Indirect Export and 0% VAT - Procedure, Documentation and MRN Responsibility

Indirect export is one of the most common export transaction models in international trade - particularly under EXW and FCA terms, where the foreign buyer organises transport. However, this model creates specific VAT challenges: who is the exporter, who receives the export confirmation, who is responsible for closing the MRN, and how do you secure your right to the 0% rate? In this article, we answer these questions by analysing the relevant regulations and practical experience.

What Is Indirect Export? Legal Definition

The definition of export of goods is found in Art. 2(8) of the Polish Act of 11 March 2004 on Tax on Goods and Services (VAT Act). The provision distinguishes two types of export:

• Direct export (Art. 2(8)(a)) - supply of goods dispatched or transported from the territory of Poland outside the EU by the supplier or on their behalf.
• Indirect export (Art. 2(8)(b)) - supply of goods dispatched or transported from the territory of Poland outside the EU by the buyer having a registered office outside the country, or on their behalf (excluding goods exported by the buyer themselves for the purpose of equipping recreational vessels, tourist aircraft or other means of transport for private use).

The key criterion is who organises the transport - the supplier (direct export) or the buyer (indirect export). This distinction directly affects the flow of customs documents, including who receives the export confirmation message and who formally closes the MRN.

Direct vs Indirect Export - Comparison

As the comparison shows, indirect export involves less control over the customs process on the part of the supplier. The buyer decides on the customs agent, port of exit and timelines - and whether the supplier receives the export confirmation on time depends on the buyer's efficiency.

0% VAT in Indirect Export - Conditions and Deadlines

The right to the 0% VAT rate applies to exporters in both direct and indirect export - under Art. 41(4) and (11) of the Polish VAT Act. The condition is possession of a document confirming that the goods left the EU territory.

For indirect export, the regulations specify additional requirements. Under Art. 41(11) of the VAT Act, the 0% rate applies accordingly - meaning the indirect exporter must hold:

• A copy of the document in which the customs office confirmed that the goods left the EU territory (export confirmation) - obtained from the buyer or their customs agent
• Documents confirming the identity of the goods - export invoice, specification, transport documents

The deadlines for obtaining the document are the same as in direct export - approximately 2 months from the end of the month of delivery (the deadline for filing the return for the following tax period). After the deadline - 23% domestic rate with the possibility of subsequent correction.

Incoterms and Export Type - VAT Classification

Incoterms (International Commercial Terms) define the division of responsibilities between seller and buyer in international trade. They have a direct impact on whether a transaction is classified as direct or indirect export.

EXW (Ex Works) - Indirect Export

Under EXW, the seller makes the goods available at their warehouse, and the buyer organises all transport and customs formalities. This is a typical indirect export - the buyer (or their agent) files the export declaration and is the addressee of the export confirmation. The Polish supplier must obtain a copy of the export confirmation from the buyer.

Risk: Highest - the supplier has no control over the customs and transport process. If the buyer does not deliver the export confirmation, the supplier loses the right to 0% VAT.

FCA (Free Carrier) - Usually Indirect Export

Under FCA, the seller delivers the goods to a location specified by the buyer (e.g., terminal, freight forwarder's warehouse). From that point, the buyer assumes responsibility. If the buyer organises customs clearance - this is indirect export. If the seller handles customs clearance (FCA with seller-side clearance) - it may qualify as direct export.

FOB (Free on Board) - Usually Direct Export

Under FOB, the seller delivers the goods on board the vessel at the port of loading and bears costs up to that point, including customs clearance. This suggests direct export - the seller is the party to the customs procedure and should receive the export confirmation directly.

CIF (Cost, Insurance and Freight) - Direct Export

Under CIF, the seller bears the costs of transport and insurance to the destination port. They organise both transport and customs clearance - this is unambiguously direct export. The export confirmation goes directly to the seller.

Who Is Responsible for Closing the MRN in Indirect Export?

This is one of the most frequently asked questions by indirect exporters - and a source of many practical problems.

From a customs perspective, the party responsible for closing the MRN is the entity that filed the export declaration - usually the foreign buyer or their customs agent. They are the “declarant” in the AES system, and the export confirmation is sent to them.

From a VAT perspective (under Polish law), the responsibility for holding the export confirmation document lies with the Polish supplier. They must have the export confirmation (or a copy) to apply the 0% rate. If the buyer does not provide the export confirmation - the tax consequences fall on the Polish supplier.

This creates a situation where the Polish supplier bears the tax risk but does not control the customs process. This is the fundamental problem of indirect export.

What To Do When the Buyer Does Not Close the MRN?

If the foreign buyer does not ensure proper MRN closure (which happens more often than one might expect), the Polish supplier has limited options:

• Press the buyer - correspondence, reminders, escalation. Effectiveness depends on the business relationship.
• Contact the buyer's customs agent - if you know the agent's details, you can request information about the MRN status and a copy of the export confirmation.
• Commission MRN closure from a specialist - closemrn.com can close an MRN even if the declaration was filed by another party. We only require the MRN and documents confirming loading.
• Use alternative proof of export - as a last resort. More information: Alternative proof of export.

Documentation Required for Indirect Export

In indirect export, the Polish supplier should collect and retain the following documents:

1. Export invoice - with a note regarding the export, buyer details and goods description
2. Copy of the export confirmation - obtained from the buyer or their customs agent. This is the key document for 0% VAT.
3. Transport documents - CMR, B/L, AWB - confirming the transport route
4. Contract with the buyer - specifying the Incoterms and the parties' obligations regarding customs clearance
5. Correspondence - emails, letters confirming that transport was organized by the buyer
6. Goods specification - packing list, serial numbers, container numbers

Risks of Indirect Export and How To Protect Yourself

Indirect export generates specific risks that do not exist in direct export. Below are the most important ones and ways to mitigate them:

1. Risk of Missing the Export Confirmation

Problem: The buyer does not provide the export confirmation - due to negligence, lack of awareness, or because they themselves have not closed the MRN.
Safeguard: Contractual clause + proactive MRN status monitoring + readiness to commission MRN closure from a specialist.

2. Risk of Errors in the Declaration

Problem: The buyer's customs agent makes errors in the export declaration (e.g., incorrect EORI of the Polish supplier), which complicates the subsequent linking of the export confirmation with the export invoice.
Safeguard: Before dispatching the goods, verify with the buyer the data that will be entered in the export declaration - particularly the EORI, container number and goods description.

3. Risk of Delays

Problem: The buyer does not monitor MRN closure deadlines, and you lose the right to 0% VAT in the return for the relevant period.
Safeguard: Monitor the MRN status and react proactively - do not wait for the buyer to take the initiative. If 3 weeks after the vessel's departure the MRN is still open, submit a closure request.

FAQ - Indirect Export and 0% VAT

Legal basis: Art. 2(8), Art. 41(4)-(11) of the Polish Act of 11 March 2004 on Tax on Goods and Services (consolidated text: Dz.U. 2025, item 775). Regulation (EU) No 952/2013 of the European Parliament and of the Council (Union Customs Code, Art. 263-277). Incoterms 2020 ICC (International Chamber of Commerce). This article is for informational purposes and does not constitute legal or tax advice.