COUNTRY GUIDES / Poland

Poland tax guide for businesses

VAT Rate
23%
E-Invoicing
B2G Mandatory
Real-Time Reporting
Partially Mandatory
Digital Service Tax
Yes
Products supported
Lookup
Tax ID validation
Tax
Tax amount calculation
Invoicing
Compliant invoice generator
Reporting
Real-time transaction reporting

Compliance And Rates

VAT Number Format In Poland

All EU member states have a fixed format for their VAT numbers. In Poland, it includes 10 digits and the prefix PL (e.g., PL1234567890).

VAT Rates In Poland

The standard VAT rate in Poland is 23%, with reduced rates of 8% and 5% on certain goods and services. Some services are exempt from Polish VAT, such as financial and postal services.

  • 23% (Standard) – Applies to all taxable supplies, with certain exceptions
  • 8% (Reduced) – Some foodstuffs, medical products, restaurant and hotel services, and supplies covered by the social housing policy
  • 5% (Reduced) – Some foodstuffs (e.g., bread, dairy products, meats), certain kinds of printed books
  • 0% (Zero) – Applied to, e.g., supplies of certain vessels and aircraft, services related to air and sea transport, international transport services, services related to import and export of goods

VAT Payments And Returns In Poland

All businesses with a Polish VAT number must submit periodic VAT reports and payments.


VAT Returns Frequency In Poland

For all companies that operate in Poland, VAT returns must be submitted monthly or quarterly, depending on the annual revenue of the business entity.

  • Monthly – by the 25th of the following month for “large taxpayers” with an annual revenue higher than EUR 1,200,000.
  • Quarterly – by the 25th of the following month for “small taxpayers” with annual revenue less than EUR 1,200,000.

Penalties in case of late filings or misdeclarations

In the case of the late filing of VAT returns and payments, the Polish government prescribed the penalties as follows:

  • Non-registration and/or late registration are subject to fines of PLN 210 – PLN 42,000.
  • Non-payment and/or late payment of the VAT may lead to the following penalties:
  • Obligation to pay the amount of VAT due along with penalty interest (currently 8% per annum)
  • Additional VAT liability (penalty) amounting to 30% of the amount of VAT arrears not settled
  • Fines (PLN 210 – PLN 42,000) – if the taxpayer persistently does not pay taxes.
  • Submission of incomplete and/or incorrect VAT returns, non-submission, and/or late submission of VAT returns is subject to fines up to PLN 20,160,000 or potential imprisonment if non-compliance leads non-payment of VAT.

Invoice Requirements

Invoices must contain at least the following information:

  • date of issuance
  • a unique, sequential number of the invoice
  • supplier data (company name, address, tax number)
  • customer data (address and other data if available, tax number)
  • date of invoice issuance or delivery
  • full description of goods and services provided
  • quantity of goods and services provided
  • net price per unit
  • any discounts, ancillary costs, and expected expenses (if applicable)
  • the net, the taxable value of the invoice
  • rate and amount of VAT applicable for the category of goods and services provided
  • the invoice total, the gross amount


Penalties for non-compliance with invoicing and accounting obligations

The penalties depending on the type of non-compliance:

  • Failure to keep VAT registers or keeping them not in accordance with law is subject to a fine of up to PLN 6,720,000.
  • Failure to issue invoices or issue them not in accordance with law is also subject to a fine of up to PLN 5,040,000.

Issuing false invoices or using them is subject to a fine up to PLN 20,160,000 or potential imprisonment.

E-Invoicing

From 2020, all suppliers billing the Government must submit their invoices electronically. For B2B and B2C transactions, issuance of invoices electronically is permitted, but still not mandatory.

However, there are many rumors that Poland is already working on the framework based on Italian e-invoicing regulations. Those rumors claim that Poland will introduce mandatory B2C and B2B e-invoicing and real-time reporting as an additional move to reduce the VAT gap.

Digital Service Tax (DST)

As of July 2020, Poland approved and introduced a Digital Service Tax. Digital Service Tax shall be calculated by applying the 1.5% rate to the taxable revenues obtained by the taxable person during the calendar year.

The Polish digital tax hits digital transactions such as audiovisual media service and audiovisual commercial communication.

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