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Summary

Standard VAT rate: 23%
E-Invoicing: live for B2G, to be introduced in B2B and B2C from 2021
Real-time reporting: mandatory for B2G
Digital service tax: no

Compliance and rates

VAT number format

All EU member states have a fixed format for their VAT numbers. In Poland it includes 10 digits and the prefix PL (i.e. PL 1234567890).

VAT rates

The standard VAT rate in Poland is 23%, with reduced rates of 8% and 5% on certain goods and services. A number of services are exempt from Polish VAT, such as financial and postal services.

23% (Standard) – Applies to all taxable supplies, with certain exceptions

8% (Reduced) – Some foodstuffs, medical products, restaurant and hotel services and supplies covered by the social housing policy

5% (Reduced) – Some foodstuffs (e.g. bread, dairy products, meats), certain kinds of printed books

0% (Zero) – Applied to e.g. supplies of certain vessels and aircrafts, services related to air and sea transport, international transport services, services related to import and export of goods

VAT payments and returns

All businesses with Polish VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

For all companies that operate in Poland, VAT returns must be submitted on a monthly basis or quarterly basis, depending on the annual revenue of the business entity.

Monthly – by the 25th of the following month for “large taxpayers” with an annual revenue higher than EUR 1,200,000.

Quarterly – by the 25th of the following month for “small taxpayers” with an annual revenue less than EUR 1,200,000.

Penalties in case of late filings or misdeclarations

Non-registration and/or late registration are subject to fines of PLN 210 – PLN 42,000.

Non-payment and/or late payment of the VAT may lead to the following penalties:

1) Obligation to pay the amount of VAT due along with penalty interest (currently 8% per annum)

2) Additional VAT liability (fine) amounting to 30% of the amount of VAT arrears not settled

3) Fines (PLN 210 – PLN 42,000) – if the taxpayer persistently does not pay taxes

Submission of incomplete and/or incorrect VAT returns, non-submission and/or late submission of VAT returns are subject to fines up to PLN 20,160,000 or potential imprisonment if non-compliance leads to non-payment of VAT.

Invoice requirements

Invoices must contain at least the following information:

  • date of issuance
  • a unique, sequential number of the invoice
  • supplier / issuer data (company name, address, tax number)
  • customer data (address and other data if available, tax number)
  • date of invoice issuance or delivery
  • full description of goods and services provided
  • quantity of goods and services provided
  • net price per unit
  • any discounts, ancillary costs and expected expenses (if applicable)
  • the net, taxable value of the invoice
  • rate and amount of VAT applicable for the category of goods and services provided
  • the invoice total, gross amount

Penalties for non-compliance with invoicing and accounting obligations

The penalties depending on the type of non-compliance:

1) Failure to keep VAT registers or keeping them not in accordance with law is subject to fine of up to PLN 6,720,000.

2) Failure to issue invoices or issue them not in accordance with law is also subject to a fine of up to PLN 5,040,000.

3) Issue false invoices or using them is subject to fine up to PLN 20,160,000 or potential imprisonment.

E-Invoicing

From 2020, all suppliers billing the Government must submit their invoices electronically. For B2B and B2C transactions, issuance of invoices electronically is permitted, but still not mandatory.

However, there are many rumors that Poland is already working on the framework based on Italian e-invoicing regulations. Those rumors claim that Poland will introduce mandatory B2C and B2B e-invoicing and real-time reporting as an additional move to reduce the VAT gap.

SAF-T

Poland introduced the Standard Audit File for Tax (SAF-T) on 1 January 2018. for all taxpayers.

SAF-T is an electronic schema developed for the efficient exchange of information between the tax authorities and businesses. It was created by the Organization for Economic Cooperation and Development in 2005 as a standard to be used globally to ensure consistency from country-to-country to facilitate exchange of data between tax authorities. The file requirements are expressed using XML, although the EU does not specify the exact file format.

Turnkey invoice compliance.

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