Poland VAT Guide: Rates, Registration, Invoicing & Compliance for Businesses

Poland VAT

Poland applies a comprehensive Value Added Tax (VAT) system, locally known as Podatek od towarów i usług, aligned with the European Union VAT directive. It is the primary form of indirect taxation in Poland, levied on the sale of goods and services both domestically and across borders.

This guide provides a complete overview of Poland’s VAT regime for essential for domestic and foreign businesses.

📊 Poland VAT Rates

Poland uses multiple VAT rates based on product/service categories:

📌 Standard Rate – 23%

Applies to most goods and services, including electronics, consulting, and clothing.

📌 Reduced Rate – 8%

Applies to certain food products, hotel services, medical equipment, and passenger transport.

📌 Super Reduced Rate – 5%

Applies to basic food items, books, newspapers, and baby products.

📌 Zero Rate – 0%

Applies to exports and intra-EU supplies under certain conditions.

🧾 Who Needs to Register for VAT in Poland?

🇵🇱 Domestic Businesses:

Must register for VAT if turnover exceeds PLN 200,000/year (approx. €46,000). Below this, they may opt for VAT exemption.

🌍 Foreign Businesses:

Must register immediately if they supply taxable goods or services in Poland (no threshold).

🏷️ Distance Selling (EU):

If sales to Polish consumers exceed €10,000/year, sellers must register under the OSS scheme or directly in Poland.

🔢 Polish VAT Number Format

• Format: PL1234567890
• It consists of the country code PL followed by 10 digits.

All VAT-registered businesses must display this number on invoices and use it for filing.

🧾 VAT Invoice Requirements in Poland

Invoices must include:

• Invoice number and issue date
• Seller’s name, address, and VAT number
• Buyer’s name, address, and VAT number (for B2B)
• Description of goods/services
• Quantity and price
• VAT rate and amount
• Net and total amount
• Supply date (if different)

Electronic invoicing is allowed and mandatory in B2G (business-to-government) transactions via the Polish e-invoicing platform (KSeF).

💡 VAT Calculation Example

A Polish company provides design services for PLN 10,000 at 23% VAT:

• VAT = PLN 2,300
• Total Invoice = PLN 12,300

The VAT is payable to the Polish Tax Authority on the next filing date.

📆 Filing VAT Returns in Poland

• Frequency: Monthly or quarterly depending on the business size
• Filing Method: Electronically via the Ministry of Finance’s online platform

Deadlines:

• Returns: By the 25th of the following month
• Payment: Also due by the 25th

Late returns or payments can result in penalties and interest.

🌍 Cross-Border VAT in Poland

• Intra-EU B2B Sales: 0% VAT with valid VAT number and proof of transport
• Intra-EU B2C Sales: VAT collected via OSS for distance sellers
• Imports: VAT due at customs unless deferred accounting applies
• Exports (non-EU): 0% VAT if proper documentation is maintained

❌ VAT Exemptions in Poland

Certain supplies are exempt from VAT, such as:

• Health and medical services
• Financial and insurance services
• Educational services
• Certain real estate sales
• Postal services

Businesses providing only exempt supplies generally cannot reclaim input VAT.

🌐 VAT Refunds for Foreign Businesses

• EU Companies: Use the EU 8th Directive through their national tax portal
• Non-EU Companies: Apply under the 13th Directive to the Polish tax authority, potentially requiring a Polish tax representative

✅ Poland VAT Compliance Tips

• Ensure timely VAT registration (especially for foreign sellers)
• Use Poland’s KSeF e-invoicing platform for B2G and voluntary B2B
• File VAT returns and make payments by the 25th of each month
• Maintain complete accounting records for 5 years
• Use the EU VIES tool to validate B2B VAT numbers
• Consider OSS registration for cross-border eCommerce

📌 Conclusion

Poland’s VAT system is structured, modernized, and compliant with EU VAT rules. Businesses operating in Poland should understand their VAT obligations, including rate application, invoicing, return filing, and cross-border regulations to avoid compliance risks and ensure smooth operations.

👉 Use our free 🇵🇱 Poland VAT Calculator to get instant and accurate VAT computations based on the latest rates.