Mandatory partner verification for indirect customs representatives

According to the new regulatory conditions, the assignment of the right to deduct import VAT can only occur if certain conditions are met. The change establishes new and stricter conditions for both the importer and the indirect customs representative. Below we highlight the most significant changes.

I.      Conditions for the importers

1st condition - Frequency of VAT return

The importer fulfils their VAT return on a monthly basis and communicates this fact - in a written statement - to the indirect customs representative.

2nd condition - Taxpayer classification

a)    Risky taxpayer classification

According to the changes, if the importer is classified as a risky taxpayer, then the right to deduct import VAT cannot be assigned to the indirect customs representative.

b)    Reliable taxpayer classification

If the importer is classified as a reliable taxpayer, then the right to deduct import VAT can be assigned.

One of the conditions for becoming a reliable taxpayer is continuous operation for 3 years, therefore a newly established economic entity (importer) cannot be a reliable taxpayer, and thus the conditions for the assignment of the right to deduct VAT cannot be met in their case.

c)    Normal taxpayer classification

If the importer is classified as neither a risky nor a reliable taxpayer, then the right to deduct VAT can only be assigned if no tax risk is identified regarding the importer during the partner (risk) verification conducted regularly by the indirect customs representative.

The methodology of the partner verification process is not regulated by law, but a tax authority guideline provides guidance on fulfilling the obligation (solely as a recommendation). According to the recommendations of the tax authority, partner verification require the use of publicly accessible data, public databases of the tax authority, and data requested from the importer.

For the partner verification, the indirect customs representative can also request certain non-publicly accessible data from the tax authority regarding the importer. This can be done electronically through the tax authority Client Portal. The data that can be obtained directly from the tax authority is considered confidential tax information, therefore the indirect customs representative must obtain a consent statement from the importer.

It is important to note that the partner verification process and its methodology are the responsibility of the indirect customs representative, and based on this, they must determine its scope and depth.

However, the guidance published by the tax authority also confirms that the data that can only be requested from the tax authority does not, by itself, provide a comprehensive picture of the potential tax risks regarding the importer, so a broader inspection is recommended for indirect customs representatives.

II.    Conditions for indirect customs representatives

1st condition - Reliable taxpayer classification

The indirect customs representative must be classified as a reliable taxpayer.

2nd condition - Administrative tasks

The indirect customs representative is required to submit data on the results of the partner verification to the tax authority using the KVKPELL form on the ONYA interface. Additionally, supplementary declarations will be also needed as part of their VAT return.