The VAT rate in Poland is 23% but the Government established certain exceptions for several goods and services. For example, for tourist services, health-care, newspapers, transportation, water distribution and house renovation and construction procedures, the VAT rate in Poland is 8%, while for certain food and books the applied VAT rate was settled at 5%. There are also products and services exempted from Polish VAT like dairy products, educational, art, science, financial and postal services.
The following video contains information on the VAT rates and registration in Poland:
VAT registration procedure in Poland
Only companies with an annual turnover higher than 50,000 PLN (11,500 EUR) are required to register for VAT in Poland. Their managers must register with the local Tax Authorities in order to obtain the registration number.
The procedure can be started immediately after obtaining the registration certificate from the National Court Register. When filling the application, the company manager must also present:
•the registration certificate
•excerpt from the company foundation deed
•a standard form which must be completed by the manager.
VAT refund in Poland
For receiving a VAT refund in Poland, a resident company must file an application to the Head of the Second Tax Office in Warsaw. Foreign entities are no longer obliged to file a VAT refund claim in a Member State where they paid VAT. Therefore in order to recover VAT retained for local acquisitions of goods and services, the companies can now submit an application to the Polish tax authorities through the tax authorities in their own country. The application must be filed until the September 30 of the calendar year following the refund period.
Together with the application, the taxable entity must also submit certain supporting documents including invoices or customs duty documents and the certificate of VAT residence from the applicant’s country. It usually takes approximately 4 months for the tax authorities to process the claim. If the refund is not granted within deadline the company is entitled to penalty interest.
There are also certain time ranges that must be taken into consideration. For example it is not possible to receive a VAT refund in Poland for a period shorter than three months or longer than one year. When the Polish authorities finish the claim and papers verification, the VAT amount will be transferred to the applicant.
The VAT Act prohibits the deduction of input VAT for hospitality services or purchase of fuel for cars. The tax refund is usually transferred in the bank account indicated by the taxpayer but it can also constitute security for loans.
Intra-community VAT work in Poland
For performing intra-community transactions to or from another company in a Member State of the EU, the taxable entity must notify the head of the Tax Office of its intention by submitting a notification before the first supply or acquisition of goods takes place. In this way, the company will be registered as an EU tax payer and its status will be confirmed so it will be able to perform the transaction. The acquisition of goods will be taxed in Poland but if the goods are transported to another EU member state, VAT must be paid there.
Michał Gawlak is an experienced business consultant, specialized in corporate and tax law. He has helped many local and foreign investors open companies in Poland.
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