VAT GUIDE IN POLAND

POLISH VAT GUIDE FOR BUSINESSES

VAT in Poland is a consumption tax applied to the supply of goods and services within the country, as well as to imports and certain intra-Community transactions. The Polish VAT system is governed by the Polish VAT Act and is harmonized with European Union VAT directives, particularly Council Directive 2006/112/EC.

All businesses that conduct taxable activities in Poland, including foreign entities, may be required to register for VAT and comply with Polish VAT obligations.

Poland employs the Split Payment Mechanism for certain transactions and has adopted elements of the EU VAT e-commerce package, affecting cross-border digital and distance sales.

Foreign businesses operating in Poland may be subject to reverse charge rules or may need to appoint a fiscal representative in some cases.

VAT Rates

Standard rate: 23% applies to all supplies of goods or services

Reduced rate: 8%

Super Reduced rate: 5%

Zero rate: 0%

Who Needs to Register for VAT?

A taxable person in Poland is any business or individual engaged in business activities, including trading, manufacturing, or service provision, even if the activity does not generate profit.

The VAT registration threshold is PLN 200,000: it applies retrospectively (based on the previous year’s turnover) or prospectively (expected turnover at the start of business).

New businesses starting mid-year apply the threshold proportionally for the remaining months.

If a business stays below the threshold, VAT registration is optional, but voluntary registration is possible by notifying the tax office before starting taxable activities.

Certain business types must register for VAT regardless of turnover, including those involved in:

Precious metals
Excise goods
New means of transport
Real estate supplies
Distance selling contracts
Legal, consulting, professional, and debt recovery services (including factoring)
Jewelry-related services

The threshold does not apply to:

Foreign businesses
Imports
Intra-Community acquisitions
Domestic reverse charge transactions

If the threshold is exceeded, VAT exemption is automatically lost, and VAT applies to the full amount over the limit. Businesses can also waive exemption voluntarily.

VAT Obligations

VAT Invoicing Requirements

A Polish taxable person must issue VAT invoices for:

Taxable supplies (except VAT-exempt transactions)
Exports of goods
Intra-Community supplies
Supplies under the reverse charge mechanism (goods/services)
Triangular transactions
Distance sales

Simplified invoices are allowed for transactions up to PLN 450 or EUR 100, provided they include enough information to determine VAT rates and amounts.

Invoices are not required for: Exempt supplies, sales to private individuals (unless requested)

Invoices are necessary for VAT refund claims by non-established businesses.

Recordkeeping Requirements

Polish VAT records must include:

All issued and received invoices (including reissued ones)
Records must be organized by settlement period and ensure invoice authenticity, integrity, and legibility

Storage rules:

Polish businesses must keep records in Poland unless stored electronically with online access for tax authorities
Non-established businesses may store records abroad but must provide access upon request

Retention & Archiving

Records must be kept for 5 years from the end of the calendar year in which the VAT became due
Electronic archiving is permitted (but not required), provided data is unchanged and systems are compliant

Since 1 July 2023, users of online cash registers are no longer required to print fiscal receipts or invoices issued instead of receipts

VAT Deadlines

Periodic VAT Returns (SAF-T / JPK_V7M)

All VAT-registered taxpayers must file monthly VAT returns via the SAF-T system (JPK_V7M).
Returns are submitted electronically by the 25th day of the month following the taxable period.
The SAF-T combines transactional data and VAT return into one file.

VAT Payments

VAT due must be paid by the same date as the SAF-T return (by the 25th of the following month).
Payments must be made in Polish zloty (PLN) via bank transfer.

Split Payment Mechanism (SPM)

For qualifying transactions exceeding PLN 15,000, the split payment mechanism (SPM) applies.
Under SPM: VAT portion is paid to the supplier’s VAT account. Net amount is paid to the supplier’s regular bank account.
Invoices must include a “split payment mechanism” annotation; failure to include it can result in penalties.

As of 1 November 2019, SPM is mandatory for certain goods/services listed in Annex 15 of the VAT Act, including sectors like steel, fuel, and construction.

Approved List of Taxable Persons

Since 1 September 2019, the Ministry of Finance publishes a consolidated register of:

VAT-registered businesses
Deregistered entities
Entities under exemption or re-registration
Their bank account details

Payments must be made to bank accounts listed on this register to avoid joint liability for unpaid VAT by the seller.

VAT Refund

Non-established and non-VAT-registered businesses may recover Polish VAT on eligible expenses, under the same conditions as Polish VAT-registered businesses.

For EU Businesses

Refunds are made under EU Directive 2008/9.
Eligible only if no taxable supplies were made in Poland during the refund period (except under the reverse charge).
Refunds are paid in Polish zloty (PLN) to a bank account in either: Poland, or the claimant’s country of residence/business.
Remittance costs for transfers abroad are not covered by Polish authorities.

For Non-EU Businesses

Refunds follow the EU 13th Directive rules.
Poland applies the reciprocity principle: the claimant’s country must offer similar refunds to Polish businesses.
A list of qualifying countries includes:
EU Member States, UK, Norway, Iceland, Switzerland, North Macedonia.
For countries not on the list, claimants must provide evidence of reciprocity.

Specific requirements for non-EU businesses:

Claims must be submitted on paper, in Polish.
Minimum claim period: 3 months
Maximum claim period: 1 calendar year
Deadline: 30 September of the year following the year of the claim

Penalties for non-compliance

Late VAT Registration

Penalties under the Penal Fiscal Code for failure to register on time.

Additional penalties apply for late VAT payments and filings due to delayed registration.

Late VAT Returns & Payments

Fines may be imposed on responsible individuals (natural persons).

Interest on late payments = 200% of the NBP Lombard rate + 2%, but:

Minimum: 8% p.a.

Lowered rate: 4% in some cases

Increased rate: 12% in serious cases

No interest if ≤ PLN8.70

Errors in Returns

Understatement or overstatement penalties:

30% if identified by tax authorities.

20% if corrected after audit.

15% if corrected within 14 days after audit.

These are maximum rates (as of 1 July 2023); actual penalties may be lower.

PLN500 per error in SAF-T (JPK_V7M) if not corrected after tax office notice.

Split Payment Mechanism (SPM)

If buyer doesn’t pay via required split payment:

30% penalty of VAT amount on invoice

Criminal fines up to 720 daily rates

If seller fails to label invoice “Split Payment Mechanism”:

Same penalties apply (30% + up to 180 daily rates)

Approved Vendor List (White List)

For payments > PLN15,000 to a non-listed bank account:

Cannot deduct payment as a cost

Joint liability with seller for unpaid VAT

Can avoid penalty if tax office is notified within 3 days

Electronic Invoicing

Fines:

Up to 100% of VAT on incorrect local invoices

18.7% of total value for VAT-exempt (e.g., intra-EU) invoices

Minimum fines: PLN1,000 or PLN500 depending on issue

Penalties per invoice

Business disruption risks if invoices can’t be processed

VAT Fraud

100% penalty on VAT deductions based on:

Invoices from non-existent entities

Fake transactions

Incorrect values

Sham contracts (e.g., fictitious business)

Also applies if a fiscal receipt is used for VAT deduction without buyer’s VAT number

Common VAT Terms

VAT / Podatek od towarów i usług (VAT / PTU)
VAT number / Numer VAT / NIP
Taxable person / Podatnik
VAT registration / Rejestracja VAT
VAT invoice / Faktura VAT
Input VAT / Podatek naliczony
Output VAT / Podatek należny
Standard rate / Stawka podstawowa
Reduced rate / Stawka obniżona
Exempt / Zwolniony
Zero-rated / Stawka 0%
Reverse charge / Odwrotne obciążenie
Split payment mechanism (SPM) / Mechanizm podzielonej płatności
Tax point / time of supply / Moment powstania obowiązku podatkowego
SAF-T (JPK_V7M) / Jednolity Plik Kontrolny (JPK_V7M)
VAT return / Deklaracja VAT / Plik JPK_V7M
VAT refund / Zwrot VAT
VAT-exempt transaction / Transakcja zwolniona z VAT
Distance sales / Sprzedaż wysyłkowa
Intra-Community acquisition / Wewnątrzwspólnotowe nabycie towarów (WNT)
Intra-Community supply / Wewnątrzwspólnotowa dostawa towarów (WDT)
Tax office / Urząd Skarbowy

VAT, Customs & Excises