VAT in Poland: Rates, Registration & Compliance Guide (2025)

VAT in Poland

VAT (Value Added Tax) is a tax on the consumption of goods and services in Poland. It is added at every stage in the supply process. A business will charge VAT on the price of a product or service. It will collect that VAT from the customer and will pay it to the government.

The VAT rate in Poland ranges from 23 percent to 0 percent, depending on the type of goods or services.

This blog will help you understand all the key details about VAT in Poland.

What Is VAT

VAT (Value Added Tax) is an indirect tax on the consumption of goods and services. It is applied at each stage in the supply chain, starting from the producer and continuing through to the final consumer. 

In Poland, VAT applies to most business transactions. A business will add VAT to the selling price, collect it from the customer, and pay it to the tax office. Although VAT is collected by businesses, the final cost is paid by the consumer. 

The VAT system allows businesses to deduct the tax paid on their purchases (input VAT) from the tax collected on their sales (output VAT). The business will then pay the government only the remaining amount after subtracting input VAT from output VAT.

VAT Liability in Poland

A business must register for VAT in Poland if it meets any of the following:

• Turnover exceeds PLN 200,000 in a fiscal year (proportional for new businesses).
• Voluntary registration is chosen, even if turnover is below the threshold.
• Mandatory registration, regardless of turnover, applies if the business:
  • Supplies goods like precious metal scrap, excise goods (some exceptions), building land, or new means of transport,
  • Sells goods under distance contracts (e.g. electronics, cosmetics),
  • Provides services such as legal, advisory (non-agricultural), jewellery, or debt recovery,
  • Operates from outside Poland but carries out taxable activities in the country.

VAT Exemptions in Poland

Businesses in Poland may be exempt from VAT based on their annual turnover or the nature of their activity. There are two main types of exemptions: personal exemption and transaction-based exemption.

Personal Exemption

• A business can apply for exemption if:
• Its taxable sales do not exceed PLN 200,000 in a fiscal year (or the proportionate amount for new businesses), and
• It does not carry out activities excluded from exemption.
• This is commonly used by small businesses and is also called the threshold-based exemption.

Transaction-Based Exemption

• Some goods and services are always exempt from VAT, no matter the turnover. These include:
• Financial and insurance services,
• Educational services,
• Residential rentals for housing,
• Medical and healthcare services,
• Certain social, cultural, or charity services.

When VAT Exemption Is Not Allowed

• A business cannot use the personal exemption if it:
• Sells specific goods like precious metal scrap, excise goods, building land, or new transport vehicles,
• Sells products under distance contracts (e.g. electronics, cosmetics),
• Provides services such as legal, advisory (non-agricultural), jewellery, or debt recovery,
• Has no office in Poland but operates in the country.

VAT Rates in Poland

Poland applies four main VAT rates depending on the type of goods or services:

How VAT Is Calculated in Poland

VAT in Poland is calculated on the total taxable amount a customer pays for a supply of goods or services. The business will apply the correct VAT rate based on the type of goods or services, add it to the price, and collect the total amount from the customer.

Example:

If a furniture store sells a table for PLN 1,000, it will add 23% VAT (PLN 230), 

so the customer pays PLN 1,230. 

The business collects the VAT and reports it to the tax office.

VAT Registration in Poland

Businesses required to register for VAT in Poland must do so before their first taxable transaction or before waiving a VAT exemption by submitting a VAT-R application to the appropriate tax office.

How to Register

• First, the business must obtain a Tax Identification Number (NIP).
• Then, it must submit the VAT-R form to the relevant tax office.
• The correct office depends on whether the business is:
  • A company
  • Self-employed
  • Based outside Poland
• The form can be submitted:  
  • In person at the tax office
  • By post
  • Online through the official government portal

Confirmation and Cost

• VAT registration is free.
• If the business wants an official registration certificate, a PLN 170 fee is required.

After Registration

• The tax office will review the application.
• The business will be registered as either:
  • An active VAT payer, or
  • A VAT-exempt entity

• Additional documents may be requested during the verification process.

  VAT Payment and Returns Filing in Poland  

• Businesses registered for VAT in Poland must file returns and pay VAT according to set deadlines and formats.

Filing VAT Returns

• VAT returns must be filed monthly or quarterly, depending on the business type and eligibility.
• Returns are submitted electronically using the JPK_VAT (SAF-T) file, which includes:
  • A records part (sales and purchase data)
  • A returns part (summary of VAT due or refundable)

Two formats apply:

• JPK_V7M for monthly filing
• JPK_V7K for quarterly filing

Filing deadline: By the 25th day of the month following the reporting period.

• Who Can File Quarterly

• Only small taxpayers can file quarterly returns.
• Conditions:
  • Annual sales do not exceed the PLN equivalent of EUR 1,200,000, or
  • EUR 45,000 for certain intermediaries or agents.
  • The business has not supplied goods listed in Annex 15 (e.g. electronics, steel, fuel) beyond monthly limits, or
  • The business has not imported goods under Article 33a VAT Act in the quarter.

VAT Payment

• VAT due must be paid by the same deadline as the return filing (25th day of the following month).
• Payment is made to the tax office’s account.

• Businesses using the split payment mechanism can pay VAT to a special VAT account.

  Important Notes  

• New VAT-registered businesses cannot file quarterly for the first 12 months.

Record-Keeping Obligations in Poland

Businesses registered for VAT in Poland must maintain proper records of all transactions to comply with tax regulations. These records must be accurate, complete, and available in electronic form if requested by the tax authority.

The following records must be kept:

• Sales and purchase invoices,
• VAT returns and JPK (SAF-T) files,
• Evidence of imports and exports,
• Proof of intra-EU supplies and acquisitions,
• Records of adjustments, credit notes, and advance payments,
• Inventory records, if applicable.

All documents must be stored in a way that ensures easy access, clear structure, and protection against loss or damage.

Retention Period:

Records must be kept for at least 5 years from the end of the year in which the tax became due.

If a business issues or receives invoices electronically, it must ensure the authenticity, integrity, and legibility of the documents throughout the storage period.

VAT Refund in Poland

Businesses registered for VAT in Poland may be eligible for a VAT refund if the input VAT (paid on purchases) is higher than the output VAT (collected on sales) in a given period.

To receive a refund:

• The business must correctly file the VAT return (JPK_VAT),
• The refund request is included as part of the return,
• All supporting documents must be accurate and available if requested.

Standard refund period:

• The refund is usually issued within 60 days from the date the return is submitted.
• In some cases, such as when additional checks are required, the tax office may extend this to 180 days.

Shorter refund period (25 days) may apply if:

• The return is filed electronically,
• All invoices and payments are fully documented,
• The business has no tax debts and meets other specific conditions.

VAT refunds are credited to the business’s bank account or can be carried forward to offset future VAT liabilities.

E-Invoicing in Poland

From 1 February 2026, Poland will make e-invoicing mandatory through its national platform called KSeF (Krajowy System e-Faktur). This will first apply to businesses with sales of more than PLN 200 million, and from 1 April 2026, it will apply to all VAT-registered businesses. A business must issue invoices in a structured XML format and send them through KSeF for validation. You can read our full guide for more details on how the system works and who must comply.

Conclusion

VAT in Poland is a tax on the consumption of goods and services. Businesses must register for VAT if they cross certain thresholds or carry out specific taxable activities. Once registered, they must charge VAT, file returns, keep records, and follow other compliance rules based on their business type and size.

Starting in 2026, Poland will introduce mandatory e-invoicing through the KSeF platform. This will apply to large businesses from 1 February 2026, and to all VAT-registered businesses from 1 April 2026.

It is important to be prepared. Flick’s e-invoicing software supports Polish VAT and KSeF requirements, helping you automate invoice submission and stay fully compliant with minimal effort.

FAQ

What are the VAT rates in Poland?

Poland applies four VAT rates: 

1. 23% (standard),
2. 8% (reduced)
3. 5% (reduced),
4. 0% (zero),

depending on the type of goods or services.

What is the KSeF system in Poland?

KSeF is the national e-invoicing platform of Poland. It will become mandatory for large businesses from 1 February 2026. From 1 April 2026, it will apply to all VAT-registered businesses.

Can small businesses skip VAT?

Yes. If annual sales stay below PLN 200000 and no restricted goods or services are sold, a business can apply for exemption.

When to file VAT returns?

Returns must be filed monthly or quarterly by the 25th of the next month using the JPK_VAT format.

What are the penalties for VAT non-compliance in Poland?

If a business fails to register or does not file returns or breaks VAT rules, it may face financial penalties. The tax office may also charge interest or carry out a tax audit.