VAT and VAT EU registration in Poland

Our Law Firm in Poland assist Polish and foreign companies in VAT and VAT EUR registration in Poland. We handle the whole process of obtaining Polish VAT and VAT EU number, represent client before Polish Tax Office, provide Tax Office with explanations and relevant information.

Obligatory VAT registration in Poland

VAT Act stipulates several situation when entrepreneur or company in Poland has to register as VAT payer.

First of all, every Polish entrepreneur has to obtain VAT number if sales during tax year exceed the limit of PLN 200.000 (around EUR 45.000). However, if business activity in Poland has been started during the tax year, this limit has to be calculated in proportion to the number of months remaining to the end of the calendar year.

For example, if you open company in Poland on 31st of January, the limit will be PLN 183.561,64.
PLN 200.000 (general limit) x 365 (days in the year)
/ 335
(days left from the date of Polish company formation)

Secondly, Polish company has to register as VAT Payer in Poland (regardless of amount of sale during tax year) if it operates in the field of specific business activity indicated in VAT Act. Therefore, Polish company can not use PLN 200.000 limit exemption if it, among others:

  1. sells precious metals, scrap, jewellery;
  2. sells goods subject to excise duty;
  3. renders legal and generally advisory (consultancy) services.

Facultative VAT registration in Poland

If Polish Company does not exceed sale limit or does not conduct business activity outlined in the “Obligatory VAT registration in Poland” section above, it may register voluntary as VAT payer in Poland.

Being VAT payer may be very beneficial because of the right to deduct input VAT in respect of expenses. Moreover in relations with business contractors (B2B) VAT is neutral. Therefore, being VAT payer may limit factual expenses of investment and in particular business activities is recommended.

VAT EU registration in Poland

Generally speaking company has to obtain VAT EU number if it conduct business activity with contractors having its seat in other member state of European Union.

Moreover, it is obligatory if company in Poland conducts “intra-Community delivery of goods” for the entity in other EU state and wants to use 0% VAT rate.

What is important, even if Polish company is not obligated to register as VAT payer in Poland, however it is conducting intra-community transactions, it has to obtain VAT EU number. It applies when polish entrepreneur  exceeded PLN 50,000t value of intra-Community acquisition of goods in a given tax year or it provides intra-community services for which the place of settlement of the transaction tax is the state of the purchaser.

It has to be also note, If Polish company is exempt from VAT, obtaining VAT EU number will not result in the loss of this exemption.

When Polish company should registered as VAT payer and obtain VAT EU number?

Regarding VAT registration, Polish company has to submit VAT application before the date on which the amount of PLN 200.000 limit is exceeded. Moreover entrepreneur in Poland has to file VAT registration form before the date of sale of goods or services which can not be exempted from VAT.

If company in Poland voluntary wants to register as VAT payer it should submit VAT application before the beginning of the month, in which it wants to be registered as VAT payer.

As to VAT EU, the VAT EU application should be submitted before first intra-community transaction. It is very important to file it before intra-community sale of goods to be entitled to use 0% VAT rate.