- TSUE issued a ruling on a Polish case regarding VAT transaction classification when discrepancies arise between initial agreements and actual movement of goods.
- The case involved a Polish supplier who declared a transaction as an intra-community supply, but the goods were exported outside the EU by the buyer without the supplier’s knowledge.
- Polish tax authorities found evidence of export outside the EU and attempted to impose a 5% domestic VAT on the transaction.
- The issue arose when the buyer transported goods to Belarus instead of Lithuania, contrary to the original agreement.
- Polish tax authorities questioned the classification as intra-community supply and the application of a 0% rate, arguing it should be taxed as a domestic supply.
- WSA in Warsaw initially ruled it was an indirect export with a 0% rate, but NSA disagreed, stating the supplier cannot change the transaction’s classification post-agreement.
- The case was referred to TSUE for preliminary questions.
- TSUE ruled that a supply can be considered an export if the goods leave the EU, even if initiated by the buyer without the supplier’s knowledge, provided export conditions are met.
- TSUE emphasized the need for reliable documents to apply a 0% VAT rate and acknowledged tax authorities’ right to assess abuse risks.
Source: crido.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
