Intra-Community delivery of goods - when does it not happen?

Service-Tax

In today's commerce, transactions take many forms and circumstances. Many companies sell goods to contractors from the European Union and are well aware of the rules governing the intra-Community supply of goods, hereinafter referred to as WDT, as well as the conditions that must be met to be able to apply the 0% VAT rate to the goods sold. Not always, however, intra-Community supply of goods will occur in the above-mentioned transactions.

The intra-community delivery of goods does not apply to every delivery within the EU

It is worth noting that there are a number of exceptions contained in Art. 13 sec. 1 point 3 of the VAT Act, in which the deliveries of goods in the territory of the European Union will not constitute intra-Community supplies. They will take place when:

  1. the goods are installed or assembled, with or without a trial run, for which the place of delivery is the territory of a Member State other than Poland, if the goods will be moved by the Polish taxpayer who delivers them or on his behalf,

  2. the goods are moved through mail order sales from Poland,

  3. goods will be moved on board ships, airplanes or trains in the course of passenger transport on the territory of the European Union,

  4. there will be an export of goods,

  5. the movement of goods takes place only through a given country or countries, which are not the country of destination for the transported goods,

  6. the goods will be transported to an EU country other than Poland in order to perform a valuation or other work (e.g. a guarantee), after which they will be sent back to Poland,

  7. the goods are temporarily used in the territory of a Member State other than the territory of Poland, for the provision of services by a taxpayer established in Poland, who has moved or to whom these goods have been transferred,

  8. goods are temporarily used by a Polish taxpayer in the territory of a Member State other than Poland, but not longer than 24 months, provided that the import of such goods from the territory of a third country, due to their temporary import, would be exempt from customs duty,

  9. gas in the gas system, electricity in the power system, heat or cooling energy through heat or cooling energy distribution networks are subject to displacement.

Examples of deliveries not constituting an intra-Community supply of goods

Example 1.

Mr. Ryszard, who sells drilling machines, delivered such a machine together with its installation at a Czech contractor. The place of sale is the Czech Republic, therefore the transaction in question does not constitute an intra-Community supply of goods.

Individual interpretation of 07/05/2014. Director of the Tax Chamber in Warsaw, ref. No. IPPP3 / 443-117 / 14-2 / ​​LK

Example 2.

Mr. Zbigniew runs a business involving the production of footwear. One of the specialized equipment for sewing leather has failed. Mr. Zbigniew sent this machine to a qualified service center in France for warranty repair. After repair, the apparatus was transported to the headquarters of Mr. Zbigniew's company. Again, there is no intra-Community supply of goods in this situation.

Individual interpretation of June 18, 2014. Director of the Tax Chamber in Poznań, ref. No. ILPP4 / 443-138 / 14-5 / EWW.

Example 3.

Mr. Krzysztof selling sports accessories sent sports gloves to a private person from France, who is not a taxpayer. In such a case, there will be no intra-Community supply of goods.

Individual interpretation of 01/10/2015. Director of the Tax Chamber in Bydgoszcz, ref. No. ITPP3 / 4512-334 / 15 / AT.

Example 4.

A Polish company based in Germany sold its goods to Ukraine. The goods will be shipped across the Polish border. Nevertheless, it will not constitute an intra-Community supply of goods, as it is the subject of the export of goods.

Individual interpretation of 03/10/2014. Director of the Tax Chamber in Katowice, ref. No. IBPP4 / 443-293 / 14 / LG.

Example 5.

The Polish company sold apples to France. The goods were exported and transferred to another truck on the territory of Germany, and then left to a contractor in France. The intra-Community supply of goods will not be the transport of goods from Poland to Germany and from Germany to France.

Individual interpretation of August 30, 2013. Director of the Tax Chamber in Katowice, ref. No. IBPP4 / 443-271 / 13 / PK.