|
Poland joined the European Union VAT regime in 2004, and is part of the EU single market economy. VAT was first introduced in Poland in July 1993. VAT Directives, issued by the EU, lay out the principles of the VAT regime to be implemented by each member state. These Directives take precedent over the Polish VAT legislation where there may be conflict.
Click here for free guidance on Polish VAT compliance - including mandatory fiscal representation
Poland VAT Law
Polish VAT is overseen by VAT Acts and the Fiscal Penal Code, and is enforced by The Ministry of Finance (Ministerstwo Finansow).
polish VAT Registration
Foreign companies from inside or outside the EU may register for VAT in Poland without the requirement to incorporate a Polish company or form a permanent establishment – known as non-resident VAT trading. There is no VAT threshold in Poland for non-resident traders – a VAT number must be in place before the commencement of taxable supplies. There is some limited flexibility for reclaiming Polish VAT incurred prior to the registration, but potential fines may be high. In Poland, a fiscal representative is required for the VAT registration of a non-resident trader.
There are strict rules on the situations where a registration is permitted. Common scenarios which require a Poland VAT registration include:
- Importing goods into Poland;
- Organising live events, conferences etc in Poland;
- Selling goods from Poland to other EU countries; and
- Distance selling to private individuals living within Poland, e.g. internet sales.
Registering for VAT in Poland generally takes three weeks, although this can vary.
Click here for free guidance on Polish VAT registration
polish VAT Compliance
There are detailed rules controlling the recording and processing of Polish transactions. These include guidelines on:
- Invoice requirements, including electronic invoices;
- Foreign currency reporting, rates and translation;
- Correcting errors from previous returns;
- Credit notes and corrections; and
- What accounting records must be maintained.
In Poland, there are strict rules on the layout and format of VAT records to be kept by companies or their tax agents.
poland VAT Rates
The standard VAT rate in Poland is 23% since January 2011. There are reduced rates of 8% and 5% on certain food, books, newspapers and the supply of a limited number of other services. A number of services are exempt from Polish VAT, such as financial and postal services.
Click here to read about the 1% increase in Polish VAT in 2011
There are many variations to the rates above, including exempt taxable supplies. Please contact us to learn more:
enquiries@tmf-vat.com
poland VAT Returns
Businesses with a Polish VAT number must submit periodic payments. VAT filings and payments are submitted either monthly or quarterly. If quarterly, then prepayments are required during the period. Any Polish tax credits should be paid within 60 days (or 180 days if no taxable supplies), but typically take much longer if a tax audit is required.
polish Intrastat
In addition to VAT returns in Poland, companies may be required to submit additional statistical information. Polish Intrastat, which lists sales (dispatches) and purchases (acquisitions), within the EU region, must be filed monthly once the annual threshold is exceeded.
Click here to check current Polish Intrastat thresholds.
poland VAT Refunds
If a foreign business is providing taxable goods or services in Poland, but cannot to obtain a VAT number, or is incurring Polish VAT on local goods or services, then VAT may be recovered through a VAT reclaim.
From the 1st of January 2010, VAT refund applications are made through the Tax Authorities of the applicant’s home country.
Click here to be put in touch with our Polish VAT team for free guidance
TMF has offices in Warsaw and Katowice as well as 35 other offices in Europe and 87 worldwide. For enquiries about our international VAT services, please contact our UK global co-ordination centre:
enquiries@tmf-vat.com
+44 (0)870 067 8881
|
