VAT in Poland: Rates, Registration, and Compliance Guidelines

VAT in Poland - Three Types of Rates

There are three types of VAT rates in Poland:

1. Standard VAT rate,

2. Reduced VAT rates,

3. Zero VAT rate.

How Much is VAT in Poland’s Regions?

Poland is one country that does not have special VAT rates defined for specific regions, meaning that three types of VAT Poland rates apply throughout the country.

VAT Registration Threshold

Under VAT Poland law, the primary source of VAT-related information, together with the tax authorities and government comments and opinions, defines the VAT registration threshold for domestic and foreign taxable persons engaging in taxable activities in Poland.

VAT Registration Threshold

Under the VAT Poland law, the primary source of VAT-related information, together with the Tax authorities and government comments and opinions, defines the VAT registration threshold for domestic and foreign taxable persons engaging in taxable activities in Poland.

In accordance with the law, domestic businesses with an annual turnover of PLN 200,000 or more must register for VAT once this threshold is exceeded. Notably, starting from January 1, 2026, the VAT registration threshold will increase to PLN 240,000. On the contrary, non-resident businesses in Poland have no VAT registration threshold, meaning they must register before operating there. 

As an EU Member State, Poland implemented the EU unified rules on the VAT registration threshold for intra-EU distance sales of goods, B2C supplies of services, and electronically supplied services. The threshold is set at EUR 10,000 for intra-EU distance sales of goods and B2C supplies of services, whereas there is no registration for electronically supplied services.

Poland implemented the EU VAT SME scheme rules, which state that a taxable person from another EU country qualifies for this scheme if the total value of its taxable supplies across the EU, including Poland, does not exceed EUR 100,000 in both the previous and current calendar years. Additionally, its domestic sales in Poland must remain below PLN 200,000 during the same periods, or be proportionate if the business operated for only part of the year.

Types of Taxable Activities in Poland

Similar to other EU countries, Polish VAT law identifies taxable persons as either legal entities or natural persons who perform an economic activity, that is, a taxable activity, independently, regardless of the purposes or results achieved.

The law further states that a range of activities is considered taxable, including the supply of goods and services in Poland for a fee, the reception of reverse-charge services by a taxable person in Poland, imports and exports of goods, and intra-EU acquisition and supply of goods.

VAT Registration Process

Considering the VAT registration threshold rules, it is clear that there are different registration requirements for domestic and foreign taxable persons in Poland. Similarly, there are differences in the VAT registration process for domestic and foreign taxable persons, such as businesses.

Poland VAT Registration for Domestic Businesses

Once the registration VAT threshold is exceeded, VAT registration is required. However, it is also possible to register for VAT voluntarily. Domestic businesses must submit a VAT-R application to the competent Tax Office to complete registration. The submission can be made in person at the tax office, by mail, or electronically. 

The Tax Office then steps in to validate the application and the provided data and may request additional information or clarification. There are no registration procedure fees, except for businesses that want a confirmation of registration, which costs PLN 170.

Poland VAT Registration for Foreign Businesses 

Foreign businesses must register for VAT in Poland before conducting their first taxable sale, at the latest. However, they can also initiate this procedure one month before the month in which they want to become VAT-registered businesses.

One crucial difference exists between foreign businesses located in another EU country and those based outside the EU. While non-EU companies must appoint a tax representative for all VAT-related matters, having a tax intermediary is not mandatory for EU-established businesses

VAT Returns in Poland

All VAT-registered taxpayers, whether residents or non-residents, must submit a monthly or quarterly VAT return by the 25th of the month following the reporting period. Generally, monthly VAT returns must be submitted, whereas small taxpayers may submit quarterly returns.

VAT returns must be sent to the Tax Authority electronically as the JPK_VAT, also known as SAF-T Standard Audit File Tax. There are two variations of the JPK_VAT return: the JPK_V7M form for taxable persons who submit monthly returns and the JPK_V7K form for quarterly VAT returns.

Penalties for Failure to File Tax Return

Failing to submit VAT returns or submitting incorrect or late returns will undoubtedly result in businesses being subject to penalties and fines issued by the Tax Authority. Additionally, submitting the VAT return on paper when it is required to be done electronically will also result in potential penalties.

VAT Rules for Electronically Supplied Services 

Electronically Supplied Services (ESS) are the concept introduced by the EU VAT Directive as part of the EU-wide reform of VAT legislation. Under the EU VAT rules, ESS are services automatically supplied through the Internet or similar online networks. One more critical component of the ESS is that service provision does not rely on human intervention. If it does, it is minimal. 

To avoid confusion, ESS has several other common names, such as digital services, digital products, and electronic services. Taxable persons providing ESS should pay attention to the EU-wide and national definitions, as they may have slightly different VAT implications across EU countries.

Taxability Rules for ESS:

For the supply of ESS between two businesses, the so-called B2B supply of ESS, the general place of supply applies. Regarding the B2C supply of ESS, the destination principle determines which VAT rate applies. For non-EU suppliers, they must apply the VAT rate of the country where their consumers reside, e.g., VAT rate Poland.

Furthermore, EU-wide rules, also implemented in Polish national law, state that the place of supply rules for distance sales of goods and B2C ESS largely depend on the EUR 10,000 threshold. When the annual turnover from ESS supply is below the set limit, suppliers can apply the VAT rates in their country of origin.

When this threshold is exceeded, the situation shifts. Then, suppliers must use the VAT rate of the country where the goods or services are delivered, that is, where their customer is located.

How much is VAT in Poland on ESS?

The Poland VAT rate for ESS is 23%.

E-Commerce Rules

July 1, 2021, marks a significant date in the EU VAT framework. On that date, new e-commerce rules came into effect, changing the EU VAT landscape, how businesses operate in the single EU market, and the steps necessary to be VAT-compliant.

These EU-wide rules, implemented in each EU Member State, thus introduce a more harmonized and, for e-commerce businesses, more efficient system.

The fundamental changes this e-commerce package brought are the introduction of VAT obligations for distance sales of low-value goods imported into the EU with a total value of less than EUR 150, and the deemed supplier rules. The previously mentioned EUR 10,000 threshold was also introduced as part of this reform.

Furthermore, the e-commerce reform at the EU level expanded the Mini One Stop Shop (MOSS) system, established in 2015, into the upgraded One Stop Shop (OSS) system. And this upgrade was not cosmetic. In addition to two already established schemes, Union and Non-Union, a third scheme was introduced, so that the OSS now has:

• Union Scheme,

• Non-Union Scheme,

• Import Scheme.

VAT EU Reporting

Two types of reports are required concerning the supplies made throughout the EU territory:

1. EC Sales List, 

2. Intrastat.

EC Sales List

The EC Sales List (ESL) is submitted alongside the regular VAT returns. It refers to intra-EU sales made by Polish VAT-registered businesses. However, unlike in other EU countries, where the ESL applies only to sales, in Poland, companies must include purchases from other VAT-registered businesses established in an EU country. Therefore, in Poland, the ESL is known as the EC Sales and Purchases List return, or ESPL.

Intrastat 

Intrastat reports must be submitted by the 10th day of the month following the reporting period. Polish Intrastat rules define basic and detailed thresholds for arrivals and dispatches. The basic threshold for arrivals is PLN 6 million, and for dispatches, it is PLN 2.8 million. However, a more detailed Intrastat report is mandatory if arrivals exceed PLN 105 million and dispatches exceed PLN 158 million.

Digital Reporting

Local Businesses

In Poland, a B2G e-invoice system is in place, but it can be used voluntarily for any government-related transaction. Regarding B2B transactions, from February 1, 2026, large taxable persons with turnover exceeding PLN 200 million (approximately EUR 47 million) will have to issue and receive e-invoices. Starting April 1, 2026, other groups of taxable persons will be required to meet the e-invoicing requirements. This change will be facilitated by integrating the Krajowy System e-Faktur (KSeF), a national platform for e-invoicing, with the Platforma Elektronicznego Fakturowania (PEF).

Non-Resident Businesses

Non-resident businesses registered for VAT in Poland are subject to the same SAF-T rules applicable to local businesses.