The new provisions modify the existing VAT special schemes laid down in the VAT Directive (non-Union scheme, Union scheme) and add a new one (import scheme). A summary of the most important law changes in the field of e-commerce can be found in the previous article and the electronic platforms as deemed supplier have been also already described here. This text summarizes the provisions of the e-commerce law regarding the special schemes.
The Mini One Stop Shop (MOSS) is an electronic system allowing taxable persons supplying telecommunications, broadcasting and electronic (TBE) services to consumers in the EU to declare and pay VAT due in all EU Member States in one single Member State. As from 1 July 2021, MOSS is extended to all B2C services taking place in Member States where the supplier is not established, to intra-Community distance sales of goods and to certain domestic supplies of goods …
A summary of the most important law changes in the field of e-commerce can be found in the previous article. The special schemes, a.o. OSS and IOSS, have been also described here. This text summarizes the provisions of the e-commerce law regarding electronic interfaces.
In order to help better understand the new law, the European Commission Directorate – General Taxation and Customs Union issued the Explanatory Notes on VAT e-commerce rules. According to these notes, the taxable person facilitating the supply of goods through the use of an electronic interface such as a marketplace, platform, portal or similar means is the deemed supplier in case of:
- distance sales of goods imported from third territories or third countries in consignments of an intrinsic value not exceeding EUR 150, frequently referred to as low value goods – Article 14a(1), or
- supplies of goods within the Community by a taxable person
From 1 July 2021, a number of amendments to Directive 2006/112/EC (the VAT Directive) apply affecting the VAT rules applicable to cross-border business-to-consumer (B2C) e-commerce activities.
In order to help better understand the new law, the European Commission Directorate – General Taxation and Customs Union issued the Explanatory Notes on VAT e-commerce rules. According to these notes the changes address challenges arising from the VAT regimes for distance sales of goods and from the importation of low value consignments, namely:
- As EU businesses selling goods online to final consumers located in other Member States need to register and account for VAT in the Member State of the consumer when their sales exceed the distance sales threshold, i.e. EUR 35 000/100 000. This imposes a significant administrative burden on traders and impedes the development of intra-EU online trade.
- Since a VAT exemption is granted for the import of low value goods
This publication regards the VAT on sale and rent of private flats and commercial space. The assumption is that the taxpayer is a company with legal personality, that is an active VAT payer in Poland.
The following questions have been answered below:
- Which VAT rate should be applied?
- What about rental? If the company or subsidiary will rent space and flats, how is the VAT settled?
- What in case of sale, is there a VAT on the notarial deed? How is the VAT settled?
- Is there any VAT that cannot be deducted from commercial activities (rent, sale)?
- What is the settlement of VAT during construction (no or low sales)?
- How does the VAT settlement between 23% (such as paid to the general contractor) and 8% (sale to a private person) look like?
Ad. A. Which VAT rate should be applied?
The legislator in art. 41 paragraph 12-12c of the …