How to Settle VAT on Import

The VAT taxable base on import

The taxable base for imports is the customs value plus the duty due and, for excise goods, excise duty (Article 30b(1) of the VAT Act). To it you add additional costs — commission, packing, transport and insurance — if not already included in the customs value, incurred up to the first destination in Poland (paragraph 4). The standard rate is 23%. VAT is therefore not calculated on the invoice price alone; see is VAT calculated on the invoice value and the UK-to-Poland duty and VAT calculator.

Two ways to settle import VAT

Payment at clearance. As standard, import VAT is paid to the customs and tax office account on the basis of the customs declaration.

Settlement in the return (Article 33a). A taxpayer registered as an active VAT payer can settle the import output tax in the return for the period in which the tax obligation arose. Conditions include certificates of no arrears (or declarations of the same content) issued no earlier than 6 months before the import, confirmation of active VAT registration, and customs declarations made through a direct or indirect representative (Article 33a(2)); this condition does not apply, among others, to a business with AEO status or with an authorisation for a simplification under Article 166 or 182 UCC (paragraph 2d). This helps cash flow because no payment is needed at clearance. In the UK, postponed VAT accounting has a similar effect and is covered separately.

Minimum data set for the declaration

The minimum set includes: the importer's EORI number, the CN/HS tariff code, the customs value of the goods, the country of origin, and transport documents confirming the border crossing.

Full customs handling on the Poland–UK route is provided by a UK customs agency.

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Deducting import VAT

The input tax on imports is the tax shown in the customs document received or, where Article 33a is used, the amount of output tax (Article 86(2)(2)). Where the tax comes from a customs document, the right to deduct arises no earlier than in the return for the period in which the taxpayer received the customs document (Article 86(10b)(1)). Where the goods are destined for another EU country, an exemption under procedure 42 may be possible — see Regime 42 explained.

The most common risk points

The most frequent errors are incorrect tariff classification, an understated customs value, a missing document confirming the preferential origin of the goods, and inconsistent data between the invoice and the CMR. Errors in a declaration are corrected as described in amending or invalidating a customs declaration.

Record-keeping and working with an agency

VAT records and documents are kept until the tax liability becomes time-barred (Article 112 of the VAT Act), and EU customs documents for at least 3 years (Article 51 UCC). Evidence of due diligence includes correspondence with the customs agent, confirmations of filed declarations and documents supporting the customs value. For a specific clearance get in touch; for how to work with an agency see how to choose a customs agency.

Summary

Import VAT is calculated on the customs value plus duty (and additional costs), paid at clearance or — if the Article 33a conditions are met — settled in the return, and deducted on the basis of the customs document. Decide on the method before the first clearance.

Frequently asked questions