VAT is a tax levied on most of business-to-business (B2B) and business-to-consumer (B2C) transactions in all the European Union’s member states and in an increasing number of other non-EU nations. In order for cross border commerce to function, it is vital that businesses maintain compliant VAT registration profiles and that VAT obligations are met accurately and timely.
Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in Poland is included in our comprehensive guide.
In 1993, the Value Added Tax (VAT) system was adopted to replace the old sales tax in Poland. Multiple amendments to the VAT regulations have been made to bring Polish solutions of turnover taxes in line with the present European common system of VAT. Currently, the VAT Statute of 11 March 2004 is regarded as the fundamental legal act governing VAT rules in Poland.
VAT regulations in Poland are based on EU legislation. This means that the fundamental principles of VAT taxation in Poland are the same as those in other EU member states.
VAT is charged on the following types of transactions:
|National Legislation||Ministry of Finance|
|VAT in local languages||PTU, VAT (Podatek od Towarow i Uslug)|
|VAT number format||1234567890|
|VAT rates||Standard 23%; Reduced 8%; and 5%|
|Zero-rated (0%) and exempt|
|Frequency||Monthly or quarterly|
|Established||PLN 200.000 (ca. EUR 47.000)|
|Intra-Community acquisitions||PLN 50.000 (ca. EUR 11.900)|
|Intra-EU Distance sales and electronically supplied services to consumers (OSS)||PLN 42.000 (EUR 10.000)|
|Recovery of VAT by non-established businesses||Yes|
|Compliance Returns and Supplementary Reports|
|VAT Return VAT-7 (eligible for periods up to September 30, 2020)||25th of the following month|
|European Sales and Purchase Listing (VAT-EU)||25th of the following month|
|SAF-T (Standard Audit File for Tax) (Standard Audit for Tax)- JPK_VAT||25th of the following month|
|Intrastat||10th of the following month|
Law No. 2105 referred to as the “Polish Order” covers a major tax reform including the introduction of VAT groups; shortening the VAT refund period for non-cash taxpayers to 15 days; and dropping VAT on gas to 8%, electricity to 5%, and district heating to 8%.
Poland will implement its e-Invoicing system Krajowy System e-Faktur (KSeF) from January 1, 2022. Under certain conditions, taxpayers who issue electronic invoices through KSeF will receive a VAT refund in 40 days instead of 60 days.
The importation of goods is subject to value-added tax (VAT). It is imposed on goods that are duty-free or for which duty has been partially or completely suspended, as well as on goods that have a preferential, reduced, or zero duty rate in effect.
Normally, businesses must pay VAT at the time of importation, and they can only deduct this VAT once the VAT return has been filed. Poland began deferring import Value Added Tax on 1 July 2020. This enables VAT-registered businesses in Poland to avoid paying VAT at the time goods enter the country, but is reversed in the subsequent VAT return (with nil cash flow impact).
In Poland, import VAT must be paid within 10 days of notification by the customs authorities of the tax liability. Thus, postponed import VAT accounting is the main simplification to improve cash flow.
Last updated: 20/01/2022
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