E-commerce | December 2018

1. Taxation of vouchers in VAT – changes from 1^st January 2019
2. The mini one stop shop – changes from 1st January 2019
3. Announcement of changes in regulations related to the sale of goods at a distance (e-commerce)
4. Sale of cryptocurrencies – unified taxation rules from 1^st January 2019

1. Taxation of vouchers in VAT – changes from 1^st January 2019

Starting from 1^st  January 2019 new regulations in Polish VAT Act, which introduce rules related to VAT taxation of vouchers, will enter into force. According to current provision payable spending of vouchers is not subject to VAT. From the January, the 1^st  two types of vouchers will be introduced for VAT purposes:

• single-purpose voucher (SPV voucher) – issued when the place of delivery of the goods or services and VAT due for such goods or services are known at the time of issue of the voucher),
• multi-purpose voucher (MPV voucher) – voucher being a a gift card for goods or services, which are subject to various VAT rates).

Depending on the type of voucher, the VAT obligation will arise when the voucher is issued/ transferred or when the voucher is used.

In case of SPV:

• issuance and each transfer of voucher is to be treated as supply of goods or provision of services, which results in necessity of calculation and payment VAT due (as if the goods were actually delivered, or the services were carried out).
• the actual transfer of goods or the actual provision of services to the consumer will not be subject to taxation with VAT (as already taxed earlier)
• distributors who sell SPVs on their own behalf and on their own account have an obligation to pay VAT in case of sale of SPV.

In case of MPV:

• issuance and each transfer of voucher (whether to consumer or to distributor) is not subject to VAT taxation,
• only actual transfer of goods or actual provision of services in exchange for a voucher is subject to VAT.

1. The mini one stop shop (MOSS) – changes from 1^st January 2019

From 1^st  January 2019 new regulations will be applied in Polish VAT Act in terms of MOSS (the Mini One Stop Shop). The purpose of the amendment is to reduce costs and nuisances related to the VAT settlement of electronic services provided to the other consumers from EU Member States. The change was introduced as part of the implementation of the provisions of Council Directive (EU) 2016/1065.

Main changes:

• introduction of the threshold up to which the taxpayers providing electronic services to EU consumers (non-Polish consumers) will be able to settle VAT for such services according to the rules applicable to domestic transactions: up to 000 euro (42.000 Polish Zloty) of the annual net value of electronic services provided to EU consumers (non-Polish consumers),
• taxpayers will be allowed to settle VAT in the Member States of recipients of their services despite not exceeding the threshold, if it is their wish to choose such way taxation;
• after exceeding the threshold there will be necessity to settle electronic services in the Member State of recipient of the services (instead of registration in the Member State there is possibility to use the MOSS procedure),
• Taxpayers with seats outside of EU, but registered for VAT purposes in one or more Member States will be allowed to benefit from settlements in mini one stop shop (MOSS) – so far it was possible for taxpayers from EU only.

1. Announcement of changes in regulations related to the sale of goods at a distance (e-commerce)

Report prepared by Team for sealing the VAT collection system will be announced in December 2018. Report contains recommendations of solutions in terms of effective sealing VAT collection from sale of goods at a distance. Poland has accelerated works on the implementation of the Council Directive (EU) 2017/2455 (deadline for implementation 1^st January 2021) after finding notorious avoidance of VAT taxation and payment of customs duties on purchases made through foreign (mainly Asian) e-commerce platforms.

The current Polish VAT Act provides VAT exemption in import for parcels worth up to 22 EUR and gifts worth up to 45 EUR. The Minister of Finance pointed out, that those VAT exemption on import applies only to free of charge deliveries between individuals and shall not apply to goods imported by dispatch order. Currently there is no regulations enabling effective enforcement of tax payment on import, thus it is crucial to change tax regulations in this regard.

The expected solution will be related to planned amendments proposed in the Directive:

• introduction of new VAT procedure: intra-Community distance sales of goods and distance sale of goods imported from the territories of third countries,
• liquidation of obligation of issuing invoices in procedure of intra-Community distance sales of goods,
• liquidation of the VAT exemption for the import of goods in small consignments of negligible value (EUR 22).

1. Sale of cryptocurrencies – unified CIT taxation rules from 1^st January 2019

From 1^st January 2019 according to the new regulations related to cryptocurrency turnover will enter into force. According to this provisions revenues from trading of cryptocurrencies will be included in income from capital gains (CIT).

In terms of taxation:

• revenues from trading of cryptocurrencies will be included in income from capital gains,
• revenues will not be combined with other income from capital gains,
• no possibility to deduct tax losses from cryptocurrencies turnover from other income of the taxpayer,
• tax rate will amount to 19%.

Subject to the taxation will be:

• sale of virtual currencies on the stock exchange, currency exchange or free market (revenues from the exchange of cryptocurrencies into the legal tender).
• digital payment through virtual currency for goods, services and property rights that are not a virtual currency, as well as regulating through such currency other liabilities.

Subject to the taxation will be an income, which means the possibility of treatment of expenses related to the cryptocurrencies turnover as the tax deductible costs, but such expenses have to be properly documented and related directly to the purchase and sale of cryptocurrencies.