Value-Added Tax (VAT)

In Poland, VAT is imposed on the following categories of activities:

Supply of goods and provision of services within the territory of Poland.
Export of goods to destinations outside the European Union.
Import of goods into Poland from countries outside the EU.
Intra-Community acquisitions of goods (purchases from other EU member states).
Intra-Community supplies of goods (sales to other EU member states).

VAT Rates

The applicable VAT rates in Poland are 23% (standard), 8%, 5%, 0%, and full exemption.

The standard rate of 23% is applied to most taxable supplies of goods and services, unless special VAT rules provide for a reduced rate or an exemption.

The 8% reduced rate applies, among others, to the sale of pharmaceuticals, passenger transport services, and goods covered by the Social Housing Programme (limited to 150 m² for residential units and 300 m² for detached houses).

The 5% rate covers items such as books, periodicals, selected unprocessed foods, and staple food products.

The 0% rate applies to certain activities, notably the export of goods outside the European Union.

VAT-exempt supplies include specified financial, insurance, and educational services.

General VAT Calculation Rules

In principle, the amount of VAT payable is calculated as output VAT (tax on sales) minus input VAT (tax on purchases). Input VAT is deductible only if the purchased goods or services are directly related to taxable business activities and the purchaser is a registered VAT payer.

Certain categories of purchases are specifically excluded from input VAT deduction under Polish law. In addition, under prescribed conditions, taxpayers may reduce output VAT if receivables from taxable transactions become uncollectible.

The White List of VAT Payers

Poland maintains an online database known as the "white list" of VAT payers, which includes:

Entities that are not registered for VAT or have been deregistered.
Entities registered as active VAT payers or as exempt taxpayers, including those whose VAT registration has been reinstated.

The register also contains bank account numbers provided in official filings to the tax office.

For B2B transactions exceeding PLN 15,000 (or the foreign currency equivalent), payment must be made to an account appearing on the white list. Payments to accounts not on the list cannot be treated as tax-deductible expenses and may expose the payer to joint and several liability for the supplier's VAT obligations.

This liability can be avoided if the taxpayer notifies the head of the competent tax office within seven days of making a payment to a non-listed account.

Split Payment Mechanism

Under the split payment system, bank transfers for B2B transactions are divided into two amounts: the net value and the VAT amount. The VAT portion is deposited directly into a special VAT account of the supplier.

Funds in the VAT account can only be used to pay VAT liabilities, certain other taxes (CIT, PIT, excise, customs duties), social security (ZUS) contributions, or VAT on supplier invoices into their VAT account.

Mandatory split payment applies to:

Transactions between VAT taxpayers in Poland.
Invoices exceeding PLN 15,000 gross.
Goods and services listed in the Polish Classification of Products and Services (PKWiU 2015) — including metals, waste, electronics, fuels, building services, vehicle parts, and greenhouse gas emission allowances.

Foreign entities liable for VAT in Poland and making such payments must hold a bank account in Poland.

International Services

The VAT treatment of cross-border services depends primarily on the place of supply rules. Polish VAT applies only to services deemed to be supplied within Poland.

VAT Reporting

VAT must be reported using the Standard Audit File for VAT (SAF-T), known as JPK_VAT or JPK_V7, which combines the VAT return and detailed transaction records.

The standard filing period is monthly, but small taxpayers may opt for quarterly settlement. There is no annual VAT return requirement. Returns are due by the 25th day of the month following the reporting period.

Taxpayers engaged in intra-EU trade must also submit the VAT-UE declaration for reporting:

Intra-Community acquisitions of goods.
Intra-Community supplies of goods.
Intra-Community provision of services.
Movements of goods under call-off stock arrangements.

This is also due by the 25th day of the month following the reporting month.

VAT Refunds

If input VAT exceeds output VAT, a refund may be claimed. The standard refund period is 60 days, which may be shortened to 25 days with additional documentation. A 180-day period applies if no taxable sales are reported. The tax office may extend the timeframe if further verification is required.

Refunds of Polish VAT to EU-based businesses follow a simplified electronic procedure under EU Directive rules. Conversely, Polish businesses can reclaim VAT from other EU states under the same framework.

Invoicing and e-Invoicing

Invoices must generally be issued by the 15th day of the month following the month of supply. They can be issued in advance but not earlier than 60 days before the intended supply.

Currently, invoices may be issued in paper or electronic form, with the buyer's consent for e-invoices.

Poland is implementing the National e-Invoicing System (KSeF), under which invoices will be in a structured XML format submitted through a state platform.

Use of KSeF will become mandatory from:

1 February 2026 — for businesses with turnover above PLN 200 million.
1 April 2026 — for all other taxpayers.

VAT Groups

From 2023, Polish law allows for the creation of VAT groups, enabling related entities to be treated as a single VAT taxpayer.

Customs Duties

As an EU member, Poland applies customs duties only to goods imported from or exported to non-EU countries. EU customs regulations, including the Union Customs Code, apply directly.

Polish national rules supplement EU law in areas not harmonised, such as export restrictions on certain goods (e.g., works of art, animals) and cash limits when leaving for non-EU countries.

From 2024, Poland implemented the AES/ECS2 PLUS export control system, requiring exporters to use standard procedures for customs clearance, eliminating simplified entry-in-records methods.

Additionally, the Carbon Border Adjustment Mechanism (CBAM) was introduced for specific goods — such as cement, steel, aluminium, fertilisers, and electricity. The transitional period (2024–2025) requires only emissions reporting, with full implementation from 1 January 2026, when importers will need to purchase CBAM certificates.

Excise Duties

Excise applies to specified goods, including alcohol, tobacco, energy products (petrol, gas), passenger cars, and electricity. The method of calculation varies — as a percentage of the taxable base, a fixed amount per unit, or a combination.

Examples:

Petrol: PLN 1,529 per 1,000 litres.
Passenger cars: 3.1% for engines ≤ 2,000 cc; 18.6% for engines > 2,000 cc.

Coal, coke, and lignite are also subject to excise duties, although numerous exemptions exist. Entities using excise goods must register in the Central Register of Excise Entities.

Property Tax

Levied on:

Buildings (based on usable area).
Structures (based on initial tax value).
Land (based on surface area).

Rates are set annually by municipalities within statutory limits. In 2024, the maximum rates are PLN 1.34/m² for business land, PLN 33.10/m² for business buildings, and PLN 1.15/m² for residential buildings.

Transfer Tax (Civil Law Activities Tax)

Applies to certain contracts, including sales and loans.

2% for tangible assets and real estate.
1% for property rights.
0.5% for loans.

Some transactions are exempt, particularly those subject to VAT.

From 2024, purchases of more than five residential units trigger an additional 6% tax from the sixth unit onward.

Stamp Duty

Stamp duty is payable for certain administrative actions, including granting a power of attorney or issuing official certificates.

Capital Tax

A 0.5% tax is imposed on share capital increases in corporations and partnership contributions, with exemptions for certain transactions (e.g., mergers, qualified share exchanges).

Payroll Taxes & Social Security

No separate payroll tax exists, but employers must withhold PIT and pay social security contributions (ZUS).

Employer contributions range from 19.48% to 22.14% of gross salary, while employee contributions are 13.71% for social insurance plus 9% for health insurance (non-deductible).

Annual contribution caps apply to pension and disability insurance (PLN 260,190 for 2025).

Banking Tax

Applies to banks, insurers, and lending institutions, calculated on assets exceeding specific thresholds. The rate is 0.44% annually.

Retail Tax

Applies to retail sales revenue above PLN 17 million/month.

0.8% on the portion ≤ PLN 170 million.
1.4% above PLN 170 million.

Certain sales (e.g., energy, heating fuels, medicines) are exempt.

Capacity Fee

Charged on electricity consumption, with rates in 2024 ranging from PLN 2.66 to PLN 14.90 depending on annual usage, or PLN 0.1267/kWh for large users during peak hours.

Sugar Tax & Alcohol Fee

Levied on drinks with added sugar, sweeteners, caffeine, or taurine.

PLN 0.50/litre for ≤ 5g sugar/100ml.
PLN 0.05 per gram above 5g.
PLN 0.10/litre for caffeine/taurine content.

An additional fee applies to small-package alcoholic beverages.

Product Fee

Under the Waste Act, entities introducing packaging, certain goods, or batteries to the Polish market must either pay a product fee or meet recycling requirements.

From 2023–2024, new obligations apply for tracking, reporting, and charging for single-use plastics, with mandatory alternative packaging from 1 July 2024.

Need help navigating Poland's complex tax system? Our expert team at BIZ PARTNER provides comprehensive tax consulting and compliance services to ensure your business meets all regulatory requirements efficiently and cost-effectively.