VAT Registration in Poland
Before engaging in their initial taxable transaction, entities planning to conduct VAT-registered activities in Poland must complete the VAT registration process. This is a compulsory step for business operations within the European Union.
Regardless of the business structure – be it a legal entity like a corporation, an unincorporated entity like a partnership, or an individual operating as a self-employed businessperson in Poland – VAT registration is mandatory. This applies to those acting as producers, traders, or service providers and includes activities that are exempt from VAT.
Register for VAT in Poland
Threshold
- EU entities – PLN 200.000
- The limit may be applied in one of two ways:
- Retrospectively: the preceding tax year’s value of supplies of goods or services exceeded PLN 200.000.
- Prospectively: At the commencement of operation, the value of goods and services supplied is anticipated to reach PLN 200.000. If the business begins after the calendar year, the registration restriction is proportionately applied to the rest of the calendar year.
- The limit may be applied in one of two ways:
- Non-EU entities – none
- If a foreign firm (that is, an entity that is not founded in Poland and does not have a place of business there) makes taxable deliveries of goods or services in Poland, it must register for VAT.
Options for Registration
Non-resident entities can register for VAT in Poland
- EU entities
A taxpayer has the choice to register for VAT. This intention needs to be communicated to the tax office either before conducting the first taxable transaction or before the start of the month from which the taxpayer wishes to be VAT-registered. If a new business is not expected to reach the registration threshold in terms of the value of its supplies, VAT is not levied on it.
- Non-EU entities
- In general, a foreign business that delivers the following services is not necessary to register for VAT in Poland.
- 1) Services and items that require the purchaser in Poland to account for and pay tax under the reverse-charge method.
- 2) several services that are subject to a zero %.
- In general, a foreign business that delivers the following services is not necessary to register for VAT in Poland.
Taxpayers with VAT-exempt activities are not required to register for VAT.
Selling in Poland?
Registration Information
Taxable Persons
In Poland, the following are classified as taxable persons:
- Natural persons: Individuals who carry out economic activity for VAT purposes, whether as a sole proprietor or a partner in a partnership.
- Legal persons: Companies, corporations, and other entities with legal personality that engage in economic activity for VAT purposes.
- Organizational units without legal personality: These are units that do not have legal personality but can conduct business activities and are subject to VAT. Examples include branches of foreign companies or entities, as well as unincorporated associations or partnerships.
- Natural persons conducting business activity: This refers to individuals who carry out a business activity, regardless of the purpose or results of that activity. This includes individuals who engage in economic activity as a sole trader, freelancer, or as part of a partnership.
Mandatory Registration
In Poland, mandatory registration applies to businesses that meet certain criteria, such as exceeding a certain turnover threshold whereas businesses that sell goods or services subject to VAT are required to register for VAT.
Voluntary Registration
Voluntary Registration is allowed. A person or entity that does not exceed the mandatory VAT registration threshold (currently PLN 200,000 of turnover per annum) may voluntarily register for VAT but is not required to do so. Taxpayers who only engage in VAT-exempt activities may also register for VAT.
Exemptions from Registration
In Poland, there are certain categories of persons who are not obligated to register for VAT, subject to certain conditions. These categories include:
- Individuals whose supply of taxable goods and services does not exceed the VAT registration threshold.
- Individuals who perform activities that are either exempt from VAT or outside the scope of VAT.
- Individuals who are not deemed to be engaging in an independent economic activity.
- Religious, social, and welfare organizations that provide goods and services, even if they charge their members a fee, as long as such activities do not lead to unfair competition.
Groups and Divisional Registration
From January 1, 2023, companies in Poland have the option to form a VAT group if they share financial, economic, and organizational links. Within such a group, members are treated as a single taxpayer, and transactions among them are exempt from VAT.
However, transactions between a member of the group and an external entity are considered as occurring to or from the entire group. The group bears joint and several responsibilities for any VAT obligations. Therefore, if a taxpayer wishes to join or leave an existing VAT group in Poland, a new group must be formed. This means that to add or remove a taxpayer, the establishment of a new VAT group is necessary.
To establish a VAT group in Poland, a written agreement must be entered into that includes the following details:
- The name of the group, including “VAT group” or “GV”
- Information about all taxable persons who are joining the group
- Details about the representative member of the group
- Information about the shareholders and their share capital in the group members
- The duration of the VAT group formation period, which cannot be less than three years.
Registration procedures
- The VAT-R and the NIP-2 or NIP-8 registration forms (which may be submitted electronically under certain conditions) should be submitted by the taxpayer prior to the commencement of the first taxable activity.
- The deadline for issuing a registration decision is two weeks; however, in most cases, it is completed in less than that amount of time.
- Aside from that, taxpayers should obtain a VAT-EU number prior to making their first intra-Community acquisition or making their first intra-Community supply (VAT-R registration is also used for this purpose).
- A taxpayer must also notify the tax office within seven days of the date on which any changes in the scope of information provided within the VAT-R form take effect.
New Regulation July 2021
Starting from July 2021, a new regulation came into effect, removing country-specific VAT thresholds and introducing a unified EU-wide threshold of EUR 10,000 for distance selling. Any distance selling revenues below this threshold continue to be subject to VAT in the seller’s country of origin or home country. Meanwhile, all sales exceeding this threshold are taxable in the countries where the goods and services are delivered.
Distance Sales
In Poland, distance sales refer to the supply of goods to a buyer who is a non-taxable person located in another EU member state, where the goods are dispatched or transported to the buyer from Poland.
The distance sales threshold in Poland is PLN 160,000 for intra-EU supplies of goods. If the seller exceeds this threshold in a calendar year, they must register for VAT in the member state of the buyer and charge and remit VAT in that country.
Last Updated: 10/01/2024
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
