Poland

The basics

In Poland, Value Added Tax (VAT) is referred to as Podatek od towarów i usług. The Polish VAT system includes a standard rate of 23% and two reduced rates of 8% and 5%. In addition, some goods and services are either zero-rated or exempt from VAT.

The standard VAT rate of 23% applies to all taxable goods and services that do not qualify for a reduced or zero rate.

A reduced VAT rate of 8% applies to selected products and services, including restaurant and catering services, hotel accommodation, newspapers, pharmaceuticals, and various food products. A second reduced rate of 5% is available for certain goods and services such as books, specialist periodicals, and basic foodstuffs. A 0% VAT rate applies to medical and dental care services.

VAT registration

Businesses established in Poland must register for VAT when their annual turnover exceeds PLN 200,000. Once registered, they are required to charge VAT on taxable supplies and remit it to the tax authorities.

On 1 July 2021, individual country distance-selling thresholds were replaced by a single EU-wide threshold of €10,000. This limit applies across all EU Member States. If a business exceeds €10,000 in annual cross-border sales within the EU, VAT registration in Poland becomes necessary.

A VAT registration obligation may also arise if products are stored in Poland or if the business participates in a Fulfilled-by-Amazon (FBA) arrangement such as Amazon’s Central European Programme (CEE), which allows inventory to be stored in Poland, Germany, and the Czech Republic.

To obtain a Polish VAT number, businesses must complete the required registration forms and submit them, together with supporting documentation, to the tax office in Warsaw. All supporting documents must be translated into Polish and notarized. The registration process generally takes between four and six weeks.

Fiscal representative

Non-EU businesses trading in Poland are required to appoint a fiscal representative. This representative shares responsibility for any Polish VAT liabilities incurred by the business.

VAT returns and penalties

VAT returns in Poland must be filed electronically using the Standard Audit File for Tax (SAF-T). Returns are normally submitted monthly and must be filed by the 25th day of the following month. Businesses that meet the relevant turnover conditions may choose quarterly filing, which follows the same deadline principle.

Late submission of VAT returns is subject to a penalty of at least 8% of the VAT due. If VAT payments are made after the deadline, interest charges ranging from 15% to 22.5% of the unpaid VAT may apply.

Intrastat reporting

Both resident and non-resident businesses may be required to submit Intrastat declarations in Poland. These declarations must be filed electronically through the website of the Polish Ministry of Finance by the 10th day of each month.

The reporting thresholds for standard Intrastat declarations are PLN 3,000,000 for arrivals and PLN 2,000,000 for dispatches. For detailed Intrastat reporting, the thresholds are PLN 42,000,000 for arrivals and PLN 76,000,000 for dispatches.

Reverse charge

Under the reverse charge mechanism in Poland, the obligation to account for and pay VAT is transferred from the supplier to the recipient of the goods or services. This mechanism is primarily used for cross-border transactions within the EU and in certain designated sectors. As a result, the foreign supplier is generally not required to register for VAT in Poland.