VAT in transport services in Poland: Rates, rules, and documentation obligations

Value Added Tax (VAT) in the transport sector is one of the key areas affecting financial liquidity, regulatory compliance, and the competitiveness of businesses operating in this industry. This results from the specific nature of transport activities, which often involve providing services to domestic, EU, and non-EU clients. Each of these cases may entail different tax implications.

Due to varying VAT rates and complex rules concerning the place of supply, companies in the TSL sector (Transport – Shipping – Logistics) are required to precisely identify the type of transport services they provide and properly document their nature. In practice, this means not only being familiar with applicable national and EU regulations but also interpreting them correctly in the context of each individual transaction. In this regard, professional accounting for transport companies becomes extremely important, as it helps avoid costly errors and ensures compliance with the law.

Incorrect classification of a service or misidentification of the place of taxation may lead to serious consequences, including corrections of VAT returns, tax penalties, and the risk of fiscal penal liability. Moreover, errors in this area can also affect business relationships with clients, especially in the context of international transactions, where differences in approaches to documentation and settlement may result in disputes or payment delays.

For this reason, correct VAT settlement in transport should be regarded as part of a company’s strategic approach to managing tax and financial risks. Regardless of whether the company operates domestically, within the EU, or internationally, understanding VAT rules is not only an obligation, but also a tool supporting operational efficiency and transparency.

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Fundamentals of VAT taxation of transport services in Poland – definitions and general rules

The taxation of transport services under the Value Added Tax (VAT) system is based on several legal norms deriving from the VAT Act, implementing acts, and EU legislation, in particular Directive 2006/112/EC. Understanding the basic definitions and general rules is essential for correct VAT settlement in operational activities.

Definition of a transport service

Under Polish VAT law, a transport service is understood as the movement of goods or persons from one place to another using means of transport. This definition includes both services provided directly by a carrier and services performed by subcontractors. For the transport of goods, it is also important to take into account auxiliary activities such as loading, unloading, reloading, and storage if they are an integral part of the service.

Tax point

According to the general rule under Article 19a of the VAT Act, the tax obligation for transport services arises at the moment the service is performed. For continuous services, such as transport provided regularly or under long-term contracts, the tax obligation arises at the end of each billing period (e.g. monthly), if such periods are specified in the agreement.

Place of supply

One of the most important issues in VAT taxation of transport services is the correct determination of the place of supply. For services provided to taxable persons (B2B), the place of supply is generally determined under Article 28b of the VAT Act, i.e. the place where the recipient has established their business. For services provided to consumers (B2C), different rules apply as set out in Article 28f.

For the transport of goods and passengers, special provisions also apply – the place of taxation may depend on the route taken, the length of domestic and foreign segments, and the nature of the recipient.

Classification of VAT rates in Poland

Transport services are not subject to a single, uniform VAT rate. Regulations differentiate the rates depending on the type of transport (goods vs. passengers), territorial scope (domestic, intra-community, international), and the fulfilment of formal conditions, such as transport documentation. For domestic and intra-community transport, the standard rate is 23%. International transport, under certain conditions, may be subject to a 0% rate. Passenger transport typically benefits from a preferential rate of 8%.

Documentation as a condition for applying a rate

The application of reduced VAT rates or exemptions depends on the proper documentation of the provided service. For international transport, it is necessary to have, among others, consignment notes (CMR), transport orders, customs or freight forwarding documents. Lack of complete documentation may result in the need to apply the standard VAT rate and a tax correction.

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Domestic transport in Poland – when the 23% VAT rate applies

Transport services performed entirely within the territory of the Republic of Poland are subject to the standard VAT rate of 23%. The application of this rate results from the general principle of taxing supplies of goods and services carried out within the country, in accordance with the Act of 11 March 2004 on Value Added Tax (Journal of Laws 2023, item 1570, as amended).

The 23% rate applies to both the transport of goods and passenger transport, provided the entire service is carried out within Polish borders and no conditions are met that would allow for the application of a reduced rate (e.g. 8% for passenger transport on intercity routes).

What services fall under domestic transport in Poland

Domestic transport covers all transport services carried out entirely within Poland’s territory, without crossing national borders. This applies to:

• the transport of goods performed by lorries, rail, inland waterway, or air transport, provided that both loading and unloading take place in Poland;
• passenger transport, provided the route is fully within the country and the service does not meet the conditions for a reduced VAT rate (e.g. it is not covered by a collective ticket as defined in the regulation on reduced VAT rates).

It is important to emphasise that if even one segment of the transport takes place outside Poland, it no longer qualifies as domestic transport. In such cases, the service must be analysed separately in the context of international or intra-Community transactions.

Documentation required for correct VAT settlement in Poland

To correctly apply the 23% VAT rate to a domestic transport service, the taxpayer must hold documentation confirming the place of commencement and completion of the transport, the nature of the goods (or passenger) transported, and the date the service was provided.

The essential documents that should be gathered and retained for evidentiary and audit purposes include:

• VAT invoice – issued in accordance with Article 106e of the VAT Act, specifying the transport service in detail (including the client’s details, route, service date, rate and tax amount);
• transport order – a contract between the ordering party and the carrier, defining the scope of the service;
• transport document – in the case of goods transport, this is usually a national consignment note (CMR) confirming the course of the transport and the dates of loading and unloading;
• proof of delivery or service completion – this may be an acknowledgment of receipt from the client, a handover protocol, or an electronic signature from the client in a telematics system;
• any supplementary documents, such as GPS reports, tachograph charts or other operational data confirming that the service was performed on Polish territory.

Failure to maintain proper documentation may result in the tax authorities questioning the applied VAT rate, which entails the risk of financial penalties and the obligation to correct VAT settlements.

For audit purposes and potential tax inspections, it is recommended to maintain records of transport documentation in a manner that allows for easy correlation with specific sales invoices.

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Intra-Community transport – rules for applying the 23% VAT rate in Poland

Intra-Community transport is one of the fundamental forms of freight activity carried out by entities in the TSL sector within the single European Union market. Services involving the movement of goods between EU Member States, despite the absence of customs borders, are subject to tax regulations arising both from EU law and the Polish VAT Act.

As a rule, the transport of goods provided to taxpayers established in Poland, where carriage begins in one Member State and ends in another, is subject to the 23% VAT rate, unless there are grounds to consider the service as provided outside the territory of Poland.

Transport of goods between EU countries

Intra-Community transport of goods refers to the movement of cargo between the territories of two EU Member States. The key criteria for classifying a service as intra-Community are both the physical crossing of goods across EU country borders and the VAT status of the service recipient.

Where the recipient is a taxable person established in an EU Member State other than Poland, the place of supply is determined under the general rule set out in Article 28b of the Polish VAT Act, i.e. the country in which the recipient conducts business. In such cases, a Polish service provider does not charge VAT in Poland but issues an invoice with the “NP” (not subject to VAT in Poland) annotation, provided that the recipient has a valid EU VAT number. In practice, this triggers the reverse charge mechanism, meaning the VAT is settled by the recipient.

However, if the service recipient is established in Poland or does not hold a valid EU VAT number, and the service is actually performed by a Polish provider, VAT at the standard rate of 23% may be applicable.

Tax obligations and the moment VAT becomes due

From a tax perspective, providing intra-Community transport services involves a range of documentation and record-keeping obligations. The key responsibilities include:

• Verifying the recipient’s status – the service provider must check whether the customer is registered as an EU VAT taxpayer, which can be confirmed via the VIES (VAT Information Exchange System);
• Proper invoice issuance – the invoice must include a reference to the reverse charge mechanism, the VAT numbers of both parties, and a detailed description of the transport service including the transport route;
• Supporting documentation – it is necessary to retain documents proving the actual movement of goods between Member States, such as CMR consignment notes, transport orders, delivery confirmations, and any relevant telematics system reports;
• Sales records and VAT reporting – the Polish taxpayer providing the transport service must declare the transaction in the appropriate sections of the VAT return and, if applicable, in the EC Sales List (VAT-UE).

The tax liability arises in accordance with the general rule provided in Article 19a of the Polish VAT Act – at the time the service is performed, i.e. upon completion of the transport. In the case of continuous services, the liability arises at the end of the agreed billing period, e.g. month or quarter, if such periods are specified in the contract.

Due to possible variations in interpretation concerning the place of supply, it is recommended to analyse each contract individually – taking into account the route, the VAT status of the service recipient, and the method of documentation. This ensures not only correct VAT settlement in Poland but also reduces tax risks in the event of an audit by the Polish tax authorities.

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International transport – when the 0% VAT rate may apply in Poland

International transport of goods, understood as transport carried out between the territory of Poland and a third country (outside the European Union), may be subject to the preferential 0% VAT rate, provided that the formal and material conditions set out in the Polish VAT Act are met. The application of this rate is not automatic and requires precise documentation of the nature of the service and the direction of the movement of goods.

Criteria for applying the 0% VAT rate

According to Article 83(1)(23) of the Act of 11 March 2004 on Value Added Tax (VAT) in Poland, the 0% VAT rate may be applied to goods transport services if:

• the transport of goods starts or ends outside the European Union (i.e. involves a third country);
• the service relates to international transport carried out directly in connection with the export, import, or transit of goods;
• the transport is physically performed or subcontracted by a Polish entity registered as an active VAT taxpayer in Poland;
• the taxpayer providing the service holds appropriate documentation confirming its international character.

It should be emphasised that failure to meet any of the above conditions requires the application of the standard VAT rate of 23%. The Polish legislator has adopted a strict approach to documenting such transactions to prevent abuse in cross-border taxation.

Documentation requirements – consignment notes, forwarding orders, and more

A prerequisite for applying the 0% VAT rate in Poland is that the service provider possesses documents clearly confirming that the transport:

• concerns the movement of goods from or to a third country (i.e. outside the EU);
• was actually carried out – meaning that physical transport took place.

Such documents include in particular:

• international consignment note (CMR) – containing signatures of the sender, carrier, and consignee, confirming the physical execution of the transport on an international route;
• freight forwarding order or transport contract – confirming the scope and conditions of the service;
• customs documents – including export declarations (e.g. IE-599), SAD (Single Administrative Document), confirming that the goods were placed under an export procedure;
• sales invoice – including details of the contractor, loading and unloading locations, the application of the 0% VAT rate, and legal grounds for its application;
• proof of receipt of goods in the third country – such as a delivery confirmation, warehouse document, or other evidence indicating the point of delivery.

If documentation is incomplete or if there are doubts regarding the actual execution of transport, Polish tax authorities may question the application of the 0% VAT rate and require a correction using the standard 23% rate.

Examples of application – Poland ↔ Ukraine, Poland ↔ China

Example 1: Transport from Poland to Ukraine
A Polish carrier receives an order to transport goods from a warehouse in Rzeszów to a consignee in Kyiv. The service is provided directly to the exporter, and the transport crosses the border at the Dorohusk crossing. The carrier holds:

• a CMR consignment note,
• a transport order,
• an export declaration (IE-599),
• proof of delivery to the recipient.

In this case, all conditions for applying the 0% VAT rate in Poland are fulfilled.

Example 2: Transport from China to Poland
An importer based in Gdynia commissions the transport of a container from the port of Shanghai to a terminal in Poland. The service is provided by a logistics company organising sea freight and customs handling. The freight forwarder holds transport documents (including a bill of lading), a SAD import declaration, and a purchase invoice. Provided that the transport is directly related to the import of goods into the EU, the service may be subject to the 0% VAT rate, provided that the transport and customs processes are properly documented.

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Place of supply of transport services – a key element of VAT settlement in Poland

The correct determination of the place of supply for a transport service is one of the fundamental aspects of accurate VAT settlement in Poland. The place of supply determines in which EU Member State (or outside the EU) VAT should be charged and remitted. An error in determining the place of supply results not only in incorrect taxation but also in the risk of tax liability, the need for corrections, and potential sanctions.

In the case of transport services, the method for determining the place of supply depends on the type of service (goods or passenger transport), the status of the recipient (taxable person or consumer), and the territorial scope of the service (domestic, intra-Community, or international).

How to determine the place of supply

According to the provisions of the Polish VAT Act and Directive 2006/112/EC, the place of supply of a transport service is determined based on the following rules:

a) Services provided to taxable persons (B2B)
Under Article 28b of the Polish VAT Act, the place of supply for the transport of goods and passengers to taxable persons is the place where the recipient has established their business or has a fixed establishment to which the service is supplied.
This means that in typical B2B relationships, the service may not be taxable in Poland, even if its physical execution takes place within Polish territory – provided the customer is established in another EU Member State or outside the EU.

b) Services provided to consumers (B2C)
Different rules apply to transport services supplied to individuals not engaged in business activities:

• For goods transport, Article 28f(1) of the Polish VAT Act states that the place of supply is determined based on the actual transport route, proportionate to the distance travelled;
• For passenger transport, Article 28f(2) provides an analogous rule – the place of supply is based on the distance covered in each country.

In practice, this requires dividing the service accordingly and allocating it to the appropriate tax jurisdictions.

Exceptions and legal nuances

The rules on the place of supply for transport services include several exceptions and nuances that may be important in practical application:

• Ancillary services to transport – if the service is ancillary in nature (e.g. loading, unloading, transshipment), the place of supply is determined according to the rules applicable to the main transport service. If treated as separate, different rules may apply.
• International transport linked to export or import – if transport relates directly to the export or import of goods (e.g. from China to Poland), the place of supply may be outside the EU, even if part of the route passes through EU territory.
• Fixed Establishment – if the taxpayer has a branch or permanent establishment in another country, the place of supply may be attributed to that location rather than the head office. This requires an assessment of the involvement of the branch in receiving the service.
• Division of services by segment – in the case of transport carried out in multiple countries, the service must be taxed proportionally in each country based on the distance travelled. This is particularly relevant for passenger transport or multi-leg freight services.
• Mixed status situations (recipient as both taxable and non-taxable) – where the service recipient has both the status of a VAT taxpayer and a consumer (e.g. an individual conducting business but not providing their EU VAT number), the place of supply must be assessed individually based on the purpose of the service and the information stated in the contract.

For the above reasons, before starting the provision of transport services – especially from or within Poland – it is recommended to carry out a detailed analysis of the recipient’s VAT status, the route of transport, and the purpose of the service. A best practice in Poland is to draft clear commercial arrangements (e.g. a transport order or framework agreement) that explicitly define the service conditions and the contractor’s details, including their EU VAT number.

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Practical case study: VAT settlement in three business models in Poland

To better understand the principles of VAT settlement in transport services, the following presents three model operational scenarios based on current Polish regulations, VAT classifications, and documentation requirements. Each example reflects a different territorial scope and type of transport service, illustrating various practical scenarios relevant to Poland.

Polish haulier providing services within the EU

Business profile:
A spółka z o.o. (limited liability company) based in Poland provides heavy goods transport services on the route Poland – Germany – Netherlands – Belgium, acting on behalf of foreign contractors holding valid EU VAT numbers.

VAT settlement:
According to Article 28b of the Polish VAT Act, the place of supply for transport services provided to a taxable person is the location where the recipient is established. In this case, since the recipients are established in other EU Member States and have valid EU VAT numbers, the service is not subject to VAT in Poland.

Formal requirements:

• issuing an invoice without VAT (with the annotation “reverse charge”),
• reporting the transaction in the EC Sales List (VAT-UE),
• no obligation to pay VAT in Poland, but the provider must retain documentation confirming the actual execution of the transport.

Notes:
It is essential to exercise due diligence when verifying the VAT numbers of contractors in the VIES system and to document the transport route thoroughly (e.g. CMR consignment note, transport orders, delivery confirmations).

Freight forwarder organising transport from China to Poland

Business profile:
A Polish freight forwarding company organises full-container transport of goods from the port of Shanghai to the client’s warehouse in Łódź. The service includes sea freight, customs clearance at the port of Gdańsk, and road delivery within Polish territory.

VAT settlement:
The overall service constitutes international transport linked to the import of goods. Under Article 83(1)(23) of the Polish VAT Act, the 0% VAT rate may be applied provided that the service directly relates to the import of goods and the taxpayer holds complete supporting documentation.

Required documentation:

• transport documents (e.g. bill of lading, CMR),
• customs documents (SAD, import declaration confirmation such as IE-599),
• freight forwarding order confirming the service’s link to the import delivery,
• invoice issued with the 0% VAT rate, including the legal basis for its application.

Notes:
The application of the 0% VAT rate in Poland requires full documentation and a clear connection between the service and the import customs procedure. If the required documents are missing, the service provider must apply the standard 23% VAT rate.

Domestic passenger transport in Poland with subcontractor

Business profile:
A Polish organiser of public passenger transport provides regular transport services on the Kraków – Katowice route. The actual journey is carried out by a subcontractor (a transport company) under a framework agreement.

VAT settlement:
According to the Polish VAT Act and Annex 3, passenger transport services carried out within Poland are subject to the reduced 8% VAT rate. This rate applies both to services provided directly by the organiser and to those carried out via a subcontractor.

Settlement structure:

• the organiser issues a sales invoice to the end customer (e.g. a municipality or public institution) with the 8% VAT rate,
• the subcontractor issues an invoice to the organiser – also at 8% VAT, as the nature and scope of the service are identical.

Required documentation:

• subcontractor agreement specifying the terms of service provision,
• reports of completed journeys, schedules, confirmation of completed routes,
• passenger tickets or sales reports from electronic systems (if applicable).

Notes:
In B2B arrangements within a single passenger transport service, the 8% VAT rate also applies between the organiser and the subcontractor. It is crucial that the subcontracted service mirrors the final passenger service in nature and scope.

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Summary and recommendations for transport companies in Poland

The VAT taxation rules for transport services are complex and vary depending on the nature of the service, its territorial scope, the status of the recipient, and the documentation requirements. Any error in classification or settlement may lead to serious financial and legal consequences, including the obligation to pay outstanding tax, interest, and administrative penalties. Therefore, companies in the Polish TSL sector (Transport – Shipping – Logistics) should treat tax matters as an integral part of both operational and strategic management.

How to optimise VAT settlements in the Polish transport sector

Efforts to optimise VAT settlements in the transport industry in Poland should focus on four key areas:

1. Segmenting services by type and territorial scope

Each service should be clearly classified as domestic, intra-Community, or international. This enables the correct application of the relevant VAT rate (23%, 8%, or 0%) and determines the related documentation obligations.

2. Verifying the status of business partners

In B2B transactions, it is essential to determine whether the customer is a registered VAT taxpayer in the EU or outside it. This requires regular use of the VIES system and maintaining records of every verification.

3. Standardising documentation procedures

For each category of service, an internal checklist of required documents should be implemented (e.g. CMR consignment note, SAD customs documents, orders, delivery confirmations). Missing documents at the time of a tax audit often result in the rejection of the 0% or 8% VAT rate.

4. Ongoing analysis of tax legislation and interpretations

Due to dynamically evolving case law and individual tax rulings, it is important to monitor the positions of tax authorities. In case of doubt, companies are advised to apply for individual tax interpretations from the Polish tax office.

Accounting support and tax advisory in Poland

Given the increasing level of tax risk and the complexity of regulations in Poland and the EU, cooperation with specialised accounting and tax advisory firms is becoming a crucial element in protecting the interests of transport businesses.

Benefits of external support include:

• ongoing verification of invoice accuracy and tax classification of services;
• preparation and control of complete transport documentation for tax purposes;
• advisory services related to VAT registration and settlement in other EU Member States (e.g. in the case of international transport);
• representation before the Polish tax authorities during audits, as well as assistance in obtaining individual tax rulings.

Recommendations for transport companies in Poland:

• establish ongoing cooperation with an accounting firm experienced in servicing TSL sector companies in Poland;
• implement internal procedures for tax control and transport document record-keeping;
• regularly train operational and accounting staff in current VAT regulations applicable to transport services in Poland.

These measures will not only reduce tax risk but also enhance the operational and financial efficiency of the transport business – particularly in the context of international and cross-border operations.

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