Current VAT rates in Poland in 2024

The year 2024 brings several significant changes to the value added tax (VAT) system in Poland, which can significantly affect entrepreneurs. Understanding the current rates and their application across various industries is crucial not only for compliance but also for optimizing business costs. This article discusses both the applicable VAT rates and specific guidelines on registration and reporting obligations. Understanding these issues can help companies avoid mistakes and effectively manage the tax aspects of their operations.

VAT rates in Poland

There are four VAT rates in Poland. The standard VAT rate is 23%. There are also reduced VAT rates of 8%, 5%, and 0%. In addition, there are special VAT rates of 7% and 4%, which apply in certain situations.

All information on VAT rates and any potential changes can be found in the VAT Act of March 11, 2004, and its appendices. Additional information, including announcements and forms, is available on the website podatki.gov.pl.

1. Basic VAT rate in Poland

The basic VAT rate is 23% and applies to most goods and services that are not subject to reduced rates.

2. Reduced VAT rates

Reduced VAT rates apply to certain groups of products and services.

• 8% reduced rate: The 8% VAT applies to basic food products, selected medical and hygiene articles, renovations, construction and installation works, and catering services. Until December 31, 2024, certain products used in agricultural production, such as soil quality improvement agents and growing media, are also subject to 8% VAT.
• 5% reduced rate: This rate applies to specific food products and printed books and maps.
• Zero (0%) rate: This applies to intra-community supply of goods and export of goods.
3. Exceptional VAT rates
• 7% VAT: This rate applies to lump-sum VAT refunds for farmers benefiting from a uniform rate.
• 4% VAT: This includes services provided by taxi drivers. However, it is important to note that choosing this rate does not give you the right to deduct VAT.

Latest changes to VAT rates in Poland

Reduced rate for cosmetic services

As of April 1, 2024, certain cosmetic services are subject to a reduced VAT rate of 8%, down from the previous 23%. The reduced rate includes skin care and beauty treatments, manicure and pedicure services, and brow and eyelash styling.

Change in VAT rate in Poland for selected food products

Also as of April 1, 2024, the VAT rate for selected food products listed in items 1-18 of Annex 10 to the VAT Act has changed. Previously zero-rated food products are now taxed at a 5% rate.

More about the VAT rate change in Poland for food can be found in our article: The increase in the VAT rate on food from April 1, 2024.

VAT registration in Poland

VAT registration in Poland can be done in three ways:

• in person at the tax office,
• by mail,
• electronically, using the Biznes.gov portal. The electronic registration process requires submission of a VAT-R form as an attachment to the application for entry or amendment in the CEIDG.

When is registration required?

Individuals, legal entities, non-corporate organizational units, and persons running a business can become VAT taxpayers. The obligation to register arises in the event of exceeding the sales limit or making sales of certain goods and services.

Exemption from VAT

In the case of VAT exemption, taxpayers do not need to submit VAT declarations or settle the tax, but they do not have the right to deduct VAT. Exemptions may apply to non-taxable activities (subjective exemption) or be associated with not exceeding the sales limit (objective exemption).

VAT returns

VAT taxpayers can submit VAT declarations monthly or quarterly. The declaration submission procedure involves submitting the Standard Audit File (JPK), which also includes the VAT declaration. The conditions for submitting quarterly declarations apply to so-called small taxpayers and require that they have been active VAT taxpayers for at least 12 months.

VAT invoice data

A VAT invoice in Poland must contain several data, including the date of issue, a unique identification number for the document, the customer’s NIP (if they are required to pay VAT), the full name and address of the issuer and recipient, a description of the transaction, the VAT rate, the amount of VAT, and the unit price of the goods or services.

Tax penalties in Poland

As of 2024, penalties for tax offenses and fiscal misdemeanors in Poland have increased. The penalties range from 424 PLN to 84,840 PLN. The increase is based on the application of the minimum wage in Poland as a reference point.

A fiscal offense is defined by the Fiscal Penal Code and can lead to fines ranging from 141.40 PLN to 56,560 PLN. A fiscal misdemeanor can be punished with a fine ranging from 1/10 to twenty times the minimum wage. In 2024, the minimum penalty for a fiscal misdemeanor is 424 PLN, while the maximum is 84,840 PLN.

This article was prepared in cooperation with amavat®.

The company amavat® is part of the getsix® Group, offering comprehensive tax services in the area of e-commerce and VAT Compliance. amavat® combines accounting with IT solutions, facilitating integration with the largest sales platforms and optimizing accounting processes.

If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:

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CUSTOMER RELATIONSHIPS DEPARTMENT

ELŻBIETA
NARON-GROCHALSKA
Head of Customer Relationships
Department / Senior Manager
getsix® Group

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