With the progress of digitization and the development of delivery and settlement models (including self‑invoicing / self-billing), Polish tax authorities are adapting their approach to the new realities – including the documentation confirming the 0% VAT rate in intra‑Community supplies (ICS). For years, the application of the 0% VAT rate for intra-Community supplies of goods in Poland was rigorously scrutinized by tax authorities. They meticulously examined whether businesses met the conditions for applying the 0% rate, requiring specific supporting documents – preferably in original paper form, as they were generally doubtful of modern digitalized solutions.

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Nowadays, while the authorities still ensure that the evidence clearly identifies the entities involved, the transported goods, and the movement locations, they are fortunately becoming more receptive to modern solutions and alternative forms of proof that confirm these details. Such conclusions can be drawn from a review of the individual interpretations issued in these matters.

Polish law remains unchanged

The implementation of EU Directive 2018/1910, the so‑called “Quick Fixes package,” in 2020 raised many doubts regarding tax practices in the area of intra‑Community supply of goods. Nevertheless, both taxpayer practices and those of the authorities are constantly evolving, adapting to changing realities and digitalized documents.

Initially, proofs of supply – including those generated by courier shipment tracking systems – were not readily accepted by the tax authorities. The authorities applied strict criteria regarding the acceptable variants of ICS documentation and were reluctant to recognize certain documents as full evidence of delivery. Currently, they are increasingly and more confidently accepting technologically advanced proofs of the actual delivery outside of Poland, while paying special attention to the consistency and accuracy of all evidence confirming the delivery.

To apply the 0% rate for an intra‑Community supply of goods, the taxpayer is required to meet the conditions specified in Article 42(1) of the VAT Act, and must also possess the documentation required by Articles 42(3–5) and, if applicable, Article 42(11) of the VAT Act. Additionally, in resolution of 11 October 2020, the Supreme Administrative Court clarified the conditions for applying the 0% rate, stating that the documentation should collectively confirm both the dispatch of the goods and their arrival to the buyer located in another EU Member State.

It was expected that the introduction of the EU Quick Fixes package – and its collision with Polish regulations and tax authority expectations – would cause considerable confusion. In practice, however, overly detailed and restrictive requirements have been waived, thereby simplifying procedures for gathering documentation of goods supplied outside Poland, while focusing on whether the evidence clearly demonstrates (i) the subject of the transaction, (ii) the origin and destination of the goods, and (iii) who collected them (and what role the recipient plays in the supply chain, if they are not the direct buyer).

Currently, the basic and optimal documents for applying the 0% VAT rate in ICS include:

  1. Invoice (or its copy) – documenting the ICS, the invoice must include a specification of the individual units of cargo.
  2. Transport Document, depending on the mode of transport:
    1. road – the international consignment note (CMR),
    2. sea – the bill of lading (Bill of Lading, B/O, BOL),
    3. air – Air Waybill (AWB),
    4. rail – the international rail transport document (CIM and SMGS), containing the signatures/stamps of the sender, carrier, and recipient of the goods.
  3. Additional Documents confirming the receipt of the goods by the contracting party, for example:
    1. a statement from the contracting party confirming receipt of the goods,
    2. a document generated in the contracting party’s logistics and accounting systems (e.g., “Proof of Delivery”, “Delivery Note”, “Confirmation of goods receipt under the ICS”),
    3. an electronic delivery confirmation obtained from the carrier’s system.

Digitization and the application of the 0% rate

The latest individual interpretations and tax authority practices indicate an increasingly flexible and updated list of documentation variants required for ICS, which are sufficient for applying the 0% VAT rate.

Today, logistics systems and shipment tracking tools – which were previously considered merely as supporting evidence – are now accepted as full evidence of delivery. As a result, a set of evidence consisting of an invoice and a carrier’s document (e.g., a scan of the delivery list from the carrier’s system or a confirmation from the tracking system), which is one of the basic standards in trade, is deemed sufficient to justify the application of the 0% VAT rate (ref. 0114-KDIP1-2.4012.573.2024.1.GK).

However, this is not the only acceptable set of documents. Other documentation variants have also been distinguished in interpretations, appropriately adapted to a given business model and the specifics of the supply chain, including:

  1. CMR: An invoice + a CMR signed by the sender, carrier, and recipient or a CMR bearing the stamp of a logistics center in the EU, if the goods are delivered to an intermediary warehouse.
  2. Post‑delivery confirmation: An invoice + CMR + a confirmation of payment for the goods after delivery or an invoice + a document from the contracting party’s system confirming receipt of the goods.
  3. Statement: An invoice + a declaration from the contracting party confirming receipt of the goods (which may be in the form of an email or a scanned document, preferably signed by persons who have actual knowledge of the delivery and are authorized to represent the contracting party).

Tax practice in recent years clearly demonstrates that tax authorities now widely accept electronic documentation, including emails, scanned documents, and confirmations from shipment tracking systems.

Self‑Invoicing

A documentation variant that entitles the application of the 0% rate in cases of self‑invoicing –an approach that is gaining increasing popularity – has also emerged in case law.

Self‑invoicing involves the issuance of invoices by the party acquiring goods or services on behalf of and for the benefit of the taxpayer.

A prerequisite for applying this provision is the prior conclusion of an agreement between the taxpayer and the buyer regarding the issuance of invoices on behalf of and for the benefit of the taxpayer, in which the procedure for approving individual invoices by the buyer is defined.

The invoice issued under self‑invoicing should, in particular, include a specification of the individual units of cargo and a declaration from the buyer confirming receipt of the goods to which the invoice relates. Furthermore, such an invoice should be generated by an electronic system only after the goods have been received by the contracting party. At that point, it constitutes sufficient evidence to justify the application of the 0% rate for ICS.

To further complement the documentation, an accompanying document (a so‑called “Delivery Note”) may also be attached, which confirms the course of the transport to the contracting party.

Taking the above into account, taxpayers involved in ICS transactions can look to the future with optimism, expecting that tax authorities will continue to adopt a broad approach to recognizing the documentation that entitles the application of the 0% rate.

At the same time, with changes in the way documents are stored and the ongoing digitization of accounting and logistics processes, the range of accepted documentation variants may undergo further modifications in the future. Tax authorities may adjust their approach to new technologies, potentially affecting the scope and form of the evidence required for applying the 0% VAT rate.