Poczta Polska is adapting to new EU VAT regulations for e-commerce
Tomorrow, July 1st, an amendment to the VAT Act signed by President Andrzej Duda comes into force, implementing the so-called VAT e-commerce package in Poland. The new law aims, among other things, to standardize procedures and rules across the European Union. From a consumer perspective, a particularly significant change is the abolition of the €22 threshold, below which – in most EU countries – postal items containing goods purchased in third countries are currently exempt from VAT. The new regulations are intended to reduce the unfair competition currently posed for European businesses by e-commerce operators from non-EU countries, who deliver goods to member state markets largely without paying customs duties and VAT.
The entry into force of the new regulations also imposes new customs and tax obligations on postal operators in EU countries. Starting in July, operators, including Poczta Polska, will clear parcels worth up to €150, which are duty-free but subject to VAT under modified rules. In Poland, such postal shipments will be reported to customs authorities by Poczta Polska in the AIS/e-COMMERCE system. The changes being introduced in Poland will also apply to higher-value shipments. Starting July 1, 2021, Poczta Polska will also electronically report parcels worth €150-€1,000 to the AIS/e-COMMERCE system, which are subject not only to VAT but also to customs duties.
Poczta Polska will offer recipients a comprehensive service related to customs and tax clearance of goods . The simplest option will require no action from the recipient. Poczta Polska will perform all necessary procedures – collecting customs and tax duties at the rate calculated by the National Revenue Administration upon delivery, as well as the postal fee for filing a customs declaration.
" Adjusting to the new EU regulations related to the so-called VAT package for e-commerce is a significant organizational and IT challenge. The implemented solutions impose new obligations on the Polish Post Office related to the electronic reporting of postal items from outside the European Union to customs authorities and then collecting the appropriate tax or customs and tax liabilities. This is an extensive project, on which we have been working very intensively in cooperation with the National Revenue Administration, " says Tomasz Zdzikot, President of Poczta Polska SA.
Once the new regulations come into force, the process of handling a shipment containing goods will be as follows:
- A customer in Poland orders goods from a country outside the EU;
- Once the shipment arrives in Poland, a Post Office employee makes an electronic customs declaration on behalf of the recipient, which is then sent to the AIS/e-COMMERCE system operated by the National Tax Administration;
- Based on the data contained in the notification, the National Revenue Administration calculates and provides the Post Office with information on the amounts of tax or customs and tax liabilities that the Post Office is obliged to collect and pay to the National Revenue Administration;
- Tax or customs duties, together with the postal fee specified by the Post Office, are collected upon delivery of the shipment by a Post Office employee or at a post office;
- The final step of the operation is the settlement of the tax or customs and tax liabilities collected by postal workers with the National Tax Administration.
If the contents of the shipment do not require additional inspection by customs officers, the National Revenue Administration (KAS) will release the goods for free circulation, and Poczta Polska will release the shipment for delivery to the recipient. It's worth noting that the same procedure will apply to letters containing goods and parcels.
" Polish customers ordering goods from outside the EU need fast deliveries and simple customs and tax procedures. We strive to meet the expectations of companies and customers involved in cross-border trade, " emphasizes Wiesław Włodek, Vice President of Poczta Polska SA, responsible for the company's implementation of the project.
The VAT e-commerce package introduces solutions whereby e-commerce sellers/platforms will be able to calculate and collect VAT directly upon purchase of goods from the customer, meaning it will be added to the price of the goods, just as it would be when purchasing goods on Polish platforms. In this case, the Polish Post Office will submit a customs declaration for the shipment, which will exclude VAT, so the customer will only pay the postage upon delivery. This applies to shipments valued up to €150.
The new regulations change Poczta Polska's role in customs processes. Currently, the company presents shipments to customs authorities. From July 1st of this year, it will become the entity making customs declarations, acting on its own behalf on behalf of the recipient of the shipment, i.e., as a so-called indirect representative. From August 2nd of this year, Poczta Polska will also be required to transmit information about shipments pre-notified by senders to the EU customs system ICS2, which analyzes freight traffic for security purposes. Only a positive decision from this system will allow the shipment to be loaded onto an aircraft in the country of origin.
Post Office Preparations
For customs and tax settlements, the Polish Post Office has hired additional staff through internal and external recruitment. The campaign, entitled "Work with us and develop in customs services," targeted individuals who lack special authorizations or qualifications, but who will be prepared for the positions through specialized training. Recruitment efforts are also underway – several hundred people are expected to be employed to handle the broad range of activities related to this project.
IT systems are also a key element of the preparations. Among other things, it was necessary to integrate the Post Office's internal systems with those of external partners, as well as build a proprietary IT system from scratch, enabling customs declarations. A decision was also made to modernize, expand, and adapt workstations in seven locations where postal workers will perform tasks related to the customs and tax project. The investments concerned sorting plants in Warsaw, Zabrze, Pruszcz Gdański, Lublin, Szczecin, and post offices in Poznań and Przemyśl.
More information about Poczta Polska's services related to customs and tax clearance of goods, as well as answers to frequently asked questions, are available here.