Sales, Use and International Tax Activity Update - June 2009

Taxing Thievery in Poland

The Administrative Court has ruled on the proper VAT treatment of stolen goods in an intra-Community supply of goods. The precondition for recognizing a transaction as an intra-Community supply of goods subject to the 0% rate is proving that the right to dispose of the goods as owner has been transferred to the purchaser. The goods must leave Poland and be delivered to a destination in another Member State.

Documents such as police records can be used to confirm receipt of the goods by the purchaser and that a theft took place. The condition of transferring the right to dispose of property as owner to the purchaser will be met when the incoterms place the risk for loss of the goods on the purchaser from the start of transport (time of theft).

---

Subscribe to CyberTax News and receive the latest indirect tax news, including rate changes, rule updates, compliance issues, and more, delivered directly to your email.

Email Address

e.