Since the 1st of July 2020, settling VAT in the tax declaration will be available for all VAT taxpayers regardless of the method of customs declaration they use: simplified or standard one. Taxpayers who have their own customs authorizations (AEO or authorizations for simplifications meaning incomplete declaration and entry in the declarant’s records) will be able to submit customs declarations and settle the import VAT in tax declaration without participation of the tax representative.
Settling import VAT in a tax declaration instead of paying it in 10 days from receiving notification about customs debt substantially improves the cash-flow of importers. Possibility to settle VAT due for importation of goods from outside the EU in the tax return arises from the art. 33a of the VAT Act. Until the 1st of July this option is available only for entities, who submitted declaration to release goods into free circulation via two simplification methods provided by the Union Customs Code, namely: incomplete declaration and entry in the declarant’s records. In both of these cases separate authorization or customs representative, who would share its authorization was required.
According to the amendment of the VAT act, main requirement concerning possibility to use the tax settlement from the art. 33a of the VAT Act will be to submit the customs declaration by a customs representative – direct or indirect, according to the relevant customs provisions. This condition is not required from the taxpayers who have their own customs authorizations will be able to submit customs declarations and settle the import VAT in tax declaration without participation of the tax representative.
The amendment not only covers the possibility of settling import VAT in a tax return without limitation on the type of customs declaration, but also includes additional changes, including:
- Designation of the authority to which the required documents can be filed in order to settle the tax according to the art. 33a of the VAT Act. It will be the head of the customs and revenue office competent for the seat or place of residence of the taxpayer, and in the case of taxpayers not having a seat or place of residence in the territory of the country – the Head of the Dolnośląski Customs and Revenue Office in Wrocław.|
Thanks to this change, the documents will be filed to only one authority. Previously many companies was filing those documents to every head of customs and revenue office who were involved in customs clearance out of the procedural caution.
- Still remains in force the joint and several liability of the direct and indirect customs representatives (the amendment of the 2016 was kept). From 1st July 2020r r. this liability, is limited, i.e. liability concerning the obligation to pay the tax with interest does not extends to the representative, who acts on behalf of the taxpayer, who possess one of the following authorizations: AEO or authorizations for simplifications meaning incomplete declaration and entry in the declarant’s records.
- Removal of the obligation, according to which taxpayer who was using the tax settlement in tax declaration was obliged to submit the documents confirming settlement of the tax due for importation of goods in tax declaration to the head of the customs and revenue office in 4 months after the month in which the tax liability concerning import of goods was created. This change will enter into force from October 1, 2020, due to Anti-crisis Shield 4.0.
- Likewise thetaxpayer’s liability was modified – until now it was depended on the formal submission of the above mentioned documents. After the amendment, the liability will arise if the taxpayer made the choice of the more favorable form of the import VAT tax settlement, but this taxpayer failed to fulfill the obligation of settling the import VAT in is VAT returns entirely or partially according to the rules included in the VAT act. In that case the taxpayer loses the right to settle the tax in the VAT returnregarding the amount of VAT due for importation of goods, which was not settled in the tax return. This change will also enter into force from October 1, 2020, due to Anti-crisis Shield 4.0.
Taking into the consideration the fact that the essential changes consider relations between the taxpayers and their customs representatives, it will be important to consult with tax advisors and customs representatives the rules and practical approach in order to benefit from the amended art. 33a of the VAT act.