Importing goods from non-EU countries is one of the basic transactions subject to VAT. However, the Polish legislator has provided a number of exemptions intended to rationalise the tax system and remove from taxation activities that are not commercial in nature. Particularly important is the VAT exemption on importing goods with no commercial value, which covers a wide range of documents and items used in public, educational and cultural activities.
This exemption follows from the basic principle that VAT is meant to tax professional business trade, not activities of an administrative, educational or cultural nature. Understanding how this exemption works is essential for importers, public institutions, international organisations and businesses trading with countries outside the European Union. Where the exemption does not apply, imports are taxed at the current VAT rates.
Legal basis for taxing imports of goods
Importing goods as a transaction subject to VAT is governed by the VAT Act (ustawa o podatku od towarów i usług). Under Article 5(1) point 3 of the VAT Act, the import of goods into Poland is subject to this tax. The definition of import of goods is set out precisely in Article 2 point 7 of the VAT Act as bringing goods from the territory of a third country into the territory of the European Union.
Import of goods covers only goods brought in from third countries, i.e. countries outside the European Union. Bringing goods in from other EU countries is not an import within the meaning of the VAT rules, but an intra-Community acquisition of goods
An important aspect of taxing imports is that import VAT is not the same as VAT on domestic sales. The WSA (Voivodeship Administrative Court) in Opole, in its judgment of 21 March 2018 (I SA/Op 23/18), stressed that the same goods may be taxed, but this will result from two different transactions: import and domestic sale. This does not mean the goods are taxed twice, but that different transactions concerning the same goods are taxed. A similar distinction between transactions arises when selling goods without shipping them abroad.
Under Article 26a(1) of the VAT Act, the place of import of goods is the territory of the Member State in which the goods are located when they enter the territory of the European Union. This rule is important for determining the local competence of the tax authorities and which national rules apply.
The taxable person for import VAT is any person who is liable to pay customs duty. This also includes individuals who do not run a business and are not registered in CEIDG (Central Register and Information on Economic Activity)
It is particularly important to understand that import covers the physical bringing of goods into Poland from a third country, regardless of whether this is done as part of buying the goods from an external entity or bringing in one's own goods. Bringing in goods owned by the importer is also an import of goods within the meaning of the VAT rules.
How import is taxed and the taxable person's obligations
Imports of goods are taxed regardless of whether, under customs rules, the imported goods were exempt from customs duty or a preferential customs rate was applied. This means that a customs exemption does not affect the tax obligation for VAT.
Procedure for taxing imports
- The tax obligation arises when the customs debt is incurred
- Determining the taxable amount (customs value + customs duty and, where applicable, excise duty and additional costs)
- Calculating VAT at the appropriate rate
- Payment of the tax by the taxable person liable to pay customs duty
- The option to deduct input VAT if the conditions are met
The tax obligation on imports of goods arises when the customs debt is incurred, which usually happens when the customs authority accepts the customs declaration. The taxable amount is the customs value of the goods increased by the customs duty due and, for excise goods, also by excise duty (Article 30b(1) of the VAT Act), which means that VAT is calculated on a value that already includes customs duty. The taxable amount also includes additional costs (commission, packaging, transport, insurance) up to the first place of destination in Poland, if they were not included in the customs value (Article 30b(4)).
The taxable amount on import consists of the customs value of the goods and the customs duty due (and, where applicable, excise duty and additional costs). Even if the goods are exempt from customs duty, the VAT taxable amount remains the customs value of the goods
The system of taxing imports is designed to ensure equal treatment of imported and domestic goods in further trade. A taxable person can deduct the VAT paid on import if it meets the conditions for deducting input VAT under the VAT Act. We enter VAT from customs documents in the purchase register as part of the bookkeeping services we provide.
Note in particular that a person's status as a taxable person for import VAT does not depend on running a business. Even individuals importing for private purposes may have to pay VAT if they are liable to pay customs duty.
Catalogue of goods and documents exempt from VAT
In Article 74(1) of the VAT Act, the legislator has provided an extensive catalogue of goods and documents whose import is exempt from VAT. The catalogue mainly covers documents and items used in public, educational and cultural activities and in international economic relations.
Main categories of exemptions:
- Documents sent free of charge to public authorities
- Publications of foreign governments and international organisations
- Election documents and election-related materials
- Items intended as evidence in court proceedings
- Specimen signatures and printed circulars for public services
- Official publications for the National Bank of Poland
- Documents related to securities
- Recorded information media sent free of charge
The exemption covers documents sent free of charge to public authorities, which is intended to make international cooperation in public administration easier. This concerns official correspondence, legal documents, reports and other materials necessary for the functioning of state bodies.
Publications of foreign governments and publications of international organisations intended for free distribution are exempt from VAT on import. The exemption is intended to make the exchange of information between states and international organisations easier
The catalogue of exemptions also covers election documents, in particular ballot papers and electoral lists in elections organised by bodies based in a third country. This exemption is especially important for ensuring that democratic processes run properly.
The exemption also applies to items intended to serve as evidence or for similar purposes before courts or other public authorities. This includes procedural documents, expert reports, expert opinions and other evidence needed in court and administrative proceedings.
Exemptions for financial and business institutions
The catalogue of exemptions also covers documents related to the activities of financial and business institutions. Official publications intended for the National Bank of Poland are exempt from VAT on import, which is intended to make it easier for the bank to perform its functions as the central bank.
| Category of documents | Conditions for exemption | Examples of use |
|---|---|---|
| National Bank of Poland documents | Official publications | International reports, BIS publications |
| Securities | For holders/subscribers | Prospectuses, company reports |
| Information media | Sent free of charge | Microfilms, recordings, electronic data |
| Business documents | International meetings | Conference materials, documentation |
| Technical plans | Orders/competitions | Drawings, specifications, project descriptions |
The exemption also covers reports, annual activity reports, information leaflets, prospectuses, subscription forms and other documents of companies based in a third country that are intended for holders or subscribers of securities issued by those companies.
Recorded information media, such as punched cards, sound recordings and microfilms, are exempt from VAT on import if they are sent free of charge to the recipient and the exemption does not distort competition
A special category consists of documents related to international business meetings. Files, archive documentation, forms and other documents to be used at international meetings, conferences or congresses, as well as reports on these events, are covered by the VAT exemption.
Educational and transport documents
The catalogue of exemptions covers a wide range of documents related to educational and transport activities. Documents to be used in examinations organised in Poland by institutions based outside the European Union are exempt from VAT on import.
Transport documents covered by the exemption:
- Forms used as official documents in international vehicle traffic
- Documents in the transport of goods under international agreements
- Tickets and documents sent by transport companies
- Materials for travel agencies from hotel companies in third countries
- Bills of lading, consignment notes and other commercial documents that have already been used
- Official printed forms and forms conforming to international models, sent by associations from third countries
The exemption also covers forms intended for use as official documents in international vehicle traffic or in the transport of goods carried out under international agreements. This exemption is essential for international transport to run smoothly.
Forms, labels, tickets and similar documents sent by transport or hotel companies from third countries to travel agencies in Poland are exempt from VAT on import. The exemption makes cooperation in the tourism sector easier
A special category consists of forms, tickets, bills of lading, consignment notes and other commercial or official documents that have already been used in business. The exemption for these documents follows from the fact that they have lost their original commercial value.
Exemptions for the media and cultural institutions
The catalogue of exemptions also covers materials intended for the media and cultural institutions. Photographs, slides and stereotype mats for photographs, including those with captions, sent to press agencies or newspaper and magazine publishers are exempt from VAT on import.
The exemption also applies to goods produced by the United Nations or one of its specialised agencies, regardless of the purpose for which they are to be used. These goods are listed in Annex 7 to the VAT Act.
Collectors' items and works of art of an educational, scientific or cultural nature imported by museums, galleries and other institutions are exempt from VAT if they are not intended for sale and are brought in free of charge or, if for a fee, are not supplied by a taxable person (Article 74(1) point 18)
A special category consists of official publications issued under the authority of the exporting country, international institutions, regional or local authorities and bodies. The exemption also covers printed matter distributed in connection with elections to the European Parliament or national elections, produced by foreign political organisations.
The publications and printed matter under this point (Article 74(1) point 19) are exempt on import into Poland to the extent that they were subject to tax in the exporting country and were not covered by a tax refund.
The concept of commercial value as a condition for the exemption
The key condition for applying the exemption under Article 74(1) of the VAT Act is that the imported goods and documents have no commercial value. Under Article 74(2) of the VAT Act, the exemption applies only if the listed goods and documents have no commercial value.
Criteria for assessing commercial value:
- Whether the goods can be sold on the market
- Potential use in business activity
- The occasional nature of the consignment
- Intended for the recipient's own use
- No commercial intent on the part of the sender or recipient
Although the VAT Act does not define "commercial value", in practice it means goods that cannot be sold or traded. Goods with no commercial value are those that, because of their nature, purpose or condition, are not suitable for commercial use.
Commercial value means the possibility of using goods in trade. Goods with no commercial value are those that, because of their nature or purpose, cannot be sold
The definition in Article 1 point 21 of Commission Delegated Regulation (EU) 2015/2446, which defines "goods of a non-commercial nature", can help in interpreting this concept. According to that regulation, non-commercial goods are above all goods contained in consignments sent by private individuals to other private individuals.
For a consignment to be considered non-commercial, it must meet the following conditions:
- Be of an occasional nature
- Contain goods exclusively for the personal use of the recipient or their family
- The goods must not, by their nature or quantity, be intended for commercial purposes
- The consignment must be sent without payment of any kind
Goods in travellers' personal luggage may be considered non-commercial if they are of an occasional nature and consist exclusively of goods for the personal use of the travellers or their families, or of presents, and their nature and quantity do not indicate commercial purposes
Practical application of the exemption
The VAT exemption on importing goods with no commercial value applies in practice in many situations. Most often it concerns the import of official documents, educational materials, scientific publications and items of a cultural or artistic nature.
Procedure for applying the exemption:
- Identify the goods in the catalogue of exemptions in Article 74(1) of the VAT Act
- Confirm that the imported items have no commercial value
- Prepare suitable documentation confirming the exemption
- Work with the customs authorities during customs clearance
- Archive the documents for possible audits
To use the exemption, the importer must show that the imported goods or documents are listed in the catalogue in Article 74(1) of the VAT Act and that they have no commercial value. This means presenting suitable documentation confirming the nature and purpose of the imported items.
A university imports teaching materials from the USA in the form of information brochures intended for free distribution to students at a scientific conference. These materials are not intended for sale and are purely educational, which allows the VAT exemption on import to be applied.
Applying the exemption requires cooperation with the customs authorities, which verify that the conditions for the exemption are met. The importer should present documents confirming that the imported goods fall within the catalogue of exemptions and have no commercial value.
A museum imports reproductions of works of art from Switzerland to be used for educational purposes at thematic exhibitions. The reproductions are provided free of charge by a cultural institution and have no commercial value, which allows the exemption to be applied.
Pay particular attention to the documentation confirming the lack of commercial value. This may be the sender's statement that the consignment is free of charge, documents confirming the purpose of the goods or other evidence showing that the import is not commercial.
Consequences of applying the exemption incorrectly
Applying the VAT exemption on importing goods with no commercial value incorrectly may have serious tax consequences. The customs and tax authorities may challenge the right to the exemption if they find that the imported goods have commercial value or do not fall within the catalogue of exemptions.
Potential consequences:
- Having to pay VAT with default interest
- Tax penalties for applying the rules incorrectly
- A customs and fiscal audit (kontrola celno-skarbowa)
- The right to the exemption being challenged in future imports
- Possible proceedings for a fiscal petty offence
If the exemption is challenged, the importer will have to pay VAT with default interest. In addition, tax penalties may be imposed for applying the tax rules incorrectly.
Audits by the customs authorities may show that the imported goods have commercial value despite the importer's declaration. In that case VAT will have to be paid with interest and any penalties
Applying the exemption in borderline cases, where it is hard to say clearly whether the goods have commercial value, is particularly risky. Importers should be especially careful and, if in doubt, consult tax advisers or the customs authorities.
The audit authorities pay particular attention to cases where the imported goods could be used in the importer's business. Even if the goods formally fall within the catalogue of exemptions, their actual use for commercial purposes may lead to the exemption being challenged.
