Import of goods to Poland from and outside the European Union - tax settlements and legal formalities

When commencing foreign trade, you need to remember a few practical rules. For example, it will check the credibility of the selected counterparty, secure the transaction (inter alia by means of a letter of credit, i.e. a written obligation of the bank to pay a specified amount to the indicated person and within a specified time based on the documents provided), writing a clear, transparent contract whose content leaves no room for appearance. differences in interpretation and familiarization with the provisions of international law. Applying these tips can effectively secure our business and finances. Assistance in foreign trade matters can be found in institutions such as Foreign Trade Offices or the Polish Chamber of Commerce. What, however, do foreign trade issues look like on the legal side and formalities both within the European Union and outside it?

Import of goods from the European Union to Poland

The flow of goods within the Community, which is the EU, regulates the same rules for all Member States, which definitely facilitates trade and communication between them. At the time when Poland joined the European Union, notions such as “export” and “import” ceased to apply to it. In their place, the Community acquisition of goods (WNT) appeared, that is, buying and importing them from another EU Member State, taking place as part of business operations. We should also remember that WNT takes place when VAT taxpayers or value added taxpayers participate in the transaction, and the purchased goods are to serve the buyer’s business. It is also mandatory to register for VAT-EU needs, which is necessary for anyone who wants to carry out WNT. You should then submit the relevant documents to the tax office. If the contractor has already registered for VAT purposes, he must only report the update in the VAT-R form. How do you settle the import of goods from the EU? A transaction within the Community acquisitions of goods may require payment of the VAT or excise already mentioned. Taxation is calculated in the buyer’s country, in the place where he is resident or in the head office. The tax obligation arises not later than on the fifteenth day of the next month following the month of the transaction or, if the invoice was issued before that date, it appears along with this invoice. What is the basis for taxation? The answer is simple – the amount to be paid by the buyer. However, it should be remembered that depending on the situation, additional charges may appear here, such as duty. The amount should be included in the customs declaration. The tax amount must be paid within ten days of the tax authority’s notification by the customs authority (Article 33 paragraph 1 and paragraph 4 of the VAT Act). It must be remembered that WNT is not covered by banknotes, currency, coins (Article 45 paragraph 8 VAT Act), goods that will be put into service, for example, missions or diplomatic representations (Article 80 of the VAT Act) and parts of maritime and air transport (Article 83 paragraph 1 item 1,3,6,10,18 of the Act about VAT).

Import of goods from outside the European Union to Poland

Products imported from outside Europe are very popular in our country, and their country of origin is often China. We meet the words “Made in China” on them, and more Chinese stores are appearing in extremely fast pace. Imports of goods from outside the EU are governed by different laws than the previously described WNT. How to properly settle import of goods from China to Poland? Above all, you should also remember about VAT tax. It is imposed on the products transported during customs clearance. The tax should be paid in Poland, if customs duties have been paid for here and goods have been released for free circulation in the EU. The customs declaration should indicate customs duty and VAT. It is possible to settle VAT in import VAT-7 and VAT-7K declaration – as payable and accrued at the same time, which eliminates the necessity of its payment and releases working capital. Such a declaration is made by entrepreneurs who settle monthly with the tax office. You must also remember the necessary documents, such as a purchase invoice from a Chinese contractor, issued in English and a SAD or PZC form (if we have an electronic version) that confirms the import of goods. there is also the exchange rate. This problem does not apply to EU countries that use the euro, but in other cases, use the exchange rate, which was published on the penultimate Wednesday of each month. It is valid for one month starting from the first day of the following month. This is the rule that was put into effect on May 1, 2016. In the case of China, the most-used currency is the US dollar. Perhaps during such a transaction we will need a credit card – it is worth checking it out. A tax debt arises for the import of goods from outside the EU member states at the time of submission to one of the customs procedures: admission or temporary admission and arises at the time of acceptance of the customs declaration. These rules apply not only to China, but also to countries that are located in Europe but they are not members of the European Union – for example, Ukraine. When conducting foreign trade, both in the case of the European Union and countries that do not belong to it, first of all remember to thoroughly familiarize yourself with international law and diligent completion of formalities. It is also important to properly secure your finances so that foreign transactions do not prove to be fraudulent and fail.

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