A fundamental aspect of Poland’s taxation system, Value-Added Tax (VAT), impacts a wide range of goods and services within the country. Businesses engaged in VAT-taxable activities must comply with Polish VAT filing regulations to avoid penalties and fines.

This blog will guide you through everything you need to know about VAT returns in Poland, from VAT rates and registration requirements to filing deadlines and reporting tips.

By the end of this article, you’ll have a comprehensive understanding of how VAT operates in Poland and how to maintain full compliance with the country’s VAT laws.

What is a VAT Return in Poland?

A VAT return in Poland is a mandatory document that businesses must submit to the Polish tax authorities. It serves to report the VAT that a company has collected from customers and the VAT it has paid on its business expenses.

These returns are crucial for ensuring compliance with Poland’s VAT system. They provide the tax authorities with valuable insights into a business’s VAT obligations and its eligibility for potential refunds.

Filing VAT returns Poland accurately and on time is critical to avoiding penalties and interest. For businesses of all sizes in Poland, failing to meet the filing requirements can result in heavy fines and possible audits, making timely and accurate reporting essential.

Current VAT Rates in Poland

Poland applies a tiered VAT system, with different rates for various categories of goods and services. Here is a breakdown of the current VAT rates in Poland:

  • Standard Rate (23%): The default VAT rate applied to most goods and services in Poland.
  • Reduced Rate (8%): Applies to a select group of goods and services, including public transportation, food products, some medical supplies, and tourism services.
  • Super-Reduced Rate (5%): This rate is applied to specific items such as books, newspapers, and certain educational services.
  • Zero Rate (0%): Exports and international transport services typically fall under this category, ensuring VAT isn’t charged on these transactions, promoting international business.

Who Needs to Register for VAT in Poland?

In Poland, businesses must register for VAT if they meet specific criteria based on their turnover and the nature of their activities. Here are the criteria for VAT registration:

  • Businesses Engaged in Taxable Activities: Any company or individual conducting taxable transactions (e.g., selling goods/services or imports/exports) in Poland is required to register for VAT.
  • Registration Threshold: If a business’s taxable turnover exceeds PLN 200,000 per year, it must register for VAT. Businesses with lower turnover may still be required to register if they offer certain goods or services.
  • Foreign and Non-EU Businesses: Foreign companies selling taxable goods or services in Poland must register for VAT upon their first taxable transaction. Non-EU businesses must also appoint a local fiscal representative.
  • EU Businesses: EU businesses making taxable supplies in Poland must register for VAT, though they do not need a fiscal representative.
  • Distance Sellers: The threshold for distance sales to Polish consumers is now governed by the EU-wide EUR 10,000 threshold.

How Often Must VAT Returns Be Filed in Poland?

The frequency of VAT tax filing Poland depends on the size and VAT liability of the business. Here’s the general filing schedule for VAT returns in Poland:

  • Monthly Filers: The default for all new VAT registrants and most businesses. Mandatory for non-established entities and sellers of “sensitive” goods (e.g., electronics, construction services).
  • Quarterly Filers: Only available to small businesses with annual turnover less than PLN 5,068,000 (around €1.2M) after 12 months of VAT registration. Not available for new taxpayers or high-risk sectors.
  • Annual Filers: No annual VAT returns exist in Poland. All businesses file monthly/quarterly.

VAT Reporting Requirements in Poland

Businesses in Poland are required to report both the VAT they have collected on sales (output VAT) and the VAT they have paid on purchases and business-related expenses (input VAT). 

The difference between the output VAT and input VAT determines whether the business owes VAT to the authorities or is entitled to a refund. To ensure compliance, businesses must submit supporting documentation for any VAT exemptions, deductions, or special schemes applied. 

All VAT returns Poland must be filed through the Polish Ministry of Finance’s e-Deklaracje online portal, which ensures accuracy in reporting. Additionally, businesses must maintain accurate records to properly calculate VAT and avoid discrepancies.

VAT Return Deadlines in Poland

The deadlines for submitting VAT returns Poland depend on the filing frequency. Here are the Poland VAT return deadlines:

Filing Frequency Deadline for VAT Return Submission Payment Deadline
Monthly Filers 25th day of the following month Payment due on the same day
Quarterly Filers All returns are due by the 25th of the month following the reporting period. Payment due on the same day
Annual Filers Not applicable for regular VAT returns N/A

Failure to meet these deadlines may result in penalties and interest charges, so it is crucial for businesses to stay on top of their filing schedules.

How to File VAT Returns in Poland?

To answer the question “How to file VAT returns in Poland?”, businesses need to follow some important steps. Here are those critical steps to follow:

  1. Register for VAT: Businesses must first register with the Polish tax authorities and obtain a VAT number.
  2. Access the Online Portal: Use the JPK_VAT (SAF-T) system, not just e-Deklaracje. JPK_VAT combines VAT records and declarations into a single XML file
  3. Report Collected and Paid VAT: Businesses must report the VAT they’ve collected from customers and the VAT they’ve paid on purchases.
  4. Submit Supporting Documents: Supporting documents (e.g., invoices) must be retained for 5 years, but do not need to be submitted unless audited.
  5. Maintain Accurate Records: Businesses must keep detailed records of all VAT-related transactions for at least 5 years to ensure compliance with Polish VAT laws.

VAT Invoicing Requirements in Poland

Invoices in Poland must meet specific requirements to be VAT-compliant. A valid VAT invoice must include:

  • VAT Numbers: Both the seller’s and buyer’s VAT numbers.
  • Transaction Details: The date of the transaction, description of goods or services, and quantities sold.
  • VAT Amount: The VAT rate applied and the total VAT amount, clearly stated on the invoice.
  • QR Code: QR codes are optional unless using structured electronic invoices (a specific format not mandatory for most businesses).

Ensuring that invoices meet these requirements is essential to avoid complications with VAT returns and audits.

What VAT Can Businesses Deduct in Poland?

Businesses in Poland can deduct VAT on purchases (input VAT) made for business purposes. Here are some common deductible VAT in Poland:

  • VAT on goods used for business operations.
  • VAT on raw materials, office supplies, and equipment used for business activities.

While generally true, deductions require strict compliance. Invoices must include the contractor’s VAT number, and services must be directly related to taxable activities.

Personal expenses or non-business-related purchases do not qualify for VAT deductions. Businesses must maintain proper records and valid invoices to substantiate these claims.

How to Recover VAT Credits and Refunds in Poland?

If a business has paid more VAT on purchases than it has collected on sales, it can claim VAT credits or refunds. Here are the steps to recover VAT in Poland:

  1. Submit a VAT Refund Application: Must be filed electronically via e-Deklaracje. The application deadline is 30 September of the year following the tax year.
  2. Provide Supporting Documents: Businesses must submit invoices or receipts for the eligible business expenses.
  3. Processing Time: Varies by taxpayer type, ranging from 15–25 days for compliant taxpayers with verified documents, up to 180 days for high-risk audits, and 60 days as standard.
  4. Refund Method: Typically, bank transfer only (no credit option unless explicitly agreed with the authorities).

VAT on Imports and Exports in Poland

For businesses involved in international trade, understanding VAT on imports and exports is crucial. Here’s what you need to know:

Imports: 

Imported goods in Poland are subject to VAT at the standard rate of 23%, unless goods qualify for reduced rates.

VAT is paid to customs at the time of import, and businesses can reclaim this VAT as input VAT if the goods are used for taxable business activities, such as for resale or manufacturing. 

This process ensures that businesses are not unfairly taxed twice, as they can recover the VAT paid on imports through their VAT returns. Proper documentation, such as invoices and customs clearance forms, is essential for claiming input VAT on imports.

Exports: 

Exports to non-EU countries are generally zero-rated for VAT, meaning no VAT is applied to goods shipped outside the EU. This exemption is designed to encourage businesses in Poland to engage in international trade without the burden of VAT. 

To qualify for this VAT exemption, businesses must maintain detailed export documentation, such as shipping records, export declarations, and proof of delivery, to substantiate the zero-rating. 

Customs declarations (e.g., SAD forms) are required for zero-rating. Failure to keep accurate documentation may result in VAT being charged later.

Reverse Charge Mechanism for VAT in Poland

The reverse charge mechanism applies in specific cases where the responsibility of paying VAT shifts from the seller to the buyer. Here are the key points:

  • Applies to Certain Services: The reverse charge mechanism is typically used for services related to construction, digital services, telecommunications, CO2 emissions trading and gas/electricity supplies.
  • B2B Transactions: This mechanism applies primarily to business-to-business transactions within the EU.
  • Simplifies VAT Collection: It simplifies VAT collection for cross-border transactions, reducing the seller’s administrative burden.

Digital Services and VAT Obligations in Poland

For businesses providing digital services in Poland. Here are some VAT obligations in Poland:

  • VAT on Digital Services: Digital services, such as e-books, online subscriptions, and software, are taxed based on the customer’s location.
  • MOSS Scheme: Through the Mini One Stop Shop (MOSS) scheme, businesses can file a single VAT return for all EU sales, simplifying VAT reporting.
  • Customer Location Tracking: Businesses must track customer location to apply the correct VAT rate for digital services.

Common VAT Compliance Mistakes to Avoid in Poland

To avoid penalties, businesses should avoid some mistakes. Here are some common errors to avoid:

  • Incorrect Invoicing: Applying wrong VAT rates or omitting required invoice details.
  • Late VAT Returns: Missing filing deadlines can result in fines and interest charges.
  • Improper Deductions: Claiming VAT on non-business-related expenses

Recording properly and staying updated with VAT regulations is key to avoiding these mistakes.

VAT Penalties and Compliance Risks in Poland

Failure to comply with VAT rules can lead to significant penalties. Here are some notable ones:

Late Filing Penalties: 

  • For fiscal offenses: From PLN 466,60 to 93,320 depending on severity.
  • SAF-T-specific penalties: PLN 2,800 per late/missing JPK_VAT file.

Interest on Overdue VAT: 

  • Standard rate: 12% annually (200% of NBP Lombard rate + 2%).
  • Increased rate: Up to 150% higher (18–30% effective) if underpayment exceeds 25% of liability.

Tax Audits: 

  • Triggers: Late filings, mismatched JPK_VAT records, or irregular input VAT claims.
  • Penalties: From 30-100% of the evaded VAT if fraud is proven. 20% penalty if errors are corrected pre-audit.

Simplify Your VAT Registration and Filing in Poland with Commenda

Managing VAT registration and filing in Poland can be a complex task, but Commenda makes it simple. Our platform provides expert solutions to help businesses stay fully compliant with Polish VAT laws, ensuring seamless VAT calculations and timely filings. 

With automated features and real-time updates, we minimize errors and streamline your VAT reporting process.

Commenda handles all your VAT needs, from registration to filing, so you can focus on growing your business. Our solutions are designed to save you time and effort, reducing the risk of penalties while ensuring accurate tax filings.

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FAQs About VAT Returns in Poland

Q. What is VAT, and why do I need to file VAT returns in Poland?

VAT is a tax levied on goods and services. Businesses file VAT returns to report VAT collected and paid, ensuring compliance with Polish tax laws.

Q. How often do I need to submit my VAT returns in Poland, and what is the deadline?

Most businesses file monthly. Small businesses (turnover under PLN 5,068,000) can file quarterly after 12 months. All returns are due by the 25th of the following month.

Q. What happens if I miss the VAT return deadline in Poland?

Late filing incurs fines (PLN 700+ for individuals, PLN 1,400+ for businesses) and interest. Repeat delays may trigger audits.

Q. How do I calculate VAT in Poland?

Subtract input VAT (paid on purchases) from output VAT (collected on sales). Pay the VAT you owe, or claim a refund if you’ve overpaid.

Q. What should I do if I make an error on my VAT return in Poland?

Submit an amended return via the Polish tax authority’s online portal to correct any mistakes.

Q. Can I claim VAT refunds on business expenses in Poland?

Yes, if expenses are business-related and properly documented. Refunds require valid invoices.

Q. What records do I need to keep for VAT purposes in Poland?

Keep invoices, receipts, and transaction records for 5 years. Digital records must comply with JPK_VAT standards.

Q. Do I need to register for VAT in Poland if my business is based outside of Poland?

Yes, if you make taxable sales in Poland. Foreign businesses must register and file electronically.

Q. Are there penalties for submitting inaccurate VAT returns in Poland?

Yes, fines and audits apply for errors. Fraudulent filings risk penalties up to 100% of underpaid VAT.

Q. How can I file VAT returns in Poland?

File electronically via the JPK_VAT/SAF-T system. Paper filings are not accepted.