What is a consignment warehouse and where is it used?
A consignment warehouse, otherwise known as a depository, is an object belonging to a specific entity in which the goods belonging to the supplier are stored. The most distinctive feature of goods stored in a consignment warehouse is that they become the property of the buyer only when they are taken from the warehouse.
The consignment warehouse is usually run by production companies that purchase various types of raw materials, components and elements used in technological processes in production plants. Such a consignment warehouse in Poland accepts all goods that are transported by international suppliers. The materials imported to the warehouse are still the property of the supplier, while the change of ownership changes from the supplier to the producer only in the case of their production needs.
Consignment warehouses are used primarily in industries related to processing, benefiting from international trade. They reach for various areas of the EU for raw materials and need a large storage space for storing materials that await their turn to be used during production. Producers are particularly interested in maintaining timeliness and availability of components of the selected product. All in order not to delay production, but also not to spend the cost of storing huge amounts of raw material for long periods. In consignment warehouses, mainly plastics, materials, semi-finished products, composite parts or component supplies are always delivered from abroad.
What office should you notify about the intention to open a consignment warehouse?
A consignment warehouse can be carried by anyone, but this requires formalities and official consent. A Polish taxpayer wishing to run a consignment warehouse is obliged to report to the head of the competent tax office and inform him about the commencement of the process of running a consignment warehouse. The application should be submitted in the form of a statement. The document itself does not have one specific pattern that should be applied, but the regulations specify the necessary data, among others company name, registered office or registered office, NIP and full address of the warehouse. After obtaining a permit for running a warehouse, the taxpayer – an entrepreneur is obliged to keep an accurate record of goods entering the warehouse.
Settlements between companies, VAT and other obligations.
The activity of a foreign supplier is invisible for VAT tax settlements in Poland. The supplier is not subject to registration for VAT purposes, and does not have to be recognized for such intra-Community acquisition of goods (WNT). He also has no obligation to check the domestic delivery when the buyer receives the goods from the warehouse. The tax settlement takes place only at the buyer when the goods are taken from the warehouse as WNT. The entire process of mutual cooperation between the Polish producer and the EU supplier can be simplified provided that specific requirements for each party are met. These requirements are as follows:
– Materials sent to the buyer by the supplier must be used for further production or service processes, excluding the commercial sector.
– The supplier must be a VAT payer registered in another EU country with the condition that he can not also be a taxpayer of value added VAT in Poland, both active and dismissed.
– The supplier is exempt from the obligation to register in the Polish State as an active VAT payer, there is no obligation to settle this tax in our country within the framework of WNT.
In addition, in the case of a producer:
– It is obliged to pay additional VAT for materials used in the technological process.
However, the great benefit and the main reason for setting up consignment warehouses in Poland is that since the establishment of such a warehouse, the manufacturer will not have to worry about any delays in delivery and deviations from the production schedule, as it will have almost guaranteed a permanent, replenished supply of necessary materials.
Lacks in the warehouse or destruction of stored goods.
At the time of non-compliance, ie the lack of goods stored in the consignment warehouse or their complete destruction, the warehouse operator is obliged to notify the head of the tax office in writing of the changes to the warehouse within 30 days from the irregularity. In the event that it is not possible to determine the day on which the goods were found missing or destroyed, it is considered that the collection took place on the day of the incident. Also in the case when a product stored in a consignment warehouse has been used before a specific consignment, it is considered that the fact of collection took place on the day of use of the good.
What should a well-managed warehouse characterize?
The consignment warehouse should be located in a specific, separate building. Part of the separated area should be individual, intended solely for the consignment warehouse. The warehouse must operate in accordance with its intended purpose, i.e. storage of goods from EU countries, and act in accordance with national and Community law. It is mandatory to keep an accurate and constant record of the goods. It is extremely important to put in the documentation information about the specific date of entering materials into the warehouse, as well as the date of their collection by the manufacturer.
Keeping records of these data makes it possible to identify the goods, determine their whereabouts or detect irregularities or lose. The product itself must have the basis described on the basis of which the tax will be charged. Owing to this type of information, a tax declaration is prepared in a way that is consistent with the facts, so that it does not raise any doubts.
Consignment warehouses in Poland are becoming more and more popular. Thanks to them, it is possible to optimally manage the production process by smoothly ensuring the acquisition of components, without planning the demand for them. They increase liquidity by purchasing goods when they are needed, which avoids stockpiles. This is particularly important for those producers who purchase components from their suppliers from foreign suppliers. Tax simplifications that are provided to EU suppliers to such a warehouse have a big impact on this solution.
In running a consignment warehouse, especially due to the need to comply with legal requirements, it is worth supporting a professional IT system. It enables error-free, precise and easy collection of data, in accordance with legal requirements and in a manner convenient for entities managing such a warehouse.
Ask for the details of our support in this area – it costs nothing, and can significantly affect the daily work and increase the profits resulting from it. We are available at telephone number +48 517 827 436 or e-mail address: firstname.lastname@example.org