Taxes in a transport company in Poland – everything you need to know

Why are taxes such an important issue in the Polish transport sector?

The transport industry is one of the key sectors of the Polish economy, playing a crucial role in both domestic goods distribution and international operations. Due to its complex operational structure – involving various vehicle types, modes of transport, domestic and cross-border routes, and diverse cooperation models with clients and partners – transport companies in Poland are subject to extensive and varied tax regulations.

This is precisely why professional accounting services for transport companies have become an essential element of day-to-day business operations across the industry.

Understanding and correctly applying tax laws has a direct impact on a company’s functioning in this sector. Errors in tax settlements – whether in terms of corporate income tax, value-added tax (VAT), or vehicle tax – can result in serious financial consequences, including tax underpayments, interest charges, or even administrative sanctions. As such, efficient tax obligation management is not only a matter of legal compliance, but also a key component of the financial strategy of any business operating in the Polish transport industry.

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How the form of taxation affects business profitability

Choosing the appropriate form of income taxation for a transport company has a direct influence on profitability. Polish tax law provides for three main models of business taxation: flat-rate taxation on recorded revenues (ryczałt), flat tax (19%), and progressive tax scale.

Each of these systems comes with specific advantages and limitations, which must be analysed in the context of the company’s cost structure, revenue levels, type of transport services provided, and scale of operations.

For businesses with high operating costs, the flat tax model may be more favourable, as it allows full deduction of eligible expenses. On the other hand, smaller companies, especially in their early stages, may consider using flat-rate taxation, which, under the right conditions, offers lower tax rates and simplified bookkeeping requirements. Choosing the wrong form of taxation can significantly reduce net financial results, and in some cases, lead to unprofitable operations.

Therefore, both at the stage of setting up a transport company in Poland and throughout its operation, it is essential to regularly assess the tax implications of business decisions. Cooperation with a tax advisor is particularly important here, as they can help select the most appropriate taxation model based on the company’s economic and operational conditions.

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Forms of income taxation in a Polish transport company

The choice of income taxation model is crucial for optimising tax burdens in a Polish transport business. Each available option involves specific bookkeeping obligations, different tax rates, and a direct impact on how business expenses are accounted for. The decision on the appropriate taxation form should be preceded by a thorough analysis of the business model, income and operating cost levels, and the company’s growth plans.

Flat-rate tax on recorded revenues – rates, rules, and record-keeping

The flat-rate tax (Polish ryczałt) is a simplified form of taxation in which tax is calculated solely on the basis of revenue, without the ability to deduct costs.

In Poland, the following rates apply to transport services:

• 5.5% – for transport using vehicles with a payload capacity above 2 tonnes,
• 8.5% – for transport using vehicles with a payload of up to 2 tonnes.

Choosing this form requires detailed revenue records, broken down by type of service and vehicle specifications.

It’s important to note that eligibility for this taxation form is limited to a yearly revenue threshold, which in 2025 amounts to EUR 2 million (converted to PLN based on the exchange rate published by the National Bank of Poland – NBP).

The key advantage of the flat-rate system is simplified bookkeeping and potentially lower tax liabilities for businesses with low operating costs. However, the inability to deduct expenses makes it unfavourable for companies with high fuel, maintenance, or leasing costs.

19% flat income tax – who it’s for, benefits and risks

The flat income tax involves a uniform rate of 19%, regardless of the amount of income. This form is especially beneficial for businesses with high incomes and significant deductible expenses, which can be offset against revenues without limitation.

However, businesses using this model cannot take advantage of certain tax reliefs and preferences available under the tax scale system – such as joint taxation with a spouse or child-related tax credits.

This form requires maintaining full accounting records or a revenue and expense ledger (PKPiR), and making monthly or quarterly advance income tax payments.

Due to its predictability and the ability to reduce the taxable base through deductions, the flat tax is often chosen by medium and large transport companies in Poland, particularly those relying on leasing or intensive fleet usage.

Progressive tax scale: 12% and 32% – when is it worthwhile?

The tax scale system in Poland is progressive and consists of two income thresholds:

• 12% – for income up to PLN 120,000 per year,
• 32% – for income above that threshold.

This form is recommended for entrepreneurs with relatively low incomes or those wishing to benefit from personal tax reliefs, such as: joint filing with a spouse, child tax credits, investment allowances.

The tax scale may be attractive for sole proprietors or family businesses in which annual income does not exceed the second threshold.

However, in the case of rapid revenue growth, exceeding the PLN 120,000 threshold can result in a significant increase in effective tax burden.

Therefore, the decision to remain on the tax scale or switch to another form should always be based on a financial analysis aligned with the company’s current and projected situation.

The flat-rate tax card – why it’s not available for the transport sector in Poland

The flat-rate tax card (karta podatkowa), which is the simplest form of tax settlement in Poland, is not available to transport companies. The Polish legislator has excluded this type of business activity from the list of professions eligible for fixed monthly tax rates that are independent of revenue or costs.

This exclusion stems from the specific nature of transport services, which, due to varying assignments, route diversity, and fluctuations in operating costs, does not allow for a uniform, standardised tax assessment that would reflect economic reality.

As a result, entrepreneurs providing transport services in Poland can only choose from the three available forms of income taxation: flat-rate tax on recorded revenues (ryczałt), flat income tax (19%), or the progressive tax scale (12%/32%).

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VAT in the Polish transport industry

The Value Added Tax (VAT) system in the Polish transport sector is one of the most complex elements of the national tax framework. It requires thorough knowledge of both Polish and EU regulations.

Correct VAT settlement depends not only on the type of transport service provided, but also on the territorial scope of the operation – different rules apply to international, domestic, and intra-EU transport services. Failing to apply the correct VAT rate or failing to maintain the required documentation can lead to serious financial consequences.

International transport – how does the 0% VAT rate work?

Transport services that meet the criteria for international transport may qualify for a preferential 0% VAT rate. According to Article 83 of the Polish VAT Act, this applies to the transport of goods crossing national borders, including transport within the EU as well as outside the EU.

To apply the 0% VAT rate, the taxpayer must retain appropriate documentation confirming the international nature of the service. This includes, among others:

• CMR consignment notes,
• transport orders,
• customs clearance confirmations (for exports),
• and logistics documents confirming that the goods crossed a border.

The taxpayer must also be registered in Poland as an active VAT payer. If the documentation is incomplete or incorrect, or if the service is misclassified, the standard domestic VAT rate of 23% must be applied, which may significantly increase the cost for the customer or reduce the service provider’s margin.

Domestic and intra-EU transport – application of the 23% VAT rate

Goods transport carried out entirely within the territory of Poland is subject to the standard VAT rate of 23%. The same applies to transport services provided to Polish clients, even if the goods are moved between EU Member States – unless the conditions for applying the 0% VAT rate are met.

For intra-Community transport, it is necessary to carefully determine the place of supply, as this affects how VAT should be accounted for. If the service recipient is a VAT-registered entity in another EU country, the reverse charge mechanism may apply, meaning the VAT is settled in the buyer’s country.

In such cases, both parties must have valid EU VAT numbers, and the service must be properly documented.
Failure to clearly distinguish between domestic and intra-EU transport can lead to incorrect VAT reporting and potential disputes with the Polish tax authorities.

VAT exemption in Poland – when is it possible and what are the turnover limits?

Transport service providers in Poland may benefit from the so-called subjective VAT exemption, provided their annual turnover does not exceed the statutory threshold. According to Article 113(1) of the Polish VAT Act, this exemption applies to businesses whose net annual revenue does not exceed PLN 200,000 (as of the 2025 legal status, though this amount should be verified annually due to potential updates).

This exemption applies only to domestic sales – it does not cover international services, which require VAT registration as an active VAT taxpayer in Poland, regardless of revenue levels. Furthermore, businesses benefiting from the exemption cannot issue invoices with VAT, which may limit their ability to work with partners who prefer to deduct input tax.

Once the turnover threshold is exceeded, VAT registration becomes mandatory, along with the obligation to maintain full VAT records, including sales and purchase registers, and to submit monthly or quarterly VAT returns.

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Most common tax errors in Polish transport companies

Running a transport business in Poland involves strict compliance with numerous detailed tax regulations. A lack of knowledge or incorrect interpretation can lead to serious financial consequences.

In practice, many recurring errors can be observed in transport companies, typically stemming from insufficient regulatory oversight or lack of up-to-date tax knowledge within the accounting function.

Incorrect choice of taxation form

Although the form of taxation is usually selected when establishing a business, it is often not reviewed later, even when the company’s economic or operational conditions change.

A common mistake is sticking with a taxation form that was only optimal in the early stages, such as flat-rate taxation (ryczałt) for small-scale operations.

As operating and fleet investment costs increase, such a form may result in inadequate tax relief, as it does not allow expense deductions. On the other hand, applying the progressive tax scale with high income levels may push the taxpayer into the higher 32% bracket, substantially reducing net margins.

The consequences of using an ill-suited taxation model include overpayment of income tax and even loss of liquidity, especially during periods of increased operational costs (e.g. fuel price hikes, service costs).

Deficiencies in accounting records – what are the risks?

One of the key obligations of Polish transport business owners is to keep accurate records of income, expenses, fixed assets, and – in the case of flat-rate taxation – revenue breakdowns by vehicle.

Documentation gaps or incorrect bookkeeping may result in:

• questioning of the declared income amount,
• rejection of cost deductions,
• obligation to pay overdue tax plus interest,
• criminal-fiscal penalties for accounting irregularities.

In practice, Polish tax authorities often focus on reviewing transport documentation (e.g. CMR consignment notes), trip records, fuel and service invoices, or leasing agreements. A lack of consistency between operational and accounting documentation may be considered an attempt to understate taxable income, potentially triggering additional penalties.

Misinterpretation of VAT regulations

VAT in the Polish transport sector requires precise distinction between the geographic scope of services – whether they involve domestic, international, or intra-EU transport.

A common mistake is wrongly applying the 0% VAT rate to services that do not qualify as international transport, for example, transport ending within Poland or lacking appropriate documentation.

Consequences may include:

• the obligation to pay 23% VAT on the service provided,
• loss of input VAT deduction rights related to that service,
• the need to correct VAT declarations and JPK_VAT files,
• increased audit risk and financial penalties.

Errors also frequently result from incorrect determination of the place of supply within the EU or lack of a valid EU VAT number on the part of the foreign client. In such cases, even if the transport physically crosses borders, the service may still be considered domestic for VAT purposes, significantly changing its tax treatment in Poland.

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Summary and recommendations

Effective management of tax obligations in a Polish transport company requires not only up-to-date knowledge of regulations, but also the ability to apply them correctly in the context of the company’s specific operational profile.

Transport businesses operate in an environment of frequent regulatory changes and high cost volatility, which makes tax planning a key element of overall financial strategy.

Key takeaways

• The choice of income taxation model should be tailored to the company’s revenue and cost structure. Flat-rate taxation (ryczałt) may be beneficial for businesses with low operating costs, while flat tax and the progressive tax scale are better suited for companies with higher expenses and income levels.
• The 0% VAT rate may be applied only to international transport services, provided that specific formal and documentary requirements are met. Domestic and intra-EU transport services in Poland are generally subject to the standard 23% VAT rate.
• VAT exemption is available only to businesses whose annual turnover does not exceed PLN 200,000. Once this threshold is exceeded, registration as an active VAT taxpayer in Poland becomes mandatory.
• Vehicle tax (podatek od środków transportowych) applies to vehicles of a certain weight and purpose. The tax rate depends on technical parameters and local authority resolutions.
• The most common tax errors include:
  • incorrect selection of the taxation form,
  • incomplete accounting records,
  • misclassification of services for VAT purposes –

  all of which can result in financial penalties and fiscal-criminal liability.

What changes in 2025?

As of the date of this publication, no major legal changes have come into force regarding the taxation of income in Polish transport companies, VAT rates, or the structure of vehicle tax.

The existing thresholds remain in place: up to EUR 2 million in annual turnover to qualify for flat-rate taxation (ryczałt), up to PLN 200,000 for VAT exemption.

However, it is advisable to follow announcements from the Polish Ministry of Finance regarding planned income tax reforms and EU-level changes to the taxation of cross-border services, which may affect transport tax settlements in the medium term.

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