Poland broadly follows the value added tax (VAT) compliance rules of the European Union (EU) VAT Directive. Poland can set its own VAT rate however, provided it’s above 15%. The standard VAT rate in Poland is 23%. There are also two reduced VAT rates of 8% and 5%.

Suppliers of goods or services VAT registered in Poland must charge the appropriate VAT rate, and collect the tax for onward payment to the Polish tax authorities through a VAT filing. More details on Polish VAT rates are below:

The National Revenue Administration — or Krajowa Administracja Skarbowa (KAS), in Polish — is responsible for enforcing tax compliance rules and overseeing the collection of tax revenue. KAS also provides service and support for taxpayers in Poland in fulfilling their tax obligations. 

Non-resident businesses providing taxable supplies in Poland are required to comply with local VAT rules and rates in order to fulfil their VAT obligations. In terms of accounting and recording, this covers:

• Preparing invoices with the disclosure details outlined in the Polish VAT Act

• Electronic invoices with proper signature, authenticity, and agreement by the recipient

• Maintenance of accounts and records, which must be held for at least eight years

• Correct invoicing of customers for goods or services in accordance with the Polish time of supply VAT rules

• Processing of credit notes and other corrections

• Use of approved foreign currency rates

How businesses submit VAT returns is different to most other countries with VAT systems, including EU member states.

Businesses must file a Standard Audit File for Tax (SAF-T) on a monthly basis. An SAF-T is a collection of data taken from the taxable company’s IT and business systems, including details of their operations for the relevant tax period. All businesses registered for VAT in Poland must file SAF-T returns electronically.

Foreign businesses without an obligation to register for VAT in Poland can apply for a VAT refund through a VAT-REF claim. Both EU and non-EU businesses can claim a VAT refund. The application deadline is September 30th of the year after relevant purchases were made.

The tax point (time of supply) rules in Poland determine when the VAT is due. It’s then payable to the tax office seven days after the VAT reporting period end (monthly or quarterly).

For most goods, it’s the time of delivery or passage of title. For services, it’s the completion of the service.

Non-EU businesses selling in Poland will need to appoint a fiscal representative alongside completing VAT registration and returns. Fiscal representatives are responsible for the accurate VAT submissions of their non-EU clients.

Avalara offers a Fiscal Representative Service as part of its international VAT and GST Registration and Returns Service.

Researching VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.