VAT in Poland – key information for businesses

Value Added Tax (VAT) is the main form of indirect taxation in Poland. It applies to the majority of goods and services supplied domestically, as well as to imports and intra-EU acquisitions. Below you will find the essential points every business should be aware of when operating in Poland:

Rates

Standard rate: 23%

Reduced rates: 8% (e.g. selected foodstuffs, medical products, construction services), 5% (e.g. books, certain foodstuffs), and 0% (intra-Community supplies, exports).

Registration

Businesses exceeding the annual turnover threshold of PLN 200,000 are required to register for VAT.

Voluntary registration is possible below this threshold if the taxpayer wishes to benefit from input VAT deductions.

Returns and settlements

VAT is generally reported on a monthly or quarterly basis.

Returns are submitted electronically via the JPK_V7M (monthly) or JPK_V7K (quarterly) file, which combines VAT reporting with detailed transactional data.

Taxpayers involved in intra-EU trade are also required to file EC Sales and Purchase Listings (VAT-UE), typically on a monthly basis, reporting supplies and acquisitions of goods and services within the European Union.

Deduction of Input VAT

Input VAT may be deducted if purchases are directly linked to taxable business activities.

Certain items (e.g. passenger cars used for mixed purposes, hospitality services) are subject to deduction restrictions.

Invoicing and documentation

Invoices must meet Polish VAT requirements, including proper identification of the supplier, recipient, VAT number, description of goods/services, and applicable VAT rate.

Electronic invoicing is increasingly promoted, with the Krajowy System e-Faktur (KSeF) – a structured e-invoicing system – becoming mandatory in 2026 and 2027 (for microbusinesses).

Cross-border transactions

Intra-EU supplies and exports of goods are generally subject to the 0% VAT rate if the purchaser provides a valid VAT number (in case of intra-EU transactions) and the supplier can prove the transport of goods.

Imports are subject to VAT upon entry into Poland, although special procedures (e.g. deferred accounting) may apply.

Penalties

Polish VAT law is strictly enforced. Failure to comply with registration, reporting, or invoicing obligations may result in financial penalties, interest on late payments, and in certain cases, criminal liability.

Additionally, the tax authorities may impose a sanctionary VAT surcharge, which can range from 15% to 30% of the understated tax liability in cases of irregularities or incorrect reporting.

How we can help

Our firm provides comprehensive VAT advisory services, including registration, compliance support, transaction analysis, and representation before tax authorities. Whether you are just entering the Polish market or already operating here, we ensure that your VAT processes are efficient, compliant, and aligned with your business strategy.