VAT rates in Poland 2024
Value Added Tax (VAT) is one of the key elements in conducting e-commerce activities in Poland. Understanding the current VAT rates can have a significant impact on your business decisions and pricing calculations. In 2024, there are four main VAT rates in Poland, as well as several exceptional cases to be aware of.
Currently applicable VAT rates in Poland
There are four VAT rates applicable in Poland. The standard rate of VAT on goods and services is 23%. Additionally, there are reduced VAT rates of 8%, 5%, and 0%. Furthermore, special VAT rates of 7% and 4% have been introduced for specific situations. All information regarding VAT rates and any changes in this regard can be found in the VAT Act of March 11, 2004, and its annexes. Additional information, including announcements and forms, is available on the podatki.gov.pl website.
- Basic VAT rate in Poland:
- Reduced VAT rates:
- 8% reduced rate: Items subject to 8% VAT include basic food products, selected medical and hygiene articles, renovations, construction and assembly works, as well as catering services. Until December 31, 2024, certain products used in agricultural production are also subject to 8% VAT, including soil quality improvement agents and substrates for cultivation.
- 5% reduced rate: Applies to specific food products as well as printed books and maps.
- Zero (0%) rate: Applies to intra-Community supplies of goods and exports of goods.
- Exceptional VAT rates:
- 7% VAT: This rate applies to lump-sum VAT refunds for farmers using a uniform rate.
- 4% VAT: Includes services provided by taxi drivers. However, it’s important to note that opting for this rate does not entitle the deduction of VAT.
The basic VAT rate is 23% and applies to most goods and services that are not subject to reduced rates.
Reduced VAT rates apply to specific groups of products and services.
More information on VAT rates in Poland can be found on our website: Poland VAT – The Rates & Registration.
Latest changes in VAT rates in Poland
Reduced VAT rate for cosmetic services in Poland
Starting from April 1, 2024, certain cosmetic services are subject to a reduced VAT rate of 8%, instead of the previous 23%. The reduced rate includes services such as care and beauty treatments, manicures and pedicures, and eyebrow and eyelash styling.
Change in VAT rate in Poland for selected food products
From the same date, April 1, 2024, there has also been a change in the VAT rate for selected food products listed in positions 1-18 of annex 10 to the VAT Act. Previously zero-rated food products are now taxed at a rate of 5%.
More about the change in VAT rate in Poland on food and its impact on e-commerce can be found in our article: https://amavat.eu/polands-vat-rate-change-on-food-from-april-1-2024-impact-on-e-commerce/.
VAT registration in Poland
Registration for VAT purposes in Poland can be done in three ways:
- In person at the tax office,
- By post,
- Electronically, using the Biznes.gov portal. The electronic registration process requires submitting the VAT-R form as an attachment to the application for entry or change of entry in the CEIDG.
When is registration necessary?
Individuals, legal entities, organizational units without legal personality, and individuals conducting business activities may become VAT payers. The obligation to register arises when the sales limit is exceeded or when certain goods and services are sold.
Exemption from VAT in Poland
In the case of exemption from VAT, taxpayers are not required to submit VAT returns or settle VAT, but they do not have the right to deduct VAT. Exemption may apply to non-taxable activities (subjective exemption) or may be related to not exceeding the sales limit (objective exemption).
Tax Office in Poland
Choosing the appropriate tax office depends on the type of activity and the revenues of the taxpayer. Entities conducting business activities as legal persons or organizational units without legal personality submit their registration applications to the tax office responsible for the entity’s registered office. However, individuals conducting sole proprietorship activities are subject to the tax office responsible for their place of residence.
VAT declarations
VAT payers can submit VAT returns monthly or quarterly. The procedure for submitting declarations involves submitting a Single Control File (JPK), which also includes the VAT declaration. The conditions for submitting quarterly declarations apply to so-called small taxpayers and stipulate that they must be active VAT payers for at least 12 months.
Intrastat in Poland
Entrepreneurs conducting business activities in Poland are obliged to report Intrastat, which is a European statistical system collecting information on intra-Community trade in goods. Reporting Intrastat is mandatory when exceeding the thresholds for the turnover of goods. These thresholds are PLN 6,200,000 for imports of goods and PLN 2,800,000 for exports of goods.
More about statistical Intrastat thresholds and submitting Intrastat declarations in Poland can be found in our article: https://amavat.eu/intrastat-thresholds-for-statistical-reporting-in-poland-for-the-year-2024/.
Polish VAT invoice data
A VAT invoice in Poland should include a number of details, including the date of issue, a unique identification number of the document, the VAT identification number of the client (if VAT must be paid), the full name and address of the issuer and recipient, a description of the transaction, the VAT rate, the amount of VAT, and the unit price of the goods or services.
Reverse Charge Mechanism in Poland
In the case of providing services to a counterparty from another EU country, the reverse charge mechanism applies in Poland. In such a situation, the recipient accounts for the tax on the service received. The invoice should appear as follows:
- No VAT rate and VAT amount,
- In the “VAT rate” field on the invoice, the abbreviation “n/a” or “np” (not applicable) should be used,
- Annotation regarding the applied reverse charge,
- EU VAT number with the prefix PL (if assigned).
An invoice for services subject to Reverse Charge in Poland must be issued no later than the 15th day of the month following the month in which the service was provided. Such a transaction must also be reported in the VAT-UE declaration by the 25th day of the month following the month in which the tax liability occurred.
Tax penalties in Poland
From 2024, penalties for tax offenses and misdemeanors in Poland have increased. The amount of penalties ranges from PLN 424 to PLN 84,840. The increase is due to the application of the minimum wage in Poland as a reference point.
Tax offenses are defined by the Fiscal Penal Code and can result in fines ranging from PLN 141.40 to PLN 56,560. Tax misdemeanors, on the other hand, may be punished with fines ranging from 1/10 to twenty times the minimum wage. In 2024, the minimum penalty for a tax misdemeanor is PLN 424, and the maximum is PLN 84,840.
Summary
For e-commerce sellers in Poland, understanding the current VAT rates is crucial for making informed business decisions and accurate pricing calculations. Changes have occurred since April 1, 2024, including the reduction of the VAT rate for cosmetic services and a change in the rate for selected food products. Remember that understanding tax regulations is essential for effectively conducting e-commerce activities in Poland. Stay up-to-date with current regulations to avoid misunderstandings and ensure proper tax compliance in your company.
With amavat®, you can focus on running your e-commerce business, knowing that all accounting and tax matters will be properly handled. Our knowledge and experience allow us to take care of your finances, providing you with peace of mind and time to focus on what you do best – growing your business!
In case of any doubts or need for professional advice, we offer comprehensive support in the registration and settlement of VAT within Europe through our VAT Compliance service: Contact us – amavat®.
Iga Turniak
