the field intended for the VAT rate, select: VAT is settled by the buyer.

The invoice will contain the annotation "reverse charge".