Who is required to register for Polish VAT?
If during the past calendar year your business has made taxable supplies within the meaning of the Polish VAT law in Poland exceeding 150,000.00 PLN (excluding tax) you will be required to register and account for Polish VAT. The same applies if you start your business activity in the current year and the 150,000.00 PLN threshold (in proportion to the duration of the taxable supplies) is exceeded during the year. If you trade below the registration threshold you may choose to register for VAT voluntarily. In case of certain activities e.g. performing advisory services, supplies of excise goods, above threshold is not applicable at all.
Non-Polish entities that carry out taxable supplies in Poland are obliged to register for VAT regardless of their taxable turnover.
However, non-Polish entities are not obliged to register if they affect only certain activities, such as for example:
- Supplies of goods for which the VAT is settled by the customer (reverse charge)
- Supplies of services for which the VAT is settled by the customer (reverse charge)
If your business is not registered for VAT in Poland but sells and delivers goods from another EU Member State to customers in Poland who are not VAT registered (distance sales), where the value of those sales exceeds a threshold of 160,00.00 PLN, your business is required to register and account for VAT in Poland.
If the company is subject to VAT tax, it must proceed for VAT registration in Poland with the local Tax Authorities to obtain the registration number. If the annual turnover of a company is less than 50,000.00 PLN (11,500.00 EUR), there is no need for VAT registration in Poland. However, the procedure can be done immediately after obtaining the registration certificate from the National Court Register. The application should contain an excerpt from the company foundation deed, the registration certificate and a standard form which must be completed by the managers of the company.
If you need to register your business in Poland regarding VAT we can assist you.
Necessary documents for registration for VAT purposes in Poland:
- Original deed of association of your company translated into Polish language by Polish sworn translator;
- Original and actual excerpt from company register in your country confirming that such company exist, translated into Polish language by Polish sworn translator;
- Original of confirmation of registration for VAT purposes in your country translated into Polish language by Polish sworn translator;
- Agreement with Bank in Poland confirming that company has open a bank account;
- Agreement with accounting office in Poland
- Agreements with Polish clients and/or description of activities in Poland;
- Power of attorney for us issued by authorised person shown in the court registers;
- Stamp fee 170.00 PLN;
- VAT-R form – will be completed by getsix® Accounting;
- VAT-UE form – will be completed by getsix® Accounting;
- NIP-2 form – will be completed by getsix® Accounting;
Please kindly notice that registration procedure takes about 4 weeks from the date of receiving all of the documents mentioned above.
Poland implemented its Value Added Tax system in 1993, partially in anticipation of its entry into the European Union. VAT replaced the old Soviet-style sales tax. Locally, it is known as podatek od towarów i usług.
Its VAT regime was updated in 2004 upon Poland’s full accession into the EU. The included implementing all the EU VAT directives’ rules on VAT registrations, returns, compliance, intrastate and related requirements. The Polish VAT Act of 2004 contains most of the rule on VAT. This is backed-up by various instructions and the Tax Ordinance Act of 1997. The Ministry of Finance is responsible for the administration of the VAT regime.
Foreign companies providing taxable supplies of goods and services in Poland may be required to VAT register as a non-resident trader, and comply with all the accounting and payments requirements.
Should you register for Polish VAT?
Poland sets a number of situations where foreign companies should register for VAT. It follows many of the other EU member states:
- Importing goods into Poland from outside the EU – note there are a number of situations (e.g. onward supply) where the requirements are simplified
- Buying and selling goods within Poland
- Providing goods to individuals via the internet, subject to a VAT registration threshold
- Storing goods in warehouses as consignment stock for clients
- Operating live events and shows with paid-for admission on the door
- If a company is otherwise a non-VAT trader, but is receiving services in the Poland under the reverse charge rule
- The self-supply of goods
De-registration from VAT
It is essential to make sure if your business needs to fulfill the VAT reporting obligation in Poland or de-registration from VAT in Poland is advisable.
getsix® Accounting will provide you with a complete package in case you need to perform VAT de-registration in Poland. We will help you establish whether VAT de-registration is needed since your VAT reporting in Poland may no longer be required. Since an entity already registered as an EU VAT taxable person that stops handling intra-community transactions is required to report this fact to Tax Authorities please make sure that you inform us of the facts that may affect your intra-community reporting in Poland.
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Are there any simplifications that could avoid the need for an overseas company to register for VAT Tax?
If your business makes supplies of goods or services in Poland, then you are required to register and account for Polish VAT. However, the registration for Polish VAT is not required when making certain supplies (if the reverse-charge applies).
If your business is an intermediate supplier to a Polish buyer of goods which you purchase from a business in an EU Member State other than your own and are delivered from there to Poland, VAT due can be accounted for by the Polish buyer. Your business is in this case also not obliged to register for Polish VAT. Bear in mind that these provisions are subject to particular requirements and so you should check carefully whether you comply with them. Please read more: VAT Representation – non EU Companies.
Foreign companies which deliver goods to a warehouse of Polish purchaser and which supply these goods at the moment when the goods are taken from the warehouse, to the production line by the purchaser, may not be obliged to register for VAT in Poland. The obligation to settle VAT with respect to intra-EU acquisitions is shifted on the Polish buyer of the goods. These provisions are also subject to particular requirements and so you should check carefully whether you comply with them.
Starting from 01 April, 2013 VAT on domestic supplies of goods performed by the companies non-established in Poland (which do not have either a seat or a fixed place of business in Poland and are not registered for VAT purposes in Poland),to companies established in Poland must be settled by those Polish companies (purchasers). This means that the foreign entity without VAT registration in Poland when performing the domestic supplies of goods for Polish companies should not charge VAT on the invoices. VAT should be settled by the purchasers on the reverse charge basis.
In the case of the provision of services, the reverse charge mechanism is applicable in cases where the services are performed by companies non-established in Poland (which do not have either a seat or a fixed place of business in Poland) for a purchaser registered for VAT purposes in Poland, irrespective of the fact whether the foreign service provider is registered for VAT purposes in Poland. The above rule does not apply to services related to particular real estate where the supplier is registered for Polish VAT purposes.