Customs procedure 42 and new marking in the file JPK_V7 examples, part AND

Service-Tax

Purchase transactions subject to specific customs procedures require taxpayers to approach some elements of the transaction in a schematic way. The new customs procedure 42 and its marking in the JPK_V7 file - this issue will be discussed in the article. There are many requirements that companies must meet to be able to use any customs procedure.

From October 1, some customs procedures, and more specifically some of them, are to be obligatorily indicated in the new JPK_V7 file. What are these procedures? What exactly are they based on? When and in what cases should they be included in the new JPK_V7 file, and when not? This and many other issues are addressed in this publication.

Customs procedure 42 - a word about importing goods

Import of goods in the light of the VAT Act means the import of goods from the territory of one of the countries outside the European Union into its territory. Commodities will instead be things and parts of them, and all forms of energy.

Taxpayers obliged to settle VAT on importation may be importers, but also tax representatives.

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.

If, upon the introduction of goods from a third country into the territory of the EU, they will be subject to one of the following procedures:

  1. inward processing;

  2. temporary admission with total relief from import duty;

  3. customs warehousing;

  4. transit, including temporary storage, before placing the goods under one of the customs procedures;

  5. free zone

- the place of importation of such goods is the territory of the Member State where the goods will cease to be subject to these procedures.

Settlement of the import of goods in the light of the VAT Act may take the form of a general rule or a simplified method.

The general method of settling VAT in the import of goods does not require the inclusion in the VAT register of the VAT paid (within 10 days from the date of receipt of the request) of the VAT due on the imported goods, but allows it to be deducted and shown in the VAT register (assuming that the imported goods will be intended for taxable sales, not exempt).

The simplified method of VAT settlement in the import of goods requires that the import of goods be included in the VAT register:

  1. in the VAT sales register,

  2. in the VAT purchase register (with the possibility of VAT deduction for further designation of goods for taxable sale).

The obligation to tax the import of goods will occur:

  1. in the month the customs debt is incurred (clearance by the customs office);

  2. upon discharge of the processing procedure in the event that the goods are placed under the inward processing procedure;

  3. when the following fees arise when the goods are placed under the procedure: customs warehousing, temporary admission with full relief from import duties, inward processing, transit, free zone, if these goods are subject to levies or similar charges.

Example 1.

Polish limited liability company being an active VAT taxpayer and conducting business activity in the territory of Poland, imported parts for agricultural machinery from Russia. Customs clearance was carried out in Poland according to the general rules of import settlement. The parts will be sold in Poland, sometimes abroad.

In this configuration, the so-called procedure 42, so the Polish company does not mark this type of sale after import with the signs "I_42". Of course, there may be a situation where the invoiced sale transaction of the imported goods will be required by the taxpayer with other mandatory symbols ("GTU, FP, MPP" or other, depending on the type of goods sold and the type of sale procedure used).

Example 2.

A Polish civil law partnership that is an active VAT taxpayer and conducting business activity in the territory of Poland, imported construction accessories from Russia. Customs clearance was carried out in Poland according to the simplified rules of import settlement. The parts will be sold later in Poland and abroad.

In this configuration, the so-calledprocedure 42, so the Polish company does not mark this type of sale after import with the signs "I_42". Of course, there may be a situation where the invoiced sale transaction of the imported goods will be required by the taxpayer with other mandatory symbols ("GTU, FP, MPP" or other, depending on the type of goods sold and the type of sale procedure used). Certainly, the input VAT on the import of the above-mentioned goods will have to be marked as "IMP".

So what is the procedure marked in the new JPK_V7 as "I_42"?

What is customs procedure 42?

Import of goods, and therefore the purchase of goods from a country outside the EU, may end with the clearance of the goods in Poland. However, if the goods were to be immediately resold to an entity from another EU country than Poland, then instead of carrying out the standard customs clearance procedure in Poland, the taxpayer has the option to clear through the customs procedure 42.

The marking of the customs procedure with the number 42 initiated that importers are required to complete the code in box 37 (SAD document) with the beginning of the number 42.

Customs Procedure 42 is a procedure where goods are imported from a third country (non-EU) into one of the EU Member States and then shipped to another EU country.

The advantage of this method is that the VAT due for payment will arise only at the very end, i.e. in the EU country to which the goods will ultimately go (the actual final recipient of these goods) for sale.

Procedure 42 should distinguish between the entities involved in the overall transaction. Taking into account the Polish taxpayer in the chain of transactions carried out using procedure 42, these will be:

  1. importer, i.e. an entity from one of the EU Member States (EU country of destination for imported goods);

  2. supplier (seller) of goods from one of the countries outside the EU;

  3. a Polish taxpayer running a business in the territory of the Republic of Poland (Poland as the country of import), who performs intra-Community supplies of goods to the importer (fiscal representative of the importer);

  4. fiscal representative performing customs clearance on behalf of the importer.

Customs procedure 42 - the course of the transaction with its application

How is the sale transaction carried out using customs procedure 42? It will be presented on an example:

  1. a contractor from Germany orders goods from a Polish seller;

  2. a contractor from Germany signs an agreement with a customs agency to settle customs formalities in Poland;

  3. they are both active VAT and VAT-EU taxpayers;

  4. the Polish taxpayer does not have the goods in stock and orders them from Russia;

  5. the goods are imported from Russia to the port in Gdańsk - the import of the goods is recognized;

  6. Customs procedure 42 is marked on the customs documents;

  7. the goods at this point can:

  • be immediately transported to the recipient from Germany,

  • go to the Polish taxpayer, and then be transported to the recipient from Germany (everything depends on the arrangements between the Polish and German contractor);

  1. the Polish taxpayer recognizes WDT, and the German contractor recognizes WNT.

Who, in what capacity, will appear in customs procedure 42, depends on who will import goods and intra-Community supplies, what issues will be entrusted to the customs agency (fiscal representatives) and whether at all, and what to the Polish taxpayer. In this example it depends on the arrangements between the Polish and German contractor.

The essence of the customs procedure lies in the fact that the destination of the goods imported from a non-EU country in advance is not their sale in the EU country of importation, but intra-Community delivery to the EU country of destination. This is the most important feature of customs procedure 42, so when the taxpayer or fiscal representative in the SAD indicates the code of customs procedure 42, then the customs authorities immediately know what type of transaction they are dealing with. Therefore, according to the SAD declaration, it requires further transport of the imported goods to an EU country other than the EU country of importation. This part is WDT and exactly this part requires the Polish taxpayer to make a marking in the new JPK_V7 file.

All this means that the Polish taxpayer will not always be required to mark the transaction in which he participated under customs procedure 42 with the symbol "I_42" in the new JPK_V7 file.

It is extremely important to understand the essence of the functioning of the customs procedure 42 in order to correctly understand who and in what situations is obliged to mark the transaction carried out through this procedure. About this and many other useful aspects in the second part of the publication.