The VAT rates in Poland:
Regardless of the legal form of carrying out business activity in Poland foreign investors are obliged to pay VAT on purchases made in Poland. The basic VAT rate in Poland is 23%, but there are products taxed at lower rates of 8%, 3% or even 0%. There are also some explicitly listed goods and services which are VAT exempt under the Polish VAT Law, such as provision of some financial services, rental of apartments for non-business purposes, sale of a building and constructions (under some conditions), as well as sale of an enterprise or its organised part.
Graph of the VAT rate in Poland
VAT RATE 23%
VAT RATE 8%
VAT RATE 3%
VAT RATE 0%
If a company is registered for VAT in Poland it has a right to receive a direct return of the excess of VAT on purchases (input VAT) over the VAT on sales (output VAT). In order to apply for a VAT refund, the company must declare so in the monthly or quarterly VAT returns. Submitting VAT returns on a regular basis is a basic duty for all entities registered for VAT. Hence, this procedure is common and well-known for foreign investors, particularly those using assistance from Polish outsourcing entities like getsix® with a huge experience with such matters.
According to Polish VAT regulations, companies headquartered outside of Poland are obliged to name a tax representative responsible for tax liabilities.
Foreign entities which, as defined by the act on VAT, deliver goods or provide services in Poland and that cannot tax the goods or services via a Polish purchaser, become Polish VAT taxpayers. Even though the actual business activity takes place outside of Poland, these companies are obliged to register, keep their books and submit documents in the same way as Polish taxpayers.
If VAT taxpayers are domiciled or headquartered outside of the EU and are also obliged to register in Poland as active VAT taxpayers, they are required to assign a tax representative. Please read more:
getsix® accounting services for VAT-registered companies headquartered inside the EU
Moreover, once a company is VAT-registered it must be kept compliant with the current VAT Law (non-compliance may be penalised under the Polish Fiscal Penal Code). Even with no or little operations a company must have VAT registers, maintain and submit VAT returns (monthly or quarterly),even if they are actually nil-VAT returns.
As VAT Register accounting service that we offer involves representation and fulfilment of our client’s obligations regarding value added tax obligations in Poland.
The service is for companies headquartered within the EU.
getsix® responsibilities include:
- Bookkeeping and safekeeping of all records and documentation required by VAT regulations,
- Supervision of appropriate conduct during audits and tax proceedings.
getsix® Scope of Services includes:
- Keeping registers for the needs of the value add tax – (VAT),
- Settling VAT,
- Preparing monthly fiscal declaration VAT-7 on the tax on goods and services,
- Preparing quarterly fiscal declaration VAT-UE,
- Dealing with fiscal authorities on behalf of the client,
- VAT recovery services.