SALES SUBJECT TO VAT REVERSE CHARGE
If you intend to sell to other businesses, inter alia, electronic equipment (telephones, consoles, laptops) the so-called procedure of reverse VAT (reverse charge) will apply to you. It means that the buyer, not the seller of the good undertakes to pay the tax.
The VAT reverse charge procedure is regulated in the Act of 11 March 2004 on the goods and services tax and in Annex 11 to the Act. The list of products includes, inter alia, steel, gold material or semi-manufactured or electronic equipment sold wholesale.
Taxpayers in the sale of such products issue the invoice without VAT rate charged and shown with a note REVERSE CHARGE, which gives rise to an obligation for a settlement by a purchaser.
Who is entitled
The procedure for reverse VAT applies if
- an entrepreneur who supplies is not exempt from tax, not exceeding the turnover of PLN 150,000;
- the purchaser is an active VAT taxable person;
- supply is not covered by the exemption, namely the use of the goods will not be associated solely for an activity exempted from VAT.
Entrepreneurs purchasing products placed under the procedure must remember that they are obliged to settle and pay the VAT.
Remember that the taxable person carrying out the supply of goods or providing services for which the taxable person is the purchaser (reverse charge) are obliged to submit to the tax office summary information on the supply of goods and provision of services in the recapitulative statements in domestic trade. More on this topic in the publication - Summary information at domestic trade.
The purchaser shall settle VAT on the goods purchased at the same time taking into account the output and input tax (neutral transaction in terms of VAT).
Additional information on VAT in terms of the reverse charge mechanism can be found here.Share Print