LTC Corporate Services Your English-Speaking Accountant & HR and Payroll Service Provider in Poland
Should you register for VAT in Poland?
Generally, if you are – supplying your products and services within the territory of Poland; or – importing products into Poland from within, or outside the European Union; or – exporting products from Poland within, or outside the European Union,
you need to register for VAT (Value Added Tax) in Poland.
VAT or Value Added Tax is a tax charged on most business-to-business and business-to-consumer transactions in all the countries of the European Union, and in a growing number of other countries. The standard VAT rate applicable in Poland is 23%. Some products such as books, certain pharmaceutical products, and food products are covered under lower VAT rates such as 8%, 5%, or even 0%. If you own an EU business or your business is already VAT registered in another European country, and looking to sell to Polish end customers, you may not be required to register for VAT in Poland as long as you do not exceed the distance selling threshold of EUR 10.00 with Polish end customers. Distance selling refers to the sale of goods or services without the buyer or seller being physically present simultaneously, applicable for instance for e-commerce transactions.
Please note: This threshold is not available if an EU Business is looking to store goods in Poland. Therefore, if you are an e-commerce business, there is a high likelihood that you will need to register for VAT in Poland.
VAT representation for European Union Companies
If you are subject to Polish VAT, it is important that you understand the implications of VAT on your business transactions clearly. The complexity of the VAT legislation is a growing concern for businesses. Proper management of VAT and other indirect taxes is essential, especially for companies involved in international trade, as they invariably encounter cross-jurisdictional issues and increasingly complicated tax risks.
High penalties for incorrect determination of tax liabilities and the fact that VAT is levied on the turnover, not the company’s profit result, means that the wrong interpretation of economic events may prove to be costly. If it turns out that your business is liable for VAT in Poland.
Obtaining the right advice or VAT representation is key to managing VAT to minimize such risks.
Furthermore, for VAT registration in Poland, a local bank account in Poland will be required, which can be challenging for a foreign investor.
We don’t just take care of the registration and periodical reporting and filings but can support you with the account opening as well.
Our experienced specialists will assist you with VAT registration, filings, and compliance
Our services begin with an initial analysis determining if the business has an obligation to register for VAT in Poland and cover all of the following:
Registration for VAT in Poland
Maintaining VAT registers
VAT monthly/quarterly reporting
Fiscal Representation services
Preparation, completion, and submission of:
EC Sales Listings
Liaising and managing relations with the relevant tax offices; and
Arranging deregistration from VAT
In addition to the above, we also advise on the applicability of rules, implementation of procedures, and disputes with tax authorities.
VAT representation for non-EU companies
Since it is challenging for non-European companies to register and manage the VAT compliant in EU countries, they often prefer to have a company within the EU countries and register such companies for VAT in the EU. But there are cases where a Polish VAT registration may be necessary for a non-EU business
For instance, a business client in one country may order goods from an intermediary, and the intermediary may arrange for the goods to be delivered directly from the supplier to the B2B client. Such movement of goods is called triangulation.
Now, in such a case, where the intermediary company is outside the EU, in order to zero rate the invoices involved in the scheme, the intermediary company must be registered for EU VAT, irrespective of whether the company itself is registered within the EU or not. Otherwise, the supplier company will charge full VAT at its local rate to the intermediary company. The transactions can be even more complex where there are more than one intermediary involved. You need not necessarily have a headquarter in Poland, but if your company is neither headquartered nor has a permanent establishment within the EU, and you conduct business that is subject to VAT in any of the 27 member countries (import, storage, organization of exhibitions/fairs, renovation/construction services as well as any sales or purchases made within the territory of the EU), you are obliged to assign a tax representative. The representative registers the company for the purpose of VAT in the member country where the transactions are made.
LTC Corporate Services can help to act as your tax representative, and provide the following services to fulfil your obligations relating to VAT:
Registering your company with the tax office
Preparation of documentation in compliance with the tax authority’s requirements (VAT registration)
Preparation of VAT and INTRASTAT declarations
Storage and management of documentation as well as record-keeping concerning VAT
Ensuring that the audit and tax proceedings are handled properly
Making an application for a VAT refund
Maintaining and completing necessary correspondence with the local tax administration.
We can assure you of the following features of our services:
Our specialists function with the highest standards of quality and commitment;
We take a unique approach in not only ensuring compliance but also, in efficient tax management for you as a whole
We function with clear and transparent procedures;
You can be assured that the confidentiality of your tax information will be maintained at all times; and
If you are interested in VAT Registration and Representation Services for Foreign businesses in other countries, you can find us here.
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