The Polish VAT Act is silent on how to treat a transaction where goods are moved from Poland to a warehouse in another EU Member State and then exported out of the EU. Such a transaction is very difficult to properly classify, with the tax treatment depending on its specific circumstances, such as time of supply, time of customs declaration, or what happens to the goods while in storage.
This subject-matter is the focus of a private tax ruling issued by Polish tax authorities (ref. 0113-KDIPT1-2.4012.58.2024.3.JSZ). According to the ruling, where goods are moved from Poland to a warehouse in another EU Member State and then exported out of the EU, we could be dealing with two separate transactions for VAT purposes:
- an intra-Community supply of goods – this is the transportation from Poland to EU-based warehouse,
- an export of goods – this only happens when the goods are moved from the warehouse in another EU Member State to a customer outside the EU.
The fact that transport is interrupted while the goods are being stored in the EU precludes the entire operation from being treated as an export from Poland, even if the goods ultimately leave the EU territory.
The ruling has important consequences for businesses engaged in complex supply chains where goods are stored in the EU before being exported outside the Union. Proper treatment of such transactions for VAT purposes is crucial for ensuring tax compliance and limiting the related tax risk.
If this issue pertains to your business and you are seeking support in ensuring the VAT compliance of your warehousing and exports operations, feel free to contact us.
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