Tax explanations on the VAT e-commerce package

On 1 July 2021, the VAT Act was amended with regard to e-commerce, including imports of small consignments to the European Union. The amendment implements the EU VAT e-commerce package and significantly changes the rules of VAT taxation for Polish e-commerce entrepreneurs making cross-border supplies of goods and providing cross-border services to EU consumers.

Learn more: Poland implements the EU VAT e-commerce package

At the request of entrepreneurs, the Ministry of Finance has prepared the tax explanations. They address the issue of invoicing and recording obligations. Moreover, they contain a guide to the main solutions in the VAT e-commerce package and 66 practical examples of how to apply the new regulations. 

The tax explanations will be binding for the tax administration authorities.

The tax explanations on the VAT e-commerce package include a review of the following solutions:

• intra-Community distance sales of goods (WSTO) (definition, place of supply, the moment at which the tax obligation arises, documentation confirming the delivery of goods to the purchaser, invoicing, recording obligations),
• distance selling of imported goods (SOTI) (definition, place of supply, the moment at which the tax obligation arises, invoicing, recording obligations),
• the role of electronic interface (platform) operators,
• special procedures called One Stop Shop - OSS (EU and non-EU procedure),
• a special procedure called Import One Stop Shop - IOSS (import procedure),
• a simplified procedure for declaring and deferring payment of import tax on goods in consignments of less than EUR 150 (the so-called "USZ procedure").

The above solutions of the amendment to the VAT Act came into force on 1 July 2021.

See also: Webinar: Selling online: practical experience of the new VAT e-commerce rules in the EU and UK