New EU VAT Cross Border Rulings procedure – explanations provided by the Polish National Tax Administration

Background information on the EU VAT CBR (Cross-Border Rulings) project

The EU VAT CBR is a project which was initiated in the framework of the EU VAT Forum group and which is currently being implemented by 18 EU Member States (Poland, Belgium, Denmark, Ireland, Estonia, Spain, France, Italy, Cyprus, Latvia, Lithuania, Malta, Hungary, the Netherlands, Portugal, Slovenia, Finland and Sweden). The purpose of the EU VAT CBR is to meet the expectations of VAT taxpayers who, when planning their economic activities, would like to be certain about the taxation of the same transaction in different EU Member States. The EU VAT CBR is therefore a tool to prevent VAT disputes and aims at ensuring fiscal neutrality. [1]

Cross Border Rulings findings

EU VAT CBR (Cross-Border Rulings) is a new form of cooperation between the Polish Head of the National Tax Administration and VAT taxpayers. Cooperation with the administration of another EU Member State with a view to agreeing on an interpretation of VAT law is carried out at the request of the taxpayer. In connection with Poland’s accession to the EU VAT CBR project implemented by some EU Member States, the applicants are entitled to apply to the Polish National Tax Administration with a Preliminary CBR Application, and after its acceptance by the Polish National Tax Administration, with the already applicable CBR Application. [2] The intention of the CBR proposal is to agree, at the request of a taxpayer, an interpretation of VAT law in cross-border cases with the tax administration of an EU Member State that has joined the EU VAT CBR. [3] There is no fee to submit a Preliminary CBR Application and a CBR Application.

Preliminary CBR Application

The Preliminary CBR application should be addressed to the mailbox address given: CBR.poland@mf.gov.pl. Preliminary application of the CBR should be formulated in Polish. In order for the National Tax Administration to process the Preliminary CBR Application, the following formal requirements must be met jointly:

1. the case is of cross-border nature
2. relates to planned transactions that have not yet been executed
3. The Polish National Tax Administration finds the case to be very complicated
4. the request concerns arrangements with the tax administration of an EU Member State which has acceded to the EU VAT CBR
5. was signed by the taxable person or an authorised person
6. as well as the applicant has agreed inter alia to: the national tax administration’s handling of the EU VAT CBR case, conducting arrangements by the Polish National Tax Administration with the tax administration of the EU Member State indicated in the application. [4]

In case when the Preliminary CBR application doesn’t meet the formal requirements, the Polish National Tax Administration will inform the applicant about it by sending a proper notification to the e-mail address indicated in the Preliminary CBR application. Acceptance of the Preliminary CBR Application opens the possibility to submit a CBR Application.

CBR application

The CBR application shall be sent to the mailbox address: CBR.poland@mf.gov.pl. The CBR application should be formulated in Polish and English and, where required by the tax administration of the EU Member State with which the applicant requests reconciliation, also in the language required by that State. In order for the Polish National Tax Administration to proceed with the CBR Application, the following formal requirements must be met jointly:

1. the case is of cross-border nature
2. relates to planned transactions that have not yet been executed
3. The Polish National Tax Administration has accepted the CBR’s preliminary application
4. the request concerns arrangements with the tax administration of the EU Member State which has acceded to the EU VAT CBR
5. was signed by the taxable person or an authorised person
6. as well as the applicant has agreed inter alia to: the national tax administration’s handling of the EU VAT CBR case, conducting arrangements by the Polish National Tax Administration with the tax administration of the EU Member State indicated in the application. [5]

In the case of a formal deficiency, the procedure is identical to that for a formal deficiency in the Preliminary CBR application. The Polish National Tax Administration shall prepare its position on the matter and consult it with the tax administration of the EU Member State indicated in the CBR Request and inform the applicant about the agreed common position (or disagreement) under the EU VAT CBR. If the position is agreed, the applicant will be informed about the content of the agreed EU VAT CBR interpretation.

KIELTYKA GLADKOWSKI assists international clients in their cross border tax cases in all procedures before the Polish tax authorities, including assistance in EU VAT CBR procedure.

---

[1] https://www.podatki.gov.pl/vat/pilotaz-vat-ue-cbr/informacje-ogolne-pilotaz-vat-ue-cbr/

[2] https://www.gov.pl/web/kas/pilotaz-vat-ue-cbr-cross-border-rulings

[3] https://ec.europa.eu/taxation_customs/news/vat-list-eu-vat-cross-border-rulings-cbr-available-line-has-been-updated-2016-02-16_pl

[4] https://www.podatki.gov.pl/vat/pilotaz-vat-ue-cbr/wstepny-wniosek-cbr/

[5] https://www.podatki.gov.pl/vat/pilotaz-vat-ue-cbr/wniosek-cbr/