VAT OBLIGATIONS IN POLAND
How is the tax period determined in Poland?
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?
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.
SAF-T to replace VAT returns in 2020
The SAF-T files will replace the VAT returns in Poland. The entry into force of that measure has however be postponed to January 2020 (instead of July 2019 initially). In first instance, this will apply to large businesses only (at least 250 employees or turnover of EUR 50 million and balance sheet total above EUR 43 million). These thresholds have to be regarded from a global perspective, meaning that the foreign entities with a Polish VAT number should not consider their Polish activities only. Other entities should apply the above as from July 2020.
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. 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.
Is this requirement laid down in the country and what is the filing deadline?
Your company is not required to file any summarizing annual VAT return in Poland.
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.
Are quarterly filings allowed by the country and what is the filing deadline?
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.
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.
What is the payment deadline?
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?
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].
Payment of VAT to micro accounts
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. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is in principle automatically carried forward to the next period, unless a tax refund has been applied for.
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the 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.