Home

Global

Contact

de|en|pl

50 countries – 116 offices – around 6,000 colleagues – 1 firm |

Worldwide

We use cookies to personalise the website and offer you the greatest added value. They are, among other purposes, used to analyse visitor usage in order to improve the website for you. By using this website, you agree to their use. Further information can be found in our data privacy statement.

No removal of goods from Poland means no ICS – SAC's judgment

by Maria Wośkowiak-Adamczyk
10 April 2025

On 13 March 2025, the Supreme Administrative Court (SAC) issued a judgment (file no. I FSK 2148/21) on the VAT treatment of a supply of goods to an EU customer when goods are not physically removed from Poland.

What was the case about?

The case involved a company that applied for an advance tax ruling on a value added tax issue. In the course of its business, the company makes intra-Community supplies of goods (ICS) to customers from other EU countries. Due to the specific nature of the goods and the buyer's organisation of transport, it sometimes happens that the invoiced items are not immediately sent to customers but instead are stored in the company's warehouse for some time. The sale is organised this way due to the specific nature of the products offered by the company, as well as the requirements and expectations of customers to which the company must adhere.

Accordingly, the company accounts for value added tax as follows:

If goods are not removed to another EU country in the month of the invoice or there are no documents confirming removal, sales are not reported.
In the following month, if documents confirming removal are available, the company discloses an ICS and zero-rates it.
If there are no documents confirming removal in the following month, it discloses sales at 23%. On receipt of confirmation of delivery, the company amends its tax return.

The Head of the National Revenue Information Service (NRIS) disagreed with the company. He held that the transactions under review did not meet the requirements of an ICS unless the goods were actually removed. Thus, where there is no physical removal of goods, the place of supply of the goods is the company's warehouse in Poland. Such transactions are therefore domestic supplies and should be taxed at 23%. This means that a transaction can only be considered as an ICS when the goods are removed from Poland and the company obtains documents confirming the removal.

The company appealed against that tax ruling but lost in both court instances – the Provincial Administrative Court (PAC) and the Supreme Administrative Court (SAC).

What does it mean for traders?

For taxable persons, the SAC's judgment means that if the goods are not physically moved to another EU country in the month in which the invoice is issued, the transaction does not qualify as an intra-Community supply of goods (ICS). In this situation, the taxable person must report sales at the domestic VAT rate of 23%. Only after the goods have actually been removed from Poland and the relevant documents confirming the removal are available, may the taxable person amend its VAT return to apply the 0% rate.

In practice, this means that traders must first make sure when goods are actually removed – whether in the month of the invoice or in the following month. This is because, according to the SAC's judgment, the transaction does not qualify as an ICS without the physical removal of the goods. Such a transaction comes as domestic sales for VAT purposes. Of course, obtaining the relevant documents confirming removal entitles the trader to classify the transaction as an ICS and to zero-rate it.

If you have any doubts about how to correctly account for your ICS, do not hesitate to contact us. We will be happy to help you amend your VAT return and provide professional support in this respect.