VAT Reverse Charge: 🇲🇹 Malta to 🇵🇱 Poland

Yes. When a VAT-registered business in Malta supplies B2B services to a VAT-registered business in Poland, the reverse charge mechanism applies under Article 196 of EU VAT Directive 2006/112/EC. The Malta supplier invoices at 0% VAT, and the Poland customer self-accounts for VAT at their local rate of 23%.

If the customer is VAT-registered, put 0% VAT on the invoice. You must include the customer's Poland VAT number and the note: "VAT reverse charge — Article 196, Directive 2006/112/EC". Do not charge Malta VAT (18%) on cross-border B2B service invoices.

The standard VAT rate in Poland is 23%. When reverse charge applies, the Poland customer declares 23% VAT in their local VAT return and simultaneously deducts it as input VAT — so the net cash effect is zero for a fully VAT-registered business.

Yes. You must report cross-border B2B services in your EC Sales List (ESL), also known as VIES or Recapitulative Statement. Report these as services (not goods) using the customer's Poland VAT number. Filing frequency depends on Malta's local rules — typically monthly or quarterly.

If the customer in Poland does not have a VAT number, reverse charge does not apply. For B2C supplies or non-registered businesses, different rules apply. For most services, you would charge Malta VAT (18%). For digital/electronically supplied services, Poland VAT (23%) may apply via the EU One Stop Shop (OSS) scheme.

Verify the customer's VAT number using the EU VIES system at ec.europa.eu/taxation_customs/vies before issuing a zero-rated invoice. Poland VAT numbers start with the prefix "PL". Keep a record of the VIES confirmation for your audit trail.

Reverse charge under Article 196 applies to most B2B services where the place of supply is the customer's country. Some services have special rules — for example, services related to immovable property are taxed where the property is located, and short-term vehicle hire has specific rules. For standard professional, consulting, digital, and software services between Malta and Poland, reverse charge applies.

Your invoice must include: (1) Your Malta VAT number, (2) The customer's Poland VAT number, (3) 0% VAT / VAT amount: 0.00, and (4) The legal reference: "Reverse charge — Article 196, Council Directive 2006/112/EC". Some suppliers also add the Poland equivalent note in the local language.