Poland VAT Reform 2027: OSS Expansion & ViDA Update

Poland's Ministry of Finance has proposed changes to the VAT Law to align national legislation with EU Directive 2025/516, a core legislative act of the VAT in the Digital Age (ViDA) package. These amendments are part of a broader initiative to modernize VAT operations in an increasingly digital and cross-border economy.

Proposed Amendments and Implementation Timeline

The primary goal is to address gaps and practical issues that emerged after the EU’s 2021 e-commerce VAT reforms. As part of its broader digitalization agenda, Poland aims to make the system clearer and more efficient, particularly for businesses selling goods and services across borders. A major focus is expanding and refining the One-Stop Shop (OSS) system, which allows businesses to report and pay VAT across multiple EU countries through a single registration.

The proposed amendments also clarify the calculation of the PLN 42,000 threshold for intra-EU distance sales. This corresponds to the EU-wide unified net threshold of EUR 10,000 per year for all B2C cross-border sales of goods and digital services within the EU. These clarifications will help businesses better understand when they are required to apply VAT in other member states.

Poland’s VAT reform follows a phased timeline set by EU Directive 2025/516, with most changes taking effect on January 1, 2027. A second set of provisions will be adopted by mid-2029 and applied starting July 1, 2029. The Polish government is expected to approve the amendments in 2026, completing the parliamentary adoption before the end-of-year EU deadline.

During the transitional period, the current call-off stock regime will be phased out and replaced by the Transfer of Own Goods (TOOG) framework. Under the TOOG framework, effective July 1, 2028, businesses moving their own goods between EU countries can report transfers via an expanded OSS system (TOOG-OSS), significantly simplifying compliance.

Conclusion

This reform aims to remove the uncertainty businesses have faced since the earlier e-commerce VAT rules were introduced. Businesses and individuals operating in Poland should monitor the final adoption of these amendments to ensure no significant changes occur between the draft and final versions.

Source: Chancellery of the Prime Minister