VAT compliance in Poland

You may be obliged to register for VAT in Poland if, among other things

• sell goods on the territory of Poland

• sell goods from Poland and export them to an EU country or buy them from an EU country in Poland

• provide real estate services for an organisation that does not pay VAT in Poland

• importing goods to Poland from outside the European Union

• export goods from the territory of Poland outside the European Union

The declaration of registration with the tax office must be submitted before the first taxable activity in Poland.

The tax exemption based on the turnover achieved in the tax year (turnover up to PLN 200,000) does not apply to taxpayers who are not based in Poland. In this situation, if you do not carry out other activities that are exempt due to their subject matter (e.g. certain medical or financial services), you are obliged to register regardless of your turnover.

The registration of a foreign entrepreneur usually takes about two weeks from the time of submission of the complete documents. Please note that authorising another company to submit tax returns also requires the registration of a power of attorney.

The VAT registration itself does not require the opening of a Polish bank account. However, please note that it is not possible to transfer the VAT shown in Polish tax returns to a foreign bank account. In addition, it is necessary to set up a Polish bank account for split payment transactions. The Polish bank account should be included in the white list.

There is no annual VAT return in Poland. Each accounting period is a separate period. If you have not reported a transaction in the correct accounting period, you are obliged to correct it

As a VAT payer, you are entitled to deduct input tax if you fulfil certain conditions:

• You are registered as an active VAT payer

• the goods or services purchased are related to your taxable activity, i.e. your economic activity

• You have received a document that entitles you to a tax deduction (usually an invoice)

• the expenses are not covered by the tax exemption (e.g. accommodation and catering services)

There are also cases in which input tax deduction is not possible. Among other things, you cannot deduct VAT if the turnover is not taxable or tax-exempt or is documented with a blank invoice (e.g. for a non-existent activity)

The basic deadline for the refund of VAT in Poland is 60 days from the date of the VAT statement (submission of a JPK file with the relevant instruction). If you have not made any sales, the refund period is extended to 180 days. The head of the tax office has the right to extend this period if he considers that the VAT refund requires additional verification.

The refund of VAT is very often checked by the tax office through so-called verification measures. In practice, the tax office requests the documents specified in the statement, in particular invoices for the sale, purchase, documents confirming the export of goods to countries outside the European Union and the transfer of goods within the European Union as part of the intra-Community supply of goods, as well as declarations on the link between the purchases and the taxable activity (structure of the business activity).

If you have made purchases in Poland, have not reported any sales (with certain exceptions) and do not have a permanent place of business in Poland, you can apply for a VAT refund under the procedure for refunds to foreign companies. The application must be submitted via the tax administration of the country in which you are registered by 30 September following the tax year to which the application relates. This deadline may not be exceeded.

No, services should always be taxed in the country where they are provided. Even if you are registered in Poland, the service is not taxed in Poland if:

• you do not have a permanent place of business in Poland

• you are not purchasing a service for which a specific place of supply has been specified (e.g. a service in connection with a property)

The intra-Community supply of goods is exempt from tax if certain conditions, including documentation, are met. The taxpayer must prove in their documentation that the goods that are the subject of an intra-Community supply were exported from Poland to another EU country. This usually involves transport documents received from the carrier (e.g. duly completed CMR letters) and the specification of the individual packages (details such as quantity, weight, dimensions of the goods).

As a rule, you can be registered as a VAT payer in Poland without submitting a VAT return. However, if you do not submit tax returns for six consecutive months or two consecutive quarters, the tax office may remove the taxpayer from the register. Removal from the register can be prevented if, among other things, it can be proven that the failure to submit returns is due to the specific nature of the business activity.

Foreign entrepreneurs with a permanent place of business in Poland will be obliged to use the Polish KSeF (e-invoicing) system. The introduction of the KSeF system is planned for 1 February 2026 for entrepreneurs whose turnover value (including the amount of tax) exceeds PLN 200,000,000 in 2025, and from 1 April 2026 for others.

The standard rate of VAT is 23%. For certain goods and services, rates of 8 %, 5 % or 0 % can be applied. If you are unsure of the applicable VAT rate, you can apply for a so-called binding tax assessment.

When terminating activities in Poland, this fact must be reported on a special form within 7 days from the date of termination of the taxable activity.