ICA – what is an intra‑Community acquisition of goods?

Intra‑Community acquisition of goods (ICA) is an important element of the VAT system and plays a significant role for companies purchasing goods from suppliers in other EU Member States. Correctly determining whether a given transaction meets the criteria for an ICA affects the method of VAT settlement, the moment the tax obligation arises, and the scope of required records and declarations.

This analysis discusses the essence of ICA, the conditions under which a transaction is classified as an intra‑Community acquisition of goods, and the tax consequences associated with such purchases.

What Is an Intra-Community Acquisition of Goods?

Pursuant to Art. 9 of the Act of 11 March 2004 on Value Added Tax (consolidated text: Journal of Laws of 2025, item 775), an intra-Community acquisition of goods is understood as the acquisition of the right to dispose of goods as owner. This applies when goods are dispatched or transported from another EU Member State to Poland.

The essence of ICA is therefore not the conclusion of a sales contract itself. What matters is the actual movement of goods between EU Member States. This movement must be combined with the transfer of the right to dispose of the goods as the owner.

Conditions for Classifying a Transaction as ICA

For a transaction to qualify as an ICA, several conditions must be met. These conditions relate both to the parties involved and to the goods themselves.

Table 1. Basic Conditions for Recognising a Transaction as ICA

What is important, the supplier does not need to have an EU VAT number. This is not necessary for the transaction to be treated as an intra-Community acquisition. The decisive factor is the actual nature of the transaction. The formal status of the counterparty is not relevant.

Tax Obligation in Intra-Community Acquisition of Goods

In an intra-Community acquisition of goods, taxation takes place in the purchaser’s country, i.e. in Poland. This means that the Polish taxpayer is required to settle the VAT due.

As a rule, the tax obligation arises at the moment the invoice is issued by the value-added tax taxpayer. Yet, it cannot be later than the 15th day of the month following the month in which the goods were supplied.

For new means of transport, the tax obligation arises upon receipt of the goods. In this case, it cannot arise later than the date the invoice is issued.

It is important to note that the payment of an advance for an ICA does not trigger a VAT tax obligation. This distinguishes intra-Community acquisitions from domestic supplies of goods.

Tax Base for Intra-Community Acquisition of Goods

The tax base for an intra-Community acquisition of goods includes all amounts payable. The purchaser is required to pay them to the supplier.

In particular, the tax base includes:

• the purchase price of the goods,
• taxes, duties, and charges (excluding VAT),
• extra costs such as transport, insurance, or commissions.

The tax base may be reduced, for example, by granted discounts or returned goods. In practice, ICA is accounted for simultaneously as output VAT and input VAT. As a result, the transaction is usually VAT-neutral.

Exclusions from Intra-Community Acquisition of Goods

Not every movement of goods between EU Member States is an intra-Community acquisition of goods. The VAT Act provides a catalogue of situations in which ICA does not occur. Even though goods are physically moved between countries.

In particular, ICA does not occur if:

• the purchaser is a flat-rate farmer, and the goods are acquired for agricultural activity;
• the purchaser carries out only non-taxable activities. They have no right to deduct input VAT;
• the purchaser benefits from a VAT exemption. The value of ICA has not exceeded the statutory threshold.
• the purchaser is a legal person who is not a taxpayer. The total value of intra-Community acquisitions in Poland has not exceeded 50,000 PLN. This applies to the current or the previous tax year.
• the goods are acquired from a non-taxable person or from a taxpayer benefiting from VAT exemption;
• the supplier applies the VAT margin scheme. The purchaser holds documents clearly confirming the use of this procedure;
• the supply concerns goods together with their assembly or installation.

The above exclusions do not apply to new means of transport. They also do not apply to excise goods. These items are subject to special taxation rules.

Table 2. Transactions Where ICA Does Not Occur

Intra-Community Acquisition of Goods and VAT-Exempt Taxpayers

Taxpayers benefiting from a VAT exemption generally do not account for ICA. This applies if the statutory value threshold is not exceeded. Once this limit is exceeded, the obligation to settle ICA arises under general rules.

Most Common Mistakes in Accounting for Intra-Community Acquisition of Goods

In business practice, the most frequent irregularities include:

• incorrect determination of the moment when the tax obligation arises,
• incorrect calculation of the tax base,
• failure to report the transaction in the VAT-UE summary information,
• ignoring statutory exclusions.

What Declarations and Information Must Be Filed?

The scope of reporting obligations related to ICA depends on the taxpayer’s status.

• Active VAT taxpayers report ICA in the JPK_V7 file and in the VAT-UE summary report. Both in the records and declaration sections.
• VAT-exempt taxpayers who need to account for ICA, report the transaction in the VAT-8 return and in the VAT-UE information.

Correct reporting of ICA in tax returns is crucial for tax audits. It is also important for ensuring consistency in intra-Community transaction settlements.

Intra-Community Acquisition of Goods – Summary

Intra-Community acquisition of goods is one of the fundamental VAT mechanisms in EU trade. Despite its apparent simplicity, it entails significant tax and reporting consequences. Correct classification of a transaction as ICA is crucial. Determining the tax obligation date accurately is vital for tax security. Accurate reporting in JPK_V7 and VAT-UE is also important.

If you purchase goods from contractors in other EU Member States, you may have doubts. You may be unsure whether a transaction qualifies as an intra-Community acquisition of goods. You may also wonder how it should be correctly settled for VAT purposes. In such cases, professional support is worth considering. Individual analysis helps avoid errors, JPK corrections, and the risk of tax sanctions. Contact us today!

FAQ About Intra-Community Acquisition of Goods