VAT on transport services - idea:

The service of transporting goods performed for the taxpayer is, as a rule, taxed at the place of the service recipient's seat. The VAT rate for this service depends on the type of transport performed. If the place of its provision is not the territory of our country, then this service will not be taxable in Poland (Article 28f, point 1a, point 1 the VAT Act). However, when the place of taxation is Poland, then this service may be taxed at the basic rate of 23% VAT or at the 0% rate (international transport). Taxation with tax on goods and services in accordance with the territoriality principle applies only when the place of supply and service provision (determined on the basis of the provisions of the Act) is the territory of the country through which - according to the definition contained in Art. 2 point 1 of the Act - shall mean the territory of the Republic of Poland, subject to Art. 2a of the Act (regarding cross-border bridges).

Under the VAT Act, the following types of transport can be distinguished:

  • domestic - performed entirely on the territory of Poland,
  • intra-Community - carried out between different EU member states,
  • international - starting in a country belonging to the European Union and ending in the territory of a third country, and vice versa, with a certain section of the route passing through the territory of Poland,
  • performed entirely outside the territory of the country.

VAT rate on goods transport services

The VAT rate on goods transport services may vary and depends on the type of transport performed. If it is international transport, then the 0% VAT rate applies. If it is intra-community and domestic, the rate of 23% applies. In the case of transport performed entirely outside the territory of the country, this service is not taxable in Poland.

In addition to international transport, referred to in the VAT Act, also several other cases of transport services are taxed at the 0% VAT rate (§ 6 of the Ordinance of the Minister of Finance). It can be used, among others in relation to services provided to the taxpayer within the meaning of Article 28a of the Act:

  • transport of goods, if it is performed entirely within the territory of the country and is part of the international transport service,
  • intra-Community transport of goods, if this transport is part of an international transport service,
  • transport of goods provided to the taxpayer, whose registered office is in Poland, and the transport is entirely performed outside the territory of the country:
  1. from the place of departure (sending) in the territory of a Member State other than the territory of the country to the place of arrival (destination) outside the territory of the European Union or
  2. from the place of departure (sending) outside the European Union to the place of arrival (destination) on the territory of a Member State other than the territory of the country.

Ordinance of the Minister of Finance of December 23.12.2013, XNUMX on goods and services for which the VAT rate is lowered, and the conditions for applying the reduced rates (consolidated text Journal Of Laws of 2017, item 839)

Taxation depends on the place of supply of services (Article 28 of the Act), it determines the method of taxation.

The place of taxation of a given service is determined not by the place of its actual performance, but the "place of its provision" indicated by the provisions of the VAT Act. It depends primarily on the type of service provided and the entity that provides (or purchases) it. This means that the entity obliged to settle VAT is not always a Polish service provider, even if the service is provided in the country and not abroad. For some services, the foreign buyer will always be required to settle the tax. For others, additional conditions will have to exist that will shift the tax obligation to the buyer.

Transport services of goods provided by the Polish recipient:

principal place of performance VAT rate
National transport
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act) 23%; 0% if it concerns international transport **) and for services specified in § 6 sec. 1 point 1 regulation on reduced VAT rates
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of the country PL(Article 28f (1a) (2) of the VAT Act) 23%; 0% if it concerns international transport **), and for services specified in § 6 sec. 1 point 1 regulation on reduced VAT rates
Not a taxpayer The territory of the country PL(Article 28f (2) of the VAT Act) 23%
Intra-Community transport
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act) 23%; 0% if it concerns international transport **) and for specific services § 6 sec. 1 point 1 regulation on reduced VAT rates
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer Place where transport begins *)(Article 28f (3) of the VAT Act) 23% - if it starts in the country of PL on the whole section on which the service takes place or 0% (§ 6 (1) (2) of the Regulation on reduced VAT rates) if it is part of international transport

For example - not subject to, if it starts in another EU country along the entire section, also on the domestic section (e.g. transit)

International transport
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act) 0% (Article 83 (1) (23) of the VAT Act)) with the obligation to have documentation Art. 83 paragraph 5 of the Act
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer Services - by plane, by ship The territory of the country PL

(§ 3 section 1 point 2 of the Ordinance of the Minister of Finance on the place of service provision and return .... Journal of Laws of 2013, item 1656)

Services - by car or other means of transport

The territory of the countries where the transport takes place

(Article 28f (1) (2) of the VAT Act)

0% on the entire route with the obligation to have documentation Article 83 (5)0% - on a section in the country PL - documentation Article 83 (5)

For example - not subject to the distance outside the country, taking into account the distance covered

Transport outside the country
Taxpayer PL Territory outside the EU(Article 28f (1a) (1) of the VAT Act) NP. - not subject to transport being carried out entirely outside the EU
The territory of the country PL(Article 28b of the VAT Act in correspondence with § 6 paragraph 1 of the Regulation on reduced VAT rates) 0% - if the transport starts in another EU country and ends outside the EU and vice versa (not within PL) with the obligation to have documentation Article 83 (5) otherwise - 23%
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer The territory of the countries where the transport takes place(Article 28f (1) (2) of the VAT Act) For example - is not subject to

*) Place of commencement of transport (Article 28f (4) of the VAT Act) is the place where the transport of the goods actually begins, irrespective of the distance traveled to the place where the goods are located

**) International transport - Article 83 (1) point 23

By international transport services - it is understood:

  1. Carriage or other way of moving goods:
  • from the place of departure (origin) within the territory of the country to the place of arrival (destination) outside the territory of the Community,
  • from the place of departure (origin) outside the territory of the Community to the place of arrival (destination) within the territory of the country,
  • from the place of departure (origin) outside the territory of the Community to the place of arrival (destination) outside the territory of the Community, if the route passes through the territory of the country (transit) for some part,
  • from the place of departure (sending) in the territory of a Member State other than the territory of the country to the place of arrival (destination) outside the territory of the Community or from the place of departure (sending) outside the territory of the Community to the place of arrival (destination) in the territory of a Member State other than the territory of the country, if the route runs along a certain section through the territory of the country.
  1. Carriage or other means of moving people by sea, air and rail:
  • from the place of departure within the territory of the country to the place of arrival outside the territory of the country,
  • from the place of departure outside the territory of the country to the place of arrival in the territory of the country,
  • from the place of departure outside the territory of the country to the place of arrival outside the territory of the country, if the route passes through the territory of the country at some point (transit).
  1. International brokerage and forwarding services related to the services referred to in points 1 and 2 above.

 

International brokerage and forwarding services related to the above-mentioned services. (Article 83 (3) (3) of the VAT Act)

Documents proving the provision of international transport services are in the case of transport (Article 83 (1) (1), and for imported goods, point 2):

  • of goods by a carrier or forwarder - a bill of lading or a forwarding document (rail, air, road, sea bill of lading, inland waterway bill of lading), used only in international transport, or another document which clearly shows that as a result of transport from the place of shipment to the place destination, the border was crossed with a third country, and an invoice issued by the carrier (forwarder),
  • imported goods - in addition to the documents referred to in point 1, a document certified by the customs office, which clearly shows the fact that the value of the service is included in the tax base for the import of goods,
  • goods by the exporter - proof of exportation of the goods.

In the absence of the above documents, especially when importing goods (pursuant to Article 2 (7) of the Act - this shall mean the import of goods from the territory of a third country to the territory of the European Union)when there is no document confirmed by a national customs office or from another EU country, which clearly shows the fact that the value of the transport service (in case of clearance in another EU country) is included in the part of transport from the EU country where the goods were imported to the destination in the territory In Poland, the service will be taxed at 23% VAT up to the taxable amount for the import of goods.

Warning: Only the entity which includes the value of the shipping service in the tax base upon import has the right to apply the preferential VAT rate.

The Freight Forwarder acting as a subcontractor of the services provided (i.e. on behalf of another forwarder acting on behalf of the Importer), even with the indicated documentation, will not be entitled to apply the 0% VAT rate for the above-mentioned services, because it will not meet the condition resulting from Art. 83 sec. 5 point 2 of the Act.

VAT rate on shipping services

The scope of activities performed under the forwarding contract is specified, inter alia, in Art. 794 § 1 of the Civil Code, which is the basic provision regulating the forwarding contract, which states that by the forwarding contract, the forwarder undertakes to send or receive the shipment or to perform other services related to its transport for remuneration in the scope of his company's activity. While, according to the code definition of the contract of carriage contained in Art. 774 of the Civil Code, by the contract of carriage, the carrier undertakes to transport people and goods for remuneration in the scope of its business activity.

If we are dealing with forwarding services within the meaning of Art. 794 of the Civil Code, thus, taking into account the content of Art. 28b paragraph. 1 of the VAT Act, the place of providing these services is the place where the taxpayer who is the service recipient has his registered office.

Warning: the preferential 0% VAT rate in shipping can only be applied to international transport services, it is not possible to use preferences determined on the basis of § 6 of the Regulation of the Minister of Finance, because the routes specified therein are different than those specified in the provisions on international transport, and only such are the provisions that equate international brokerage and forwarding with international transport services.

Forwarding services provided by the Polish service provider:

principal place of performance VAT rate
Domestic forwarding
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act) 23%
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of the taxpayer's country (i.e. in a third country)(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer Service provider's country territory PL(Article 28c (1) of the VAT Act) 23%
Intra-Community forwarding
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act) 23%
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act For example - is not subject to
Not a taxpayer Service provider's country territory PL(Article 28c (1) of the VAT Act), subject to: (Article 28h of the VAT Act) - Place where services are performed - for services auxiliary to transport services such as loading, unloading, reloading or similar services. 23% for services performed within the territory of the country and for intra-EU transport of theNP. - is not subject to for ancillary services made outside the territory of the country
International forwarding
Taxpayer PL The territory of the country PL(Article 28b (1) of the VAT Act 0% (Article 83 (3) (3) of the VAT Act) with the obligation to have documentation as for transport services Art. 83 paragraph 5 of the Act23% - in the absence of documentation
Taxpayer PL - another forwarder (service performed as a forwarding subcontracting - the client is another domestic forwarder acting on behalf of the Importer) Forwarding services performed entirely outside the EU (for the ordered forwarding service between a third country and a country border with a non-EU country)(Article 28b (1) of the VAT Act) - place of supply in Poland 23%
Forwarding services performed entirely outside the territory of the country (between a third country and an EU country) - for a forwarding order that covers only this section.(Article 28b (1) of the VAT Act) - place of supply in Poland
The territory of the country PL (from the Polish border with a non-EU country to the first destination of imported goods on Polish territory) - when executing the order only on the national section from the border to the destination in the country(Article 28b (1) of the VAT Act) - place of supply in Poland 23%
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer Service provider's country territory PL(Article 28c (1) of the VAT Act) subject to (Article 28h of the VAT Act) - Place where services are performed - for services auxiliary to transport services such as loading, unloading, reloading or similar services. 0% (Article 83 (3) (3) of the VAT Act) with the obligation to have documentation as for transport services Art. 83 paragraph 5 of the Act23% - in the absence of documentation
Forwarding outside the country
Taxpayer PL Forwarding services performed entirely outside the EU(Article 28b (1) of the VAT Act) - place of supply in Poland 23%
Taxpayer from the EU The territory of the EU taxpayer's country(Article 28b (1) of the VAT Act) For example - is not subject to
Non-EU taxpayer The territory of a non-EU taxpayer country(Article 28b (1) of the VAT Act) For example - is not subject to
Not a taxpayer The territory of the country where the services are actually performed(Article 28c (1) in connection with Article 28h (1) of the VAT Act)

Place where services are performed - for services auxiliary to transport services such as loading, unloading, reloading or similar services

For example - is not subject to

Elements of shipping services excluded from the possibility of applying the 0% rate:

- insurance of transported goods, also as part of the international transport service in connection with their import, when the insurance value is included in the customs value of the imported goods (art. 83 paragraph

 1 point 20 of the VAT Act) - mandatory rate of 23% VAT.

Tax authorities distinguish between goods transport services and forwarding services. The consequence of the positions presented by the tax authorities is the need to determine the place of provision of these two services on different principles.

Therefore, it is necessary to identify the subject of the transactions carried out each time and determine whether the provision of transport services or forwarding services, as these activities may cause different consequences in the tax on goods and services.

Guidelines developed in the jurisprudence of the Supreme Court may be helpful in this respect. For example, in the judgment of 6 October 2004 (I CK 199/04), the Supreme Court ruled: "If an offer is accepted, which only refers to the transport of goods, and no concluding actions indicate the existence of additional contractual provisions covering services related to transport, the contract concluded by accepting the offer is strictly a contract of carriage, not a forwarding contract ”.

When, therefore, the content of the legal action shows that it covers only the carriage of goods and there are no additional contractual provisions (even implied) for services related to this transport, it is the provision of transport, not forwarding.

In the case of the provision of forwarding services, the tax offices take the position that it is not possible to apply the zero percent rate. for forwarding services performed on the domestic section of international transport, which is permissible if the service is recognized as a transport service while maintaining the documentation requirements in accordance with the provisions of art. 83 section 5 (forwarding subcontracting).

Taxation of transport services in international trade

The Client The service provider Place of taxation VAT rate Tax liability
Service import
- international transport
taxpayer PL entity from another country Art. 28b - buyer's seat (PL - import of services) 0% of the total service art. 19 paragraph 19a - upon the performance of the service
- intra-Community transport
taxpayer PL entity from another country Art. 28b - buyer's seat (PL - import of services) 23% of the total service art. 19 paragraph 19a - upon the performance of the service
Exports of services
taxpayer from another country taxpayer PL Art. 28b - buyer's seat (outside the country) NP * for the entire service art. 19 paragraph 19a - upon the performance of the service
- international transport
Not a taxpayer from another country taxpayer PL Art. 28f paragraph 2nd place where transport takes place according to a kilometer key 0% to the part of the service performed in PL, the rest of the NP * art. 19 paragraph 13 point 2 lit. a) - upon receipt of payment, no later than on the 30th day from the date of service provision
- intra-Community transport
Not a taxpayer from another country taxpayer PL Art. 28f paragraph 3 - place where transport begins 23% for the total if the transport starts in PL, if in another country, then NP * for the entire service art. 19 paragraph 13 point 2 lit. a) - upon receipt of payment, no later than on the 30th day from the date of service provision

NP * - not subject to tax in Poland