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Tagging delivery of goods unsuitable for consumption containing ethyl alcohol (completely denatured) of actual alcohol volume exceeding 1.2% with "01" code in JPK_VAT file (SAF-T)

2021-03-15

The Head of the National Revenue Information Service confirmed, in an individual ruling issued on December 28, 2020 case no. 0114-KDIP4-1.4012.575.2020.1.AM., that in JPK_VAT file (SAF-T), the GTU 01 code should only be applied to the supplies of goods containing ethyl alcohol intended for consumption. Therefore, goods such as windscreen washer liquids, defrosters or disinfectant liquids which contain denatured ethyl alcohol (alcohol not intended for consumption), even if these goods contain more than 1.2% ethyl alcohol in their composition should not be tagged with GTU 01 code.

An application for a private tax ruling was filed by a partnership being a producer of car care products and other chemical agents for motor vehicles, such as operating fluids, defrosters and disinfectants.

The products sold by the company contain from 3.1% to about 79% vol. of ethyl alcohol. The products offered by the company include anti-freezing windscreen washer liquids and defrosters, disinfectant products (liquids and wipes) and preparations for cleaning air-conditioning systems, windscreen wipes, summer washer liquids and windscreen washing liquids, as well as foams and other products for cleaning bumpers and car exterior elements.

The partnership raise a doubt whether the goods sold including ethyl alcohol in their composition should be tagged with GTU 01 code.

According the regulation of the Minister of Finance, Investment and Development of October 15, 2019 on the detailed scope of data contained in tax returns and in the register of goods and services tax, the supply of alcoholic beverages - ethyl alcohol, beer, wine, fermented beverages and intermediate products, should be tagged in a JPK_VAT file with GTU 01 symbol.

The definitions of an alcoholic beverage and ethyl alcohol are set out in Arts. 92 and 93 of the Excise Duty Act. According to these provisions, alcoholic beverages include ethyl alcohol, beer, wine, fermented beverages and intermediate products.

On the other hand, the definition of ethyl alcohol for excise duty purposes is very broad and encompasses, among other things, products with actual alcohol volume exceeding 1.2% falling under CN 2207 and 2208, even if those products are part of a product belonging to another division of the Combined Nomenclature. As a result, for excise duty purposes, e.g. denatured ethyl alcohol contained in products such as disinfecting liquids, window washing liquids and windscreen washer liquids, still meets the statutory definition of ethyl alcohol, although it is not intended for consumption.

Therefore, upon a literal construction of the abovementioned regulations one can conclude that ethyl alcohol falls within the definition of alcohol beverages.

The Head of the National Revenue Information Service in its ruling confirmed the partnership’s standpoint stating that the obligation to tag deliveries of goods in the GTU 01 group in the records applies only to deliveries of alcoholic beverages intended for consumption.

In consequence, the goods delivered by the partnership, such as windscreen washer liquids, disinfectants or window washing liquids which contain denatured ethyl alcohol, i.e. alcohol not intended for consumption, should not be marked GTU 01 even if such goods contain more than 1.2% ethyl alcohol,.

 

Paulina Włodkowska, Tax Consultant, ATA Tax Sp. z o.o.

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