EU VAT guide – Poland

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How much is VAT in Poland? 

The Standard VAT Rate (Podatek od Towarów i Usług („PTU”)) in Poland is 23%. 

Some supplies are exempt from VAT. This applies to business activities like education, health care, insurance, and banking services.

The exact list of taxable transactions and allocated Poland VAT rate can be found in Poland VAT regulations. 

VAT thresholds in Poland 

Valuable information about the VAT threshold in Poland and applicable provisions can be found in the VAT legislation. Also, a helpful source of information is an interpretation of the appropriate information shared by Tax Authority officials. 

VAT registration threshold for resident businesses: PLN 200,000 annual turnover 

VAT registration threshold for non-resident businesses: No registration threshold

VAT registration threshold for intra-EU distance sales of goods and B2C supplies of services: EU-wide harmonized threshold of EUR 10,000

VAT registration threshold for non-EU established suppliers of Electronically Supplied Services: No registration threshold

VAT Taxable Activities in Poland

A taxable person by Polish VAT Law is a legal person or individual who carries out economic activity independently, whatever the purpose or results. 

Types of taxable activities that trigger the imposition of Poland VAT: 

• The supply of goods and rendering of services in Poland for consideration;
• Receipt of reverse-charge services by a taxable person in Poland;
• Export of goods;
• Import of goods;
• Intra-community acquisition of goods;
• Intra-community supply of goods. 

Other case scenarios exist where domestic or foreign businesses should impose Poland VAT on their transactions. 

Tax Representative in Poland 

For non-EU established businesses, having a tax representative for all VAT compliance-related activities is mandatory. 

For EU-established businesses, having a tax intermediary isn’t mandatory. Still, the economic operator could acquire the professional to ease up and streamline compliance challenges for its operations in the country. 

VAT on Electronically Supplied Services in Poland 

Electronically Supplied Services 

The European Union’s VAT Directive 2006/112/EC introduced and defined the concept of Electronically Supplied Services (ESS). Defined as services rendered via the Internet or ancillary digital means, ESS are characterized by their inherent automation and operational independence, requiring minimal human intervention. 

In accordance with the VAT Directive, Poland has incorporated the EU’s harmonized definition of Electronically Supplied Services into its national legislative framework. 

The lexicon of digital commerce is rich with terms such as “digital services,” “digital products,” and “electronic services.” These terms, often encountered across various jurisdictions, are not merely colloquial but sometimes, between various jurisdictions, can trigger different VAT implications.

Taxability Rules for ESS

B2B supply of electronically supplied services – Regarding this type of transaction, where the purchaser is a legal person, the general place of supply rules should be applied

B2C supply of electronically supplied services – Non-resident companies should apply EU-harmonized VAT rules specifically designed for this purpose, i.e., that VAT rate of the consumer’s place of residence

B2C supply of electronically supplied services – Non-EU based suppliers should follow the EU harmonized rules regarding place of supply without possibility to leverage the threshold

Place of supply rules for distance sales of goods and B2C ESS – If the annual turnover of the supplier is less than EUR 10,000, the EU merchant has the possibility to apply VAT rules of his country of residence or follow the OSS rules

Place of supply rules for distance sales of goods and B2C ESS – If the annual turnover of the supplier is above the threshold of EUR 10,000, the seller should impose the VAT rate of the country where the goods are dispatched or where the customer receiving the services is based

How much is VAT in Poland for Electronically Supplied Services?

VAT rate Poland: A standard VAT rate of 23% is applied in most cases on sales of Electronically Supplied Services in Poland

E-Commerce VAT Rules in Poland 

On July 1, 2021, the European Union orchestrated important VAT reform applicable to e-commerce activities through the introduction of the E-Commerce Package. This legislative package has been integrated into the national VAT legislations of Member States, marking a significant milestone in the EU’s agenda to unify and simplify the digital economy. 

The pinpoints of these reforms lie in their dual objective: to decrease the administrative burden historically associated with cross-border e-commerce operations and to establish a less-fragmented regulatory environment across the European Union. 

Key Transactions Addressed by the 2021 E-Commerce Reforms:

• Cross-Border Sales of Low-Value Goods: The package introduced VAT obligations to distance sales of low-value goods imported outside EU. These provisions were introduced guided by the idea of establishing level playing field between EU and non-EU suppliers of low-value goods to EU customers. This threshold doesn’t cover excise goods. 
• Intra-Community Distance Sales: The reforms encapsulate sales of goods between Member States, carried out by suppliers or intermediaries acting as deemed suppliers. This adjustment is made with the aim of simplifying the VAT framework for goods that are already in free circulation. 
• Domestic Sales by Deemed Suppliers: Sales conducted within a single Member State, where both parties, i.e., the deemed supplier and customer are based. 
• Provision of B2C Services: The VAT implications for B2C supply of services, particularly those provided by taxable persons outside the customer’s residence, have been widened in scope and streamlined. 

Evolution of VAT Special Schemes:

The update of the VAT Directive with the E-commerce package in mind is more than what has been explained above. Revision of the simplified schemes and introducing of the new one represents an equally important move by EU regulators. 

These changes are instrumental in simplifying the VAT compliance process, especially for businesses engaging in cross-border e-commerce.

The E-Commerce VAT package made the following special schemes available:

• Union One-Stop-Shop Scheme;
• Non-Union One-Stop-Scheme;
• Import One-Stop-Shop Scheme.

Overview of EU VAT Special Schemes 

The Non-Union Scheme can be leveraged by:

Non-EU established businesses and those without fixed establishments in the EU. 

The Non-Union Scheme covers B2C supplies of all services where the place of taxability is within one of the Member States. If the merchant opts to use this scheme, it must use it to collect tax for all B2C sales in the EU. 

The Union Scheme can be leveraged by:

Taxable persons established in the EU for supplies of B2C services having a place of taxability other than the one where the supplier is based and for intra-community distance sales of goods. 

Taxable person not established in the EU for intra-community distance sales of goods 

Digital Marketplace established or not established in the EU for intra-community distance sales of goods and certain domestic supplies of goods

Import Scheme can be leveraged by:

Any taxable person who carries out distance sales of goods imported from third countries or third territories in consignments not exceeding the threshold of EUR 150 

Taxable persons established in the EU, taxable persons non-established in the EU, and electronic marketplaces are eligible to use this type of special scheme. 

OSS Return and Payment 

Rules for VAT Poland don’t offer a simplified VAT reporting system for foreign economic operators providing electronically supplied services or conducting distance sales of goods.

However, foreign taxpayers can utilize uniform EU-based schemes to meet their VAT obligations under Polish law. These schemes are tailored to ease the VAT compliance burden, allowing businesses to efficiently align with Poland’s tax requirements.

Eligibility for leveraging the OSS schemes is directly connected with the nature of the goods and services offered. These outlined rules ensure that businesses consistently utilize the OSS schemes with the intended regulatory framework.

The standard VAT registration and compliance process applies to foreign operators dealing with goods or services not covered by the uniform e-commerce rules. 

Electronic Platform and Deemed Supplier Rules 

In alignment with the European Union’s efforts to harmonize VAT regulations, Poland has adopted the EU’s VAT provisions into its domestic legislation, introducing the concept of the “deemed supplier” and setting forth its scope, advantages, and liabilities. 

Under these provisions, taxable persons facilitating transactions through digital marketplaces assume the role of deemed suppliers, provided specific criteria are fulfilled. When conditions are met, the digital supplier becomes, from a VAT perspective, a “real” supplier. 

The marketplace facilitator becomes deemed supplier for the below-indicated transactions: 

• When goods valued below EUR 150 are imported into the EU from non-EU countries or territories and are subsequently sold to EU consumers by the original vendors.
• When the goods, already within the EU and in free circulation, are sold to EU residents by vendors based outside the EU, with no restrictions on the goods’ value.

This regulatory framework introduces additional responsibilities for deemed suppliers, largely changing this sales model’s VAT obligations for taxable entities. In this multi-sided business model, we have two separate transactions: 

1. The initial supply from the original vendor to the digital platform is recognized as a business-to-business (B2B) transaction.
2. The subsequent supply from the platform to the final consumer is classified as a business-to-consumer (B2C) transaction.

Digital platforms identified as deemed suppliers are mandated to maintain detailed VAT records, which are equally relevant to original vendors. 

The operators of digital platforms should become familiar with record-keeping requirements when they opt to use simplified EU-wide reporting OSS schemes. 

Invoice Requirements in Poland 

General invoice information:

• Date of invoice issuance;
• Date of the transaction if different from the date of invoice issuance;
• A unique sequential number.

Seller information:

• Business Information;
• Full address;
•  VAT number.

Customer information:

• Name;
• Full address;
•  VAT number.

Fiscal Information:

• Description and breakdown of the goods or services – quantity, discounts, unit price excl. VAT;
• Net amount;
• The VAT rate(s) applied and the breakdown of VAT per rate;
• Invoice Total.

Additional information required in particular cases:

• Exemption reference – guaranteed by precise norm;
• Reverse charge – term if applicable;
• Self-billing – term if applicable;
• Tax Representative information.

Foreign Currency Invoice in Poland  

In Poland, it’s permissible to issue tax invoices in foreign currencies, but the VAT amount on the invoice must be shown in Polish zloty. If the supplier doesn’t do this, the invoice is invalid. 

VAT Return in Poland 

Domestic returns

Domestic taxpayers and non-established foreign businesses who conduct business under the national VAT Poland rules should submit monthly or quarterly declarations depending on the reporting period. 

From October 1, 2020, the JPK_V7M or JPK_V7K audit file replaced the standard VAT declaration. 

JPK is an electronic file in XML format. The input data should be taken from the VAT purchase and sales ledgers.

The introduction of the electronic VAT declaration based on the OECD SAFT standard has shifted the submission procedure from paper-based to electronic. 

Depending on the reporting period, economic operators should submit the JPK file by the 25th day of the month following the reporting period. 

Penalties for late reporting and omitted declarations 

Taxpayers should charge Poland VAT on their transactions unequivocally and submit the VAT return. If they do the return fillings after the deadline, they can expect to allocate more funds than they would if they had filled the return within the permitted timeframe. 

Taxpayers can face penalties in the following instances: 

• If the information provided in the JPK file holds erroneous information or lacks necessary information;
• If the tax office hasn’t been notified about the conducted changes which affect previously submitted declaration;
• The JPK file is submitted late, or it isn’t submitted at all;
• The declaration is submitted in paper form or via post, but the mandatory route for submission is the electronic transmission of the file.

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