Tax rates
Standard rate: 23%
Reduced 8% rate, e.g. for certain food products (coffee, tea, maté, spices, sugar, pastry, flour, sauces, gelatine etc.), certain restaurant and catering services, goods and services related with agriculture incl. plants, living animals and fertilizers, medicines and medical products, newspapers, certain municipal services, passenger transport services, lodging services, certain repair services, certain services regarding cultural and leisure activities;
Subject to 8% rate is also sales of residential estates with regard to their floorage of up to 150 m2 (flats) and 300 m2 (buildings) as well as maintenance works regarding those estates;
Reduced 5% rate, e.g. for books, e-books, local newspapers, sheet music and cartographic products, disks and data carriers, tampons, pads, diapers, pacifiers, car seats for children.
Supply of goods
Supply of goods and private use (self-supply) are taxable, as far as there are no exceptions
Place of supply of goods
In principle, wherever the object is situated at the time the power to dispose of the goods is acquired (static supply);
In the case of transport or dispatch by purchaser or supplier, where transport or dispatch begins (moving supply);
In the case of goods installed or assembled by the supplier, where installation or assembly takes place (supply with assembly);
Import from third countries: if supplier is liable for import VAT, his supply of goods is taxable in importing country;
Delivery during passenger transport by water, air or rail within the EU: point of departure;
Special provisions for chain and triangular transactions.
Supply of services
Supply of services and private use / supply of services without consideration (self-supply) are taxable, as far as there are no exceptions
Place of supply of services
A differentiation is made between services rendered
(a) to taxable persons (“Business to Business”, “B2B”) or
(b) to non-taxable persons (“Business to Customer”, “B2C”).
Basic rule
| B2B |
B2C |
| Place of recipient (the place where the recipient of services has established its business, meaning its residency or so called fixed establishment if located elsewhere) |
Place of supplier (the place where the supplier of services has established its business, meaning its residency or so called fixed establishment if located elsewhere) |
Special cases
|
B2B |
B2C |
| Supplies of services by intermediaries |
Place of recipient (basic rule) |
Place of the underlying transaction |
| Property services |
Place of the property |
Place of the property |
| Cultural, artistic, scientific, educational, sports, entertainment or similar services, like services in connection with fairs and exhibitions including services of the respective organizers |
Place of recipient (basic rule) |
Where the services relate to events that are transmitted or otherwise made available virtually - place where the non-taxable entity for which the services are provided has its registered office, permanent address or usual place of residence; otherwise - place where the services are carried out |
|
Admission and other related services for events like
fairs and exhibitions
|
In case the attendance is not virtual - place where these events actually take place: otherwise - place of recipient (basic rule) |
Where the services relate to activities that are transmitted or otherwise made available virtually - place where the non-taxable entity for which the services are provided has its registered office, permanent address or usual place of residence; otherwise - place where the services are physically carried out |
| Passenger transport |
Place where transport takes place, taking into account the distances covered |
Place where transport takes place, taking into account the distances covered |
| Transportation of goods (without intra-community portion) |
Place of recipient (basic rule); specific rules:
(a) where transport is wholly performed within Poland for the taxpayer established outside the EU - services taxable in Poland;
(b) where transport is wholly performed outside the EU for taxpayer established in Poland - services taxable outside the EU.
|
Distances covered;
specific rule for the purpose of application 0% VAT rate in Poland for international transport by sea or air
|
| Intra-community goods transportation |
Place of recipient (basic rule) |
Place of departure |
| Ancillary transport services |
Place of recipient (basic rule) |
Where the services are physically carried out |
|
B2B |
B2C |
| Appraisal and processing of movable tangible objects |
Place of recipient (basic rule) |
Where the services are physically carried out |
| Restaurant and catering services |
Where the services are physically carried out |
Where the services are physically carried out |
| Restaurant and catering services in connection with intra-community passenger transport |
Place of departure |
Place of departure |
| Renting of means of transport for up to 30 days |
Where the means of transport is actually put at the disposal of the customer |
Where the means of transport is actually put at the disposal of the customer |
| Renting of means of trasnport for over 30 days |
Place of recipient (basic rule) |
Place of recipient
Special regulations for renting pleasure boats
|
| “Listed services” to third country customers |
Place of recipient (basic rule) |
Place of recipient |
| “Listed services” to customers in the EU |
Place of recipient (basic rule) |
Place of supplier (basic rule) |
| Electronically supplied services, such as telecom, radio and TV services |
Place of recipient (basic rule) |
Place of recipient;
as of January 1, 2019: place of supplier in case the total revenue does not exceed the amount of EUR 10,000 in certain circumstances
|
Mini-One-Stop-Shop (MOSS) / One-Stop-Shop (OSS)
Currently taxable persons from an EU member state or third country – who provide electronically supplied services, telecom, radio and TV services to consumers within the EU – can, subject to certain conditions, make use of simplifications within the MOSS system. The taxable person will thereby only be registered for VAT purposes in the member state where the headquarters of the economic activity and/or fixed establishment are located.
As of July 1, 2021 a registration in the country of destination is not required anymore for the following services, because sales can be declared in one member state of the EU via the One-Stop-Shop (OSS) and VAT can be paid in a centralized way:
(a) B2C services taxable in the country of their use
(b) Supplies to consumers: turnover threshold is eliminated
(c) Imports to consumers: Import One-Stop-Shop (IOSS) is applicable for imports to consumers for goods with value of up to EUR 150; tax exemption for imports of goods with value of up to EUR 150.
Platforms: certain platforms are treated as if they received and delivered the goods by themselves (notional delivery); platform may become a tax debtor.
Reverse charge (reversal of tax liability)
Generally for transnational supplies of goods or services subject to certain conditions
Requirements
Supplier is a foreigner (no residence, no fixed establishment in Poland involved in providing the service).
Additional requirement: supplier is not registered for VAT in Poland - in case of certain provisions (supplies of goods in general, property services).
Customer is basically the entrepreneur or legal entity holding a VAT identification number; its establishment in Poland may be required as well in certain cases.
Consequences
Invoice without VAT, with note on reverse charge and both parties’ VAT registration numbers.
Customer is liable for VAT settlement.
Application also
N/A
as of November 1, 2019 construction services and areas susceptible to fraud are subject to mandatory 'split payment' mechanism instead
Tax reliefs
Exemption (Input VAT deductible even though no VAT chargeable on supply of goods and services)
According to Polish nomenclature this is actually 0% VAT rate (with input VAT deductible):
(a) Exports
(b) Intra-Community supplies
(c) Certain supplies of goods and services dedicated for sea and air transport
(d) Processing under contract on goods for export
(e) EU-border-crossing transport of goods
(f) Cross-border sea, air and rail transport of passengers
(g) Services directly related with import, export organization
(h) Supplies of goods under certain customs suspension arrangements
(i) Supplies of goods and services for EU institutions, international organizations etc.
Zero rates (“non-genuine” tax exemption) (Input VAT is not deductible)
According to Polish nomenclature this is actually VAT exemption (with input VAT non-deductible):
(a) Financial services, fund management services (with possibility to opt out for tax liability)
(b) insurance services
(b) sale of buildings or parts thereof, particularly where such sale is not performed within so called first settlement or during 2 years from first settlement (with possibility to opt out for tax liability),
(c) leasing of residential properties,
(d) certain cultural, educational, medical care services,
(e) sale of land not intended for development
(f) sales of small enterprises (net sales per calendar year not exceeding PLN 200,000; an option for tax liability is possible; certain activities cannot be exempted at all, e.g. lawyers, advisors, factoring services, sale of car parts etc.)
Deductible Input VAT
Generally, VAT invoiced to the business for the supply of goods and services and import VAT.
Acquisition, lease or rental and operation of passenger cars - deduction limited to 50% of input VAT (100% deduction in case of documented use solely for business purposes or as to certain types of vehicles due to their construction).
Non-deductible: VAT for supply of accomodation and catering services, basically imporoperly charged VAT in certain circumstances.
Deduction from expenses related both with business and non-business requires application of so called pre-factor.
Deduction from expenses related both with actvity subject to tax and tax-exempted requres application of VAT ratio.
Input VAT correction
If the circumstances which have been relevant for the input VAT deduction change materially, a corresponding positive or negative input VAT correction must be made.
Generally correction is made in the year following the year in which deduction took place. In case of fixed assets of initial value of more than PLN 15,000 (respectively major repairs thereof): the observation period for input VAT correction is 5 years and in case of properties - 10 years.
Real estate
Rentals
Rental for residential purposes is basically tax exempt.
Short-term rental for individuals and accomodation services are subject to 8% VAT rate.
Rental for commercial or non-housing purposes is basically subject to 23% VAT rate.
Sales
Basically, sale of real estate is subject to 23% VAT rate.
Reduced 8% VAT rate applies to sale of residential estates with regard to floorage of up to 150 m2 (flats) and 300 m2 (buildings).
VAT exemption applies as to sale of buildings or parts thereof where such sale is not performed within first settlement or during 2 years from first settlement or major repairs (with possibility to opt out for tax liability). Sale of buildings or parts thereof shall be VAT exempt also in case where the taxpayer had no right to deduct input VAT related with its purchase or major repairs.
If sale of real estate is VAT exempted, the purchaser will be obliged to pay 2% tax on civil law transactions (TCLT).
Refund of input VAT for Polish taxable persons within the EU
Electronic application (VAT-REF) has to be made by the Polish taxable person at its competent Polish tax office at the latest by September 30 of the following year. Separate applications are required for each member state.
Subject to regulations of member state of refund, the application may need to be accompanied by invoices or customs documents for certain amounts.
Basically minimum amount of refundable input VAT is: EUR 400 (EUR 50 if the refund period coincides with the calendar year).
Foreign taxable persons
Taxable persons with no place of business nor fixed establishment in Poland
Registration
Mandatory if performs activities taxable in Poland (according to rules on place of supply). Registration is not required, however, where reversal of tax liability towards the customer being Polish taxable person is possible (reverse charge).
Also, registration is not required particularly if the foreign taxpayer perfoms in Poland only certain supplies of goods or services for maritime and air transport industries.
Mandatory registration e.g. basically in case of performance of cross-border B2B supplies of goods from Poland (incl. export and intra-EU deliveries).
Refund of input VAT for taxable persons domiciled in the EU
If no sales is made in Poland, electronic application at the competent tax office in the EU member state (originating country) of the taxable person within the EU by September 30 of the following year at the latest.
The application has to be accompanied by copies of invoices or customs documents for net value at least EUR 1,000; in case of invoices on fuel purchase - for net value at least EUR 250.
Minimum amount of refundable input VAT is: EUR 400 (EUR 50 if the refund period coincides with the calendar year).
Refund of input VAT for taxable persons not domiciled in the EU
If no sales is made in Poland, refund has to be applied for by September 30 of the following year at the latest
Official form has to be applied to the competent Polish tax office (Naczelnik Drugiego Urzędu Skarbowego Warszawa-Śródmieście), subjective invoices and customs documents have to be submitted as well along with the certificate of VAT registration of applicant in the originating country. Minimum input VAT refundable: EUR 400 (EUR 50 if the refund period coincides with the calendar year)
Input VAT refund for Polish taxable persons within the EU
Electronic application to be made by the Polish taxable person at its competent Polish tax office at the latest by 30 September of the following year.
After approval of the application (within 120 days) refund to be made within 10 days.
Filing of original invoices is only necessary if required by fiscal authorities of the respective member state.
Minimum amount of refundable input VAT:
EUR 400 (EUR 50 if the refund period coincides with the calendar year)
Foreign taxable persons
Taxable persons without domicile or permanent establishment in Poland and without sales in Poland
Registration
Registration generally is required if sales are effectuated in Poland (some exemptions apply)
Input VAT refund for taxable persons domiciled in the EU
Electronic application at the competent tax office in the EU member state (originating country) of the taxable person.
Taxpayers are required to use the JPK_VAT7 file, sent electronically every month.
Input VAT refund for taxable persons not domiciled in the EU
Refund must be applied at the latest on 30 September of the following year (II Urząd Skarbowy Warszawa Ś ródmieście)
Official forms, accompanied by original invoices
Minimum refundable amount: EUR 400 (EUR 50 if refund period coincides with the calendar year)
Voluntary split payment
Voluntary mechanism of the way the PLN payments to contractors may be done. By applying this, the payment for the invoice is divided in two parts:
- the net value is paid to the contractor's main bank account,
- the VAT amount is transfer into the specially-dedicated VAT account.
VAT accounts are opened automatically and maintained for free.
The benefits from using the split payment mechanism include the possibility to receive refund of VAT into the VAT account within 25 days and to avoid negative fiscal consequences in some cases, e.g. the additional VAT liability.
Upon the taxpayer’s request, the funds collected in VAT accounts may be transferred into a regular account.
Obligatory split payment
The obligatory split payment mechanism applies to invoices covering transactions involving selected goods (eg. steel products, fuel, computers) and services (eg. construction, finishing, instalation works), between taxpayers, where the one-time amount, regardless of the number of payments made, exceeds PLN 15.000 or its equivalent.
Transactions, whose value does not exceed PLN 15.000 or does not cover selected goods and services, are subject to settlement on general terms, with the purchaser being able to decide whether to apply the split payment mechanism on a voluntary basis.
New regulations impose penalty of 30% VAT amount indicated on the invoice:
- on the issuer, if there is no annotation "split payment mechanism",
- on payer, if the payment is made without obligatory split payment mechanism.
White list
The taxpayers have to verify, prior to making a transfer to a given counterparty, whether the bank account number indicated on the invoice is disclosed on the white list of taxpayers. If the transfer is made by the buyer to a bank account undisclosed on the white list, and the counterparty (vendor) fails to pay the amount of VAT to the tax office, the buyer will be jointly and severally liable with the seller for the VAT shown on the invoice.
VAT groups
VAT group
- a group of entities related financially, economically and organizationally, registered as a VAT taxpayer.
VAT group may be formed by taxpayers
- having their seat in the territory of the country or
- non-established in the territory of the country, to the extent to which they conduct business activity in the territory of the country through a branch located in the territory of the country
An entity may be a member of only one VAT group. VAT group shall be formed for the period not shorter than 3 years.
VAT group may not be extended by other members or reduced by any of its members. Supplies of goods and services made by a member of a VAT group to another member of the same VAT group shall not be subject to VAT.
The National e-Invoicing System ("Krajowy System e-Faktur", KSeF)
The National e-Invoice System (KSeF) is a nationawide computer system that enables the generation and sharing of structured invoices. The main objective of KSeF is to centralise the process of registering invoices in business by directing them to one central location.
General information
Mandatory use of the KSeF and 'structured invoices' (in an XML format) for all B2B transaction from:
- February 1, 2026 - for taxpayers whose sales value (including tax amount) exceeds PLN 200 million in 2025
- from April 1, 2026 KSeF - for other taxpayers.
Exemptions
(a) consumer invoices (B2C),
(b) tickets functioning as invoices,
(c ) invoices issued under OSS and IOSS procedures.
Financial penalties
According to the latest assumptions, from 1 January 2025 penalties are to be imposed in three situations, i.e:
(a) when the taxpayer fails to issue an 'structured invoice' (i.e. an invoice using the KSeF) despite being obliged to do so,
(b) when, during a period of failure or maintenance of the KSeF, or unavailability of the KSeF, the taxpayer fails to maintain the required XML structure when issuing an invoice in the so-called offline mode,
(c) when, following a period of failure or maintenance of the KSeF, or unavailability of the KSeF, the taxpayer fails to send an invoice issued in so-called offline mode to the KSeF within the required period.
SME procedure (implementation of EU directive 2020/285 of 18/02/2020)
From 1 January 2025, changes were introduced for small enterprises with their registered office in other EU Member States, enabling the use of VAT exemption in Poland; similar exemptions were introduced for Polish entrepreneurs in other Member States, on the terms applicable in that country, without the need to register (registration in Poland is sufficient).
A taxpayer wishing to use VAT exemption in another EU Member State must comply with both the national VAT exemption limit (PLN 200,000) and the general EU limit of EUR 100,000. Exceeding either of these limits results in the loss of the right to VAT exemption in all EU countries. Limit of PLN 100,000 EUR refers to the taxpayer's total turnover throughout the EU, including domestic sales.
Taxpayers with their registered office in a Member State other than Poland are required to:
- notify the country of their registered office of their intention to use the exemption in Poland and
- obtain an individual identification number containing the code "EX" in the country of their registered office for the purpose of using the exemption in Poland before they start using it.
