Registration and submission of EU VAT information

Service-Tax

Before making an intra-Community transaction, the entrepreneur should register for EU VAT. After registration, in transactions with contractors from the European Union, he uses the EU VAT number with the prefix of his country. Additionally, for some transactions, there is an obligation to submit EU VAT information.

Who is required to have an EU VAT number and when should it be used?

Entrepreneurs making transactions involving foreign entities from countries belonging to the European Union should pay special attention to the nature of the settlements. The nature of the transaction affects the form of the settlement, especially in respect of VAT. Entrepreneurs often forget about additional obligations related to EU transactions in which entities from the Community countries participate. One of the basic obligations of taxpayers participating in intra-Community transactions is registration in EU VAT. So who and when is required to register?

Active VAT payers

An entrepreneur who is an active VAT payer is obliged to register before making the first transaction related to:

  • with WNT, i.e. the purchase of goods from an EU contractor (applies to the purchase of goods from companies; does not apply to purchases from natural persons who do not conduct business but reside in EU countries);
  • with the purchase of services for which the place of performance is the buyer's seat, which means that the buyer is obliged to settle VAT on the purchase of a given service;
  • with intra-Community supplies, i.e. with the sale of goods by active VAT payers who deliver goods to contractors from the European Union; it is extremely important that both the seller and the buyer are registered and that they have export receipts; This is because intra-Community supply of goods is associated with sales taxed at a 0% rate;
  • with the provision of services to foreign contractors from the EU, where the place of provision of services is determined at the place of business / residence by the buyer.

Subject

Active VAT payer

Nature of the transaction

Purchase transactions from EU countries

Type of transaction

WNT - Community Acquisition of Goods

Purchase of services to which Art. 28b

Registration obligation

YES

YES

Remarks

Purchase of goods from companies from the European Union;

Note: the lack of VAT-EU registration does not exempt from the obligation to settle intra-Community acquisition of goods

The exceptions to the general rules concern, inter alia, construction, transport and brokerage services;

All of them are listed in the VAT Act, Art. 28e, f, g, i, j, n

Subject

Active VAT payer

Nature of the transaction

Sales transactions to EU countries

Type of transaction

WDT - Community delivery of goods

Provision of services to which Art. 28b

Provision of services for which Art. 28b

Registration obligation

YES

YES

NOPE

Remarks

One should remember about meeting the conditions of WDT, among others confirmation of export, confirmation that the buyer has active EU-VAT

It does not apply to the provision of services to natural persons not operating from EU countries

Exceptions to the general rules regarding the determination of the place of provision of services are included in the VAT Act, Art. 28c-n

Taxpayers benefiting from VAT exemption

On the other hand, the obligation to register for intra-Community purposes does not only apply to active VAT payers. Entrepreneurs who are not active VAT taxpayers (i.e. benefiting from a subject exemption from VAT due to the turnover limit of up to PLN 200,000) participating in intra-Community transactions are also required to register in VAT-EU when they make:

  • WNT - purchase of goods when their purchased value in a given year exceeded PLN 50,000; which does not mean that entrepreneurs who have not exceeded the limit cannot voluntarily register for VAT-EU purposes;
  • purchase of services for which the place of performance is the buyer's country - which requires them to register VAT-EU, but above all to tax the purchased services despite the fact that they are exempt from VAT in the country;
  • intra-Community supply of services for which the obligation to tax the transaction rests with the buyer pursuant to Article 28b, which states that the place of supply of a given service is, in a given case, the country of the buyer.

If the trader exempt from VAT sells goods to contractors from Community countries, he is not required to register for VAT-EU purposes.

Subject

Taxpayer benefiting from VAT exemption

Nature of the transaction

Purchase transactions from EU countries

Type of transaction

Acquisition of goods

Purchase of services to which Art. 28b

Registration obligation

YES *

 

* If the value of purchased goods in a given year exceeds PLN 50,000; before the limit is exceeded, there is no obligation of registration and taxation by the buyer

YES

Declarations

VAT-8,

VAT-EU

VAT-9M

Remarks

In accordance with the regulations, the buyer is obliged to settle and pay VAT

Pursuant to the regulations (place of performance, art. 28b), the buyer is obliged to settle and pay VAT; Exceptions to the general rules regarding the determination of the place of provision of services are included in the VAT Act, Art. 28c-n

Subject

Taxpayer benefiting from VAT exemption

Nature of the transaction

Sales transactions to EU countries

Type of transaction

Sale of goods

Provision of services to which Art. 28b

Provision of services for which Art. 28b

Registration obligation

NOPE

YES

NOPE

Declarations

-

VAT-EU

-

Remarks

-

-

Exceptions to the general rules regarding the determination of the place of provision of services are included in the VAT Act, Art. 28c-n e.g. for construction services

When there is an obligation to submit VAT-UE

An entrepreneur who registers for VAT-EU purposes is required to submit a declaration for the period in which the intra-Community acquisition of goods or intra-Community supply of goods or services for contractors from the EU for which the principle of art. 28b. There are three separate parts on the declaration for each of the three types of transaction. The entrepreneur is obliged to show in the summary information the value of the sum of transactions from a given period for a given counterparty, additionally providing only the NIP-EU identification number of a given counterparty.

For which transactions there is no obligation to submit VAT-EU

Not all intra-Community transactions are required to be included in the VAT-EU declaration.One of the types of transactions with the participation of entities from the European Union countries, which are not included in the summary information, is the import of services. Despite the purchase of services from EU countries, the entrepreneur is not obliged to show the value of the purchased services in the EU VAT declaration.

Also, in the case of the provision of services or the sale of goods to natural persons who do not conduct business from EU countries, the entrepreneur will not show the VAT-EU declaration in the declaration. These transactions will be treated in the same way as domestic transactions.

The entrepreneur will not show on the VAT-EU declaration the provision of services to the EU contractor, for which Art. 28b of the VAT Act. The provisions of the act state that the obligation to show aggregate information applies to entrepreneurs providing services to which Art. 28b.

Start a free 30-day trial period with no strings attached!

Automatic deregistration from VAT-EU

Since the submission of the declaration involves the occurrence of a transaction - tax obligation - there is no obligation to submit a declaration, the so-called zero as it is in the case of the JPK_V7 file, which should be submitted even if no VAT-related activity has been performed in a given month.

Here, however, it should be borne in mind that the office has the option of deregistering a taxpayer from VAT-EU if the taxpayer for 3 consecutive months or a quarter in the JPK_V7 file did not show the sale or purchase of goods or services with tax amounts to be deducted. Such a situation may also take place if the entrepreneur has not submitted VAT-EU summary information for the period of 3 consecutive months, despite the existence of such an obligation.

Monthly or quarterly submit a VAT-EU declaration?

The entrepreneur submits the VAT-EU declaration on a monthly basis and only monthly. It is not possible to submit VAT-EU declarations on a quarterly basis. Additionally, one should remember about the form of submitting the declaration, because electronic shipping is obligatory. Therefore, it is not possible to submit VAT-EU information in a paper version.

EU-VAT declaration and suspension of business activity

Entrepreneurs who have decided to suspend their business activities are not required to submit EU VAT declarations if, of course, they do not make intra-Community transactions during the suspension. There is also no automatic deregistration during the suspension of activities. The provisions referring to it do not apply to the period in which the activity is reported as suspended.

Why is the VAT-EU summary information submitted?

VAT-UE summary information is not used to show and pay amounts due to tax offices. They serve more statistical and information purposes. However, the validity of the EU-VAT return should not be downgraded in this respect. Failure to comply with the obligation to register for VAT-EU purposes or failure to submit a declaration is subject to fiscal sanctions.

From October 2020, the JPK_V7 file was implemented, which replaced the previously submitted VAT and JPK_VAT declarations with one structure. It is still necessary to submit EU VAT information. More information in the article: JPK V7M and JPK V7K, i.e. the monthly obligation to submit a JPK file instead of a VAT declaration.

Deadline for submitting EU VAT information

Periodic VAT-EU declarations must be submitted by the 25th month following the one in which they occurred. However, it should be remembered that the electronic sending of EU VAT declarations is possible:

  • without the need for an electronic signature (shipping authorization is based on the amount of income from the annual PIT declaration submitted two years back) - in the case of sole proprietorships,
  • only with the use of an electronic signature - in the case of companies (civil law, general partnership or limited liability company).

More information on EU VAT in the articles:
- Import of services from a non-EU contractor registered to VAT-EU - settlement
- Registration for VAT and EU VAT - everything you need to know!

What does VAT-UE registration give?

Registration for VAT-EU purposes not only imposes an obligation on the entrepreneur to report intra-Community transactions in the VAT-EU declaration. The consequence of the notification is also the receipt of the so-called NIP-UE number. It consists in adding a prefix to the NIP number used by the entrepreneur that identifies the country from which the entrepreneur comes from. In the case of a Polish taxpayer, it will be the prefix PL. In this way, entrepreneurs registered for intra-community transactions are identified. However, since not every entity is aware that the use of the prefix is ​​possible only after registration for VAT-EU purposes, the entrepreneur should always additionally check his contractors. This is possible thanks to the European Commission's VIES online platform, which allows you to verify the activity of the EU VAT number. The confirmation can be printed and attached to the documents relating to the intra-community transaction. It will be an unquestionable confirmation that in the month of making a given transaction, the parties had an active EU VAT number, i.e. as at the date of a given event, they were registered for intra-community transactions. This, in turn, will confirm the legitimacy of taxing the event.

Registration for VAT-EU purposes is extremely important in transactions such as intra-Community supply or intra-Community acquisition. Thanks to the EU VAT numbers, the entrepreneur can identify the buyer of the goods as an active taxpayer, which is the basic requirement for the application of a specific VAT rate. If the buyer did not have a NIP-EU number, the seller would tax the transaction at the rate applicable to the seller's country. For the buyer, this would mean a greater cost.

For active VAT payers who carry out intra-Community transactions, registration for VAT-EU purposes is in most cases unavoidable. In addition, it should be noted that failure to register for intra-Community purposes does not release the entrepreneur from the obligation to tax intra-Community transactions related to the purchase of services or goods for which the buyer is obliged to settle the tax.