As of 1st May 2019, the option to use postponed accounting on imports into Poland will be restricted. Under the scheme, importers may account for import VAT, in their next Polish VAT return through a reverse charge mechanism, instead of paying it over to the customs authorities.
Without the use of this simplification measure, businesses importing goods into Poland generally have to pay the customs duties and VAT due at the time of importation, prior to the goods being released. Then, they may deduct that import VAT in their subsequent VAT return. Many companies are making use of the procedure because it positively impacts cashflow.
However, from 1st May 2019, in accordance with revised customs law (the Union Customs Code), a company only qualifies for the scheme subject to satisfying the following conditions:
- It has been granted the status of Authorised Economic Operator (AEO) or has its own customs simplification authorisation; or
- It uses an authorised customs agency (as its indirect representative) that uses customs clearance simplification measures such as inward processing and customs warehousing.
Companies may continue to use their existing customs simplification permits until the earliest of either the permits’ expiry date, or 30th April 2019 after which they must be reassessed. Applications for permits take between four to six months to process, which is a similar time period to obtain AEO status.
If you are affected by the above development or are eager to discuss the import VAT postponed accounting scheme in more detail, please do get in touch.