VAT Tax

VAT tax in air transport market is governed by the Act of 11 March 2004 on tax on goods and services (Journal of Laws of 2011 No. 177, item. 1054, as amended. D.), Hereinafter referred to as Act VAT. Most important for the air transport market amendments to the VAT Act came into force:

  • 1 April 2011, the Act of 18 March 2011 amending the Act of 11 March 2004 on tax on goods and services and the Law on Measures Act (Journal of Laws No. 64, item. 332);
  • 1 April, 2013 the Act of 7 December 2012 amending the Law on the tax on goods and services and certain other acts (Journal of Laws of 2013 No. 0, pos. 35).


Regulations Change, which came into force on 1 April 2011, amended the Article 83 of the VAT Act in the application of 0% VAT rate for the aviation industry. The Article. 83 sec. 1 point 5-8, 13, 16, 18 has been changed and added new provisions of this article like paragraph. 1a-1f. Changes made in the following paragraphs points. 1 adapt the content of the VAT Act to the provisions of Council Directive 2006/112/EC of 28 November 2006 on the common system of value added tax. According to the current VAT Act, in accordance with Community law on tax on goods and services, VAT rate of 0% is associated with doing business in the carriage by air performed primarily in international transport. The amendment to the VAT Act, which came into force on 1 April 2013, and the subsequent changes related to the provisions of Art. 83 sec. 1a, 1c and 1f, by which clarified the concept of an air carrier which operated mainly in international transport.

In accordance with the provisions of Art. 83 sec. 1 of the VAT act 0% tax rate applies to:

(...)

5) the import of aircraft and spare parts for them, and on-board equipment for air carriers operating mainly international transport;

6) the supply of air transport equipment and spare parts for them, and on-board equipment for air carriers operating mainly international transport;

7) services for the control and supervision of air traffic services to air carriers operating mainly international transport;

8) services related to take-off, landing, parking, handling of passengers and cargo, and other similar services provided to air carriers operating mainly international transport;

(...)

13) services, rent, lease, leasing or chartering of aircraft and lease, rental, leasing or chartering equipment used by the air carriers operating mainly international transport;

(...)

16) services consisting of the renovation, reconstruction or maintenance of aircraft and it equipment installed on them, used by air carriers primarily engaged in international transport;

(...)

18) the transportartion of goods for the supply of aircraft used by the air carriers operating mainly international transport;

(...)

Referring to the concept of an air carrier mainly international transport carrier is the established economic activity in the country that meets the criteria set out in Art. 83 sec. 1a of the VAT Act. According to this provision, it is a carrier of a share:

revenues from international transport in total transport volume,
realized the number of flights in international transport in total transport volume,
number of passengers or the amount of transported goods, or the amount of transported consignments in international transport in total transport
- was in the previous fiscal year at least 60%. In relation to air carriers start-ups during the year, these criteria are recognized in the forecast for the tax year.
It should be noted that the use of the 0% VAT rate is necessary for air carrier to meet all three criterias.

On the basis of data received from carriers referred to in paragraph. 1a of the VAT Act, the President of the Civil Aviation Authority draws up a list of air carriers who meet the above criteria.

With regard to the definition of an air carrier, the air carrier, according to art. 2 point. 16 of the Act of 3 July 2002 - Aviation Law (Journal of Laws of 2012, pos. 933 (with amendments) is an entity authorized to conduct air services under concession - in the case of Polish air carrier, or on the basis of the relevant part of the competent authority of a foreign state - the case of a foreign air carrier.

Polish air carriers who are on the list, will be entitled to use the 0% VAT rate for imported goods and services referred to in Art. 83 sec. 1 point 5-8, 13, 16 and 18 of the VAT Act from April 1 of the tax year to 31 March of the following fiscal year. List is published in the Official Journal of the Civil Aviation Authority.

Polish air carriers wishing to be included on the list published by the President of the CAA shall be required to submit data to the President of the CAA for ensure the compliance with the criteria of Art. 83 sec. 1a of the Act, by 20 February of the current fiscal year.

In order to standardize the way in which the information referred to in Art. 83 sec. 1d of the VAT Act, and thus to facilitate and streamline the process leading to the publication of the list of carriers which operate mainly international transport, The CAA has prepared statement template that can be used to verify compliance with the criteria referred to in Art. 83 sec. 1a of the Act. Template statement is given below. In doing so, the statement must take into account all the operations carried out by the airline, not only in traffic to / from Polish. Furthermore, the statement shall be signed by the person / persons authorized to represent the entity.

The model carriers declaration

docdownload43 KB

For air carriers operating mainly international transport services referred to in paragraph. 1 point 5-8, 13, 16 and 18, also refers to non-resident carriers established in the country:

  • authorized to carry out international transport on the basis of the relevant part of the competent authority of the State of establishment of the carrier, in particular license or Air Operator's Certificate, or
  • inscribed on the list of air carriers operating mainly international transport services announced by the competent authority of the country of residence of the carrier.

 

According to the above listing the record of carrier having no established business in Poland in the list published by the President of the CAA is optional. In order to benefit from the 0% rate of VAT on imported goods and services listed in Art. 83 sec. 1 point 5-8, 13, 16 and 18 of the VAT Act the carrier may provide directly to its counterparties document referred to in Art. 83 sec. 1f of the VAT Act, which is the certificate that air carrier is performing flights mainly in international transport. Thus, the lack of a foreign carrier's account on the list published by the President does not rule out the possibility of using the 0% VAT rate for services referred to in Art. 83 sec. 1 of the VAT Act.

Summing from 1 April 2013 to obtain 0% VAT tax rate of imports, supplies and services referred to in Art. 83 sec. 1 point 5-8, 13, 16 and 18 of the VAT Act:

Polish carriers are entered in the above list published by the President of the Civil Aviation Authority, upon proof that the conditions referred to above (Article 83 par. 1a of the VAT Act) within the period specified by Article. 83 sec. 1d of the VAT Act;
foreign carriers with non-established business in Poland to send their partners a document confirming that the State of establishment are considered to be mainly engaged in international transport (national list, the corresponding document valid for international travel).

In case of doubt as to the application and interpretation of the provisions of Art. 83 of the VAT Act, please direct any questions to the Ministry of Finance

Below are the currently valid (01.04.2019-31.03.2020), published by the President in the Official Journal of the Civil Aviation Authority, the list of air carriers operating mainly international transport services:

Decree No. 5 of the President of the Civil Aviation Authority of 26 March 2019 on the publication of a list of air carriers operating mainly international transport.

The list of air carriers operating mainly international transport, which was in force in previous years, published by the President in the Official Journal of the CAA:

Decree No. 5 of the President of the Civil Aviation Authority of 29 March 2018 on the publication of a list of air carriers operating mainly international transport.

Decree No. 9 of the President of the Civil Aviation Authority of 30 April 2018 r. on the complete list of air carriers operating mainly international transport.

Decree No. 1 of the President of the Civil Aviation Authority of 9 March 2017 on the publication of a list air carriers operating mainly internalional transport.

Decree No. 4 of the President of the Civil Aviation Authority of 22 March 2016 on the publication of a list of air carriers operating mainly international transport.

Decree No. 3 of the President of the Civil Aviation Authority of 12 March 2015 on the publication of a list of air carriers operating mainly international transport.

Decree No. 2 of the President of the Civil Aviation Authority of 11 March 2014 on the publication of a list of air carriers operating mainly international transport.

Decree No. 8 of the President of the Civil Aviation Authority for the period from 26 March 2013 to 31 March 2014.

Decree No. 7 of the President of the Civil Aviation Authority on 30 March 2012. on the publication of a list of air carriers operating mainly international transport.

Decree No. 8 of the President of the Civil Aviation Authority on 30 March 2012. the complete list of air carriers operating mainly international transport.

Decree No. 11 of the President of the Civil Aviation Authority on 31 May 2012 on the complete list of air carriers operating mainly international transport.

Contact


Financial Supervison Unit (LER-3)

Tel. +48 22 520 73 79

Fax. +48 22 520 73 49

email: ler@ulc.gov.pl

 

 

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