Despite some concerns, Poland managed to meet the deadline for implementing the EU VAT e-commerce legislation. Starting from 1 July 2021, new rules governing cross-border sales of goods or services to final consumers (B2C) have been in force.

Changes introduced by the e-commerce package include:

  • Removal of national thresholds for distance sales of goods within the EU and their replacement with one uniform threshold for the whole EU of EUR 10,000 (PLN 42,000 for companies based in Poland)

Until 1 July 2021, taxpayers selling goods dispatched from Poland to consumers based in other EU countries could apply Polish VAT rates until the thresholds determined by those countries were reached. Similar settlement was available for foreign suppliers selling goods to Polish consumers. Under the new rules, there is only one threshold applicable to all distance sales of goods within the EU and provision of telecommunications, broadcasting and electronic services (TBE services) to customers (B2C) – once the seller exceeds the threshold, all such supplies are subject to VAT in the country of the customer, which means that VAT rates applicable in the country where the customer lives need to be applied. Also, this entails the duty to register for VAT purposes in all countries where the goods are dispatched (TBE services are performed). Alternatively, in order to avoid multiple registrations, the seller may opt to use the OSS scheme (see below).

  • Online marketplaces/platforms facilitating supplies of goods will be considered intermediaries (‘deemed suppliers’) responsible to charge VAT at rates applicable in the country of the customer’s residence – this special arrangement applies to two situations:
    • where the goods in consignments of value not exceeding EUR 150 are imported from outside of the EU or
    • where the supply of goods located in the EU is effected by a supplier established outside the EU.
  • New model of taxation of distance sales of goods imported from outside the EU in consignments of value not exceeding EUR 150 due to the fact that all previous exemptions at importation of low value shipments have been abolished.
  • New special schemes have been introduced in order to facilitate VAT settlements under the new e-commerce rules
  • The MOSS (mini-one-stop-shop) scheme, applicable so far only to providers of TBE services, has been extended to become the OSS (one-stop-shop) allowing to settle VAT due in different EU countries through a single VAT return submitted to the taxpayer’s national tax administration also on other types of services and on distance sales of goods within the EU.
  • Moreover, the new IOSS (Import One-Stop-Shop) has been introduced to facilitate payment of VAT in case of distance sales of low value goods imported from outside the EU. Where the IOSS is not applied, special arrangements for distance sales of imported goods – allowing, i.a. couriers and postal operators to settle VAT on import on behalf of their clients in monthly periods – may be used instead.
  • Application of the schemes entails additional duties (including keeping new types of records).

If you are unsure whether the new e-commerce package affects your company or need guidance in adjusting your business to the new reality, please do not hesitate to contact us.