VAT TAX POLICY

WHAT IS IT ?

Value added tax (VAT) is a consumption tax that is applied to almost all goods and services bought and sold for use or consumption in the EU. Standard VAT rules apply in the EU, but these rules may apply differently in each EU country. In most cases, you have to pay VAT on all goods and services at all stages of the supply chain, including sales to the final consumer. This includes from the beginning to the end of the production process, incl. purchase of components, transport, assembly, provisions, packaging, insurance and shipment to the end consumer.

WHY PRICES ARE WITHOUT VAT TAX?

On our website, the prices of the products are exclusive of VAT. The tax is charged depending on the country of shipment. Remember that when shipping to countries outside the EU, you are obliged to pay customs and tax in your country according to local law. Deem Flywear does not provide information regarding the customs laws of individual countries. Before purchasing, please read the import conditions to the country to which the product is to be shipped.

WHEN 23% VAT IS CHARGED?

For  EU-based  companies  and  for  private  persons  VAT  is  chargeable  on  most  sales  and  purchases  of goods  within the  EU.  In  such  cases, 23%  VAT  is  charged  and  due  in  the  EU  country  where  the  goods  are consumed  by  the  final  consumer.  Likewise,  VAT  is charged  on  services  at  the  time  they  are  carried  out in  each  EU  country. 

WHEN VAT TAX IS 0%?

Taxpayers selling goods to recipients in EU countries may apply a 0% VAT rate for intra-Community supplies of goods (intra-community supply of goods). The condition for its application is the collection of documentation confirming the export of the goods (by the seller or the buyer) to the recipient in another EU country. Also, a non-transactional movement of goods to another Member State is in some situations reported as intra-Community supply. It is also possible to treat a shipment to a consignment warehouse in another EU country as an intra-Community supply, which is taxed only upon their release from this warehouse, without the need to register for VAT in the country where the warehouse is located.

The 0% VAT rate is also applied to the export of goods, i.e. a transaction that takes place when goods are exported from Poland outside the EU. An export can be both exports by the seller (direct export) and by the buyer (indirect export). The condition for applying the 0% rate is that the taxpayer has customs documents confirming that the goods left the territory of the EU.

In the case of the acquisition of goods transported from another EU Member State to Poland, the Polish taxpayer is obliged to settle this transaction as an intra-Community acquisition of goods (WNT) on the basis of the so-called reverse charge of VAT. This means that he should show this transaction both on the side of sales (output tax) and has the right to show it on the side of purchases (input tax), in the same amount. As a result, such a transaction is generally financially neutral. Also, a non-transactional movement of goods from another Member State is reported as intra-Community supply in certain situations. In the latter situation, it is possible to apply a simplification known as a consignment warehouse - the obligation to settle VAT arises not when goods are moved to Poland, but only when they are taken from the warehouse (this does not apply, however, to goods intended for distribution).

The import of goods subject to VAT in Poland is considered to be the import of goods from outside the European Union to Poland. Import VAT can be settled in several ways. According to the general rules, VAT is paid to the customs authorities along with other customs duties, and then, upon receipt of the customs documents, it is deducted as input tax on the VAT return. Under certain conditions, it is possible to settle the import of goods in the VAT declaration (both due and input VAT) in the case of using simplified customs procedures, as well as settlement of imports under centralized clearance (settlement of imports to all EU countries in one of them) in the import declaration, including all such transactions for the month.

The VAT exemption covers, inter alia, import of goods placed under the inward processing procedure, goods placed under the temporary admission procedure with total duty exemption, advertising material and samples of goods. There is also an exemption for goods that are intended to be intra-intra-Community supplies.