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Poland

 

News & Tips

Automatic VAT deregistration

Since 01/01/2017, Polish VAT number of foreign companies having no transactions in Poland during six months or two consecutive quarters will be automatically unregistered by the Polish VAT authorities.


Intra-Community acquisitions 

A deduction of input VAT will be possible provided there is also output VAT reported on the VAT return for the filing period in which the VAT issue arises.

When output VAT is not reported within three months of the VAT issue, it will no longer be possible to retrospectively report the input VAT.


Elimination of the option to file quarterly VAT returns.

This will affect all large taxpayers as well as entities that have just started to conduct business and are still within their first year of activity.


Update of the penalties system

The penalty system will be updated with new penalties of up to 30% of the VAT due. This penalty will apply whenever a business requests an excessive VAT refund or makes a smaller payment than the applicable amount for the relevant period. The penalties can go up to 100% where there is no underlying supply on an invoice issued. These penalties will apply if the tax office uncovers these inconsistencies during an audit.


Reverse charge

The scope of the reverse charge mechanism is being extended to construction services that are provided by foreign subcontractors and Polish taxable businesses.


VAT refund

The current rules set a time limit of 60 days for the Polish authorities to pay back a VAT refund. This limit will be reduced to 25 days when a number of conditions are met, such as providing bank payment proofs for invoices, invoices paid in cash amounting to less than PLN 15,000 in total. Where the conditions are not met, the 60 days limit will remain applicable although a bank guarantee may be necessary when the tax shall be repaid within those 60 days and the audit of the repayment has not ended until then.


More VAT News & Tips in Poland

DOING BUSINESS IN POLAND [PL] - VAT GUIDE

 

General

VAT Directive

Poland

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

There are two VAT numbers in Poland. The "regular" VAT number and a so-called "EU" VAT number used for intra-EU transactions. Polish EU VAT numbers have 12 characters [PL + 10 digits]. 

 

What is the local name of the tax?

 

Podatek od Towarow i Uslug [PTU]

 

VAT rate

VAT Directive

Poland

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Poland applies a standard VAT rate of 23% and two reduced VAT rates: 5% and 8%.

See VAT rates applied in the EU.  

VAT return

VAT Directive

Poland

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly

Your company has to report its VAT position by filing periodical VAT returns [VAT-7] on a monthly basis [standard tax period]. Quarterly reporting period can be opted for under specific conditions.

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

 Periodical VAT return must be submitted by electronic means or paper to Polish VAT authorities before the 25th day of the month [25 of N+1] following the tax period.

Statement

VAT Directive

Poland

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

Your company is not required to file any summarizing annual VAT return in Poland.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month. Taxpayers can however opt for filing the statement on a quarterly basis under specific conditions. ESL must be filed by electronic means no later than the 25th day of the month following the reporting period [month/quarter] to which it relates.

Payment

VAT Directive

Poland

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by filing deadline for the VAT return - no later than the 25th day of the month after the end of the tax period [month/quarter] to which it relates. 

Are interim payments required?

Member States may require interim payment to be made.

Taxpayers filing VAT returns on a quarterly basis must process monthly interim payments ["Pre-Payments Option"]. Payment should be filed by the 25th day of the second and third months of the quarter in the amount of 1/3 of the tax due for the previous quarter. A taxpayer may also opt for calculating the interim payments monthly on the basis of transactions actually carried out in a given month [Actual Payments Option].

VAT refund

VAT Directive

Poland

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for. 

Special measures for foreign companies

VAT Directive

Poland

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable provided the customer is established and VAT registered in Poland.

In case the foreign supplier is VAT registered in Poland [he has opted for or has other activities for which he needs a VAT number], reverse charge is no more applicable.

 

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Reverse charge is applicable on all services provided the customer is established and VAT registered in Poland.

In case the supplier is VAT registered in Poland, reverse charge for services connected with immovable property is no more applicable.

 

Have simplification measures been taken to avoid registration of the foreign company for the goods held on consignment in the country?

 

No

Do special arrangements apply to "call-off-stock"?

 

Yes

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

Triangulation simplification measures can be applied even if the middleman B is VAT registered as a non-established company in Poland [Member State C].

 

VAT on import

VAT Directive

Poland

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

No

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Postponed accounting via the VAT return is possible. A deferred payment for VAT and customs [similar delay] is also possible under specific conditions.

 

Miscellaneous

VAT Directive

Poland

Intrastat Threshold  

Dispatches: PLN 1,5000,000
[PLN 76 million for detailed listing]

Arrivals : PLN 3,000,000
[PLN 42 million for detailed listing]

Distance Sales - Threshold  

PLN 160,000

See various thresholds applied in the EU

Ministry of Finance   website

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