Cash registers; Margin scheme; Reverse charge rollover; reduced rates
The Polish VAT Act is to be modified with a number of changes. This includes Polish reduced VAT rate changes. The amendments also introduce nuanced updates across several key areas, reflecting alignment with EU directives and modernisation of tax frameworks.
Extension of Reverse Charge Mechanism
The reverse charge for gas, electricity, and greenhouse gas emission allowances, initially set to expire on February 28, 2025, will now be extended until December 31, 2026. This aligns with EU Directive stipulations, continuing to shift VAT accounting responsibility from suppliers to purchasers in these sectors, mitigating carousel fraud risks.
Elimination of Fiscal Terminal Integration Mandates
The obligation introduced in 2021 to integrate fiscal cash registers with payment terminals, previously enforceable through fines, will be repealed. Recognizing technological limitations and the sufficiency of settlement agent data transmission, the amendment allows integration to evolve organically alongside advancements in terminal capabilities.
Subjective Exemption Expansion
Foreign taxpayers without a fixed establishment in the country may access subjective VAT exemptions, contingent upon compliance with EU thresholds and quarterly turnover reporting. Similarly, Polish taxpayers operating in other EU Member States may utilize exemptions, promoting harmonization across jurisdictions.
Revised Exemption Limit Calculation
While the PLN 200,000 subjective exemption threshold remains unchanged, its calculation will now encompass intra-Community supplies of goods and distance sales not subject to VAT domestically. Additionally, non-auxiliary reinsurance services will factor into the threshold, refining its scope.
Service Place of Supply Rules
From 2025, VAT for cultural, educational, and entertainment services provided virtually or broadcasted will be determined by the consumer’s location, aligning with existing electronic service taxation principles.
Cash Register Obligations and Object Exemptions
Exemptions for activities like vending machine sales or ticketing via automated systems will be abolished, mandating fiscal cash register recording for these transactions.
VAT Margin Scheme for Art and Antiques
Changes to the VAT margin scheme stipulate the basic VAT rate applies universally for art, collectibles, and antiques, superseding reduced rates unless explicitly applied at import or intermediary stages.
Poland VAT country guide
| Highlights | Local term | Podatek od towarow i uslug (PTU) |
| VAT Rates - standard | 23% | |
| Rates news | 2025 reduced rate changes | |
| VAT Rates - reduced | 8% ; 5%; 0% | |
| VAT number format | PL 1234567890 international transactions. 1234567890 for domestic only traders | |
| Registration threshold | PLN 200,000 for residents. Non-residents must register immediately. PLN 50,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions PLN 42,000 | |
| VAT Group | January 2023 | |
| VAT recovery foreign businesses | Yes, but requires reciprocity agreement for non-EU businesses | |
| Fiscal Representative | Required for all no-EU businesses (UK and Norway excluded) | |
| Currency | Zloty, PLN | |
| Administration | Introduction | VAT was introduced in July 1993 as part of Poland's preparations to join the EU. It joined the European Union 2004 |
| VAT laws | Ustawa o podatku od towarów i usług (UPTiU): VAT Act and Decrees from Ministry of Finance; Also EU VAT Directive which takes supremacy as part of EU membership | |
| Tax Authorities | Ministry of Finance | |
| VAT Rates | Standard rate | 23% |
| Rates news | 2025 reduced rate changes | |
| Reduced rates | 8% (Annex 3 to the UPTiU) basic foodstuffs; animals and related products; passenger transport; travel services; some entertainment services; restaurants and catering; certain labour-intensive services; books and newspapers; health services; hotel and overnight accommodation. 5% non-processed foods; certain agricultural supplies, e-books | |
| Zero-rated | Intra-community passenger travel by air and sea; Exports and intra-community supplies of goods; gold to central banks; e-journals published weekly | |
| Exempt | Education; financial services; health, hospital, and social welfare; postal; letting immovable property; betting and gambling; welfare services | |
| Scope of VAT | Scope of VAT | Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge |
| Time of supply | Goods & Services (general rule) | Goods at time of delivery or transfer of title. Services at time of provision - certain services when invoice issued or should have been issued. Advance payments when received will also be liable to VAT |
| Reverse Charge | Same as normal goods & services rules. May be deducted in customer's VAT return in period of supply or following period only | |
| Continuous Services | At time of provision or invoicing. Payments also trigger VAT tax point. If no invoice within one year, then VAT due. | |
| Imports | At time of clearance into Poland. Registered VAT payers (including Authorise Economic Operators) may use the VAT return reverse charge to avoid a cash payment of VAT | |
| Goods on approval and return | No special rules. Regular delivery or payment date determines tax point | |
| Registration | VAT registration threshold | PLN 200,000 for residents. Non-residents must register immediately. PLN 50,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions PLN 42,000 |
| Voluntary VAT registration | Not possible | |
| VAT number format | PL 1234567890 international transactions. 1234567890 for domestic only traders | |
| VAT Group | Not available. Proposal for introduction in 2022 | |
| Non-residents | Similar requirement to resident, but with no VAT registration threshold. The reverse charge is used (see separate section) on range of B2B goods as well as services | |
| Fiscal Representative | Non-EU traders must appoint a resident fiscal representative (must be accountant or customs agent) who is jointly and severally liable for their client's VAT. Exception is made where a mutual assistance agreement has been signed (e.g. the UK and Norway) | |
| Digital Services | Poland participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021 | |
| Pre VAT registration costs | Allowable in practise by tax office. Requires pre-registration VAT return supporting business-related inputs only | |
| VAT Invoices | Issuance | Invoice should be issued by 15th of the month following the provision of the supply. Advance invoices may not be sent out any earlier than 30 days before provision of goods or services. B2C invoices not mandatory unless requested. |
| Content | Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply; fiscal representative's details if applicable | |
| E-invoices | Poland mandatory B2B e-invoices 2026 | |
| Simplified invoices | Yes, for invoices not exceeding PLN 450 | |
| Self-billing | Permitted with agreement between the supplier and customer. | |
| Retention of invoices | Five years from the end of the tax year the invoice was issued - so up to six years. Ten years for supplies of broadcast, telecoms and electronic (digital services). Polish entities must retain paper invoices within the country or electronic out of the country if readably accessible. Non-residents may retain invoices outside of the country. | |
| FX rules | Can use other currencies, but VAT amount must be shown in zloty. The exchange rate of the previous day from the Polish National Bank (or ECB) should be used for conversion | |
| Invoice corrections | Correcting invoice should be issued for refunds and discounts, referring to original invoice. Customers may change invoices if they find errors via a Correcting Note referring to the invoice and reasons for adjustment | |
| Compliance | Right to deduct | Excluded: restaurant and accommodation; self-billing invoices unaccepted by the supplier |
| Call-off stock | Following the EU 2020 Quick Fixes reforms, non-residents may avoid VAT registration if delivering goods (Call off stock) on account to a single customer under their control but with no immediate change of title. The goods must be sold or returned within 12 months | |
| Reverse Charge - B2B | Applied on goods supplied by non-residents without a VAT registration to customers with a Polish VAT registration. No longer used on domestic supplies, instead use Split Payments (see separate section) on: natural gas and electricity; construction services; immovable property; waste; computers; mobile phones; investment gold, certain valuable metals; carbon permits for gas, electricity and green house emissions | |
| Cash discounts | No requirement to adjust invoices or returns if discount taken up | |
| Bad debt relief | 90 days following invoice payment deadline. Recovery via VAT return | |
| Import VAT deferment | Permitted by traders approved by customs. This includes being Authorised Economic Operator, and having no poor recent compliance issues. There is a further option for deferral of payment until 16th of the following month | |
| VAT warehouse | Poland operates public and private-owned bonded customs warehouses where goods may be traded VAT-exempt prior to import or reexport | |
| Supply & install | ||
| Use and enjoyment services | Not applicable on most services. In place for electronic, broadcast and telemcoms services. Also some passenger transport services. | |
| Capital goods adjustment period | Movable property: five years. Immovable property: ten years | |
| Non-residents VAT recovery | EU businesses may apply for Polish VAT reclaims through the electronic portal of the tax authorities of their company of residency (8th Directive). Quarterly claims above €400 permitted, with final claim above €50 by 30 Sept of following year. Non-EU businesses must submit a paper-reclaim with supporting invoices and statement of no Polish trading via the Polish authorities directly (13th Directive). This is only permitted if Poland has a reciprocity agreement with home country of claimant. | |
| VAT on Digital Services | Poland follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021) | |
| Live events | VAT registration required as VAT due locally | |
| Distance selling threshold for goods | Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Polish VAT must be charged on all sales by non-Polish EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Polish sales VAT with IOSS return option | |
| Cash accounting scheme | Yes, optional for small taxpayers € 2m annual turnover or less. VAT due only when cash paid but no later than 180 days from date provided. Intra-community supplies (including call-off stock) and vouchers excluded. | |
| VAT registered cash tills | Since start of 2023, retailers may only purchase internet reporting tills. But they may continue to use existing old tills until end of life cycle | |
| Statute of limitations | Five years following the end of the accounting period of the transaction(s) | |
| Other | Tax payers should only make invoice payments to other approved tax payers and approved bank accounts as per tax office's published 'white list'. Poland operates an optional Split Payment mechanism since July 2018 for paying VAT direct to locked bank account of customer. This is mandated for goods under risk of fraud since November 2019. The supplier's VAT bank account may then only be used to settle VAT liabilities with the state | |
| VAT Returns | Frequency | SAF-T (see separate section) replaces the VAT return from October 2020. SAF-T is filled monthly taxpayers by the 25th of the following month. Smaller taxpayers (PLN 550m) may file quarterly on application. There is no annual VAT return. |
| Filing method | Electronic only | |
| Deadlines (inc payments) | 25th of the following month | |
| VAT credits | May be refunded into bank account located in Poland only. Or rolled over to future returns with limit of five years. Refunds should be paid within 60 days unless audit raised | |
| Corrections | Only via corrective return (SAF-T) within 14 days, and should include late interest in case of extra VAT due. In the case of a refund, will require letter of correction requesting roll over or refund | |
| Non-residents | As per residents | |
| Other filings | Monthly European Sales Listing for goods and services supplies without any threshold. Intrastat monthly by the 10th of the following month for supply of goods above threshold: dispatches: PLN 2.8m; arrivals: PLN 6.2m. | |
| SAF-T | Polish SAF-T mandatory rules | |
| Penalties & interest | 8% interest on late payments. Further 30% charge for misstatement of VAT liabilities. This may be reduced for voluntary disclosure and/or rapid payment. PLN500 fine for individual errors in SAF-T resulting in VAT not being verified | |
| B2C Distance Selling returns | Poland participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021. |
