The VAT Rate in Poland
In Poland the standard VAT rate is 23% since 2011. Like any other country, Poland also has lower VAT for certain products or services.
A reduced VAT rate of 8% applies in Poland for the following goods and services:
In addition there is a reduced VAT rate of 5% for goods like dairy products, meat, poultry and fish. There are also several services exempted from VAT in Poland, like export of goods, intra-community supply of goods, international transport services or supplies of aircrafts and sea vessels. A special regime is also in order for financial, education, cultural, healthcare and social services. Please contact our law firm in Poland in order to receive personalized consultancy.
VAT Registration in Poland
If an entrepreneur wants to see if his company is subject to VAT, all he need to do is to look at his company’s annual turnover. If this is less than 50,000 PLN (11,900 EUR), there is no need for VAT registration in Poland. However, if it is above this value, he must proceed for VAT registration with the local Polish Tax Authorities in order to obtain the registration number.
The procedure can be done immediately after obtaining the registration certificate from the National Court Register. There are several documents that must be contained in the application for registration like for example an excerpt from the company foundation deed, the registration certificate and a standard form completed by the company’s managers.
There are no specific penalties for late registration, but eventually this will lead to underpayment of VAT, in which case the Polish tax Authorities may impose a penalty up to approximately 15,36 million PLN (3,6 million EUR). When registration is finally made, the entrepreneur will, of course, have to pay for all taxable transactions happened during the period it was required to be registered.
VAT Refund in Poland
For receiving VAT refund in Poland, an entrepreneur must fill in an application to the Head of the Second Tax Office Warszawa. The application has to be completed in Polish and submitted before the 30th June of the following year. It cannot be submitted for a period shorter than three months or longer than one year. The minimum amount of requested refund should be above 200 euros if the application is for three months or 25 euros for one year. After the authorities verify the claim, the VAT will be recovered.
The intra-community VAT in Poland
If an entrepreneur intends to perform intra-community transactions he must notify the head of the Tax Office of his intention before performing the first supply or acquisition of goods to or from another company in a Member State of the EU. He will be doing that by submitting a registration notification form. This way, the company will be registered as EU tax payer and confirm its status in order to perform the transaction. The acquisition of goods will be taxed in Poland. If the goods are transported to another Member State, VAT must be paid there.