1. Introduction and Legal Framework

The Polish VAT system implements EU VAT Directive 2006/112/EC and is governed by the Act of 11 March 2004 on Tax on Goods and Services (Journal of Laws 2024, item 361, as amended). The year 2026 has brought fundamental changes to the Polish VAT system, particularly the implementation of the mandatory National e-Invoice System (KSeF) and an increase in the VAT exemption threshold. For foreign entrepreneurs planning business activities in Poland, understanding the current mechanisms of Polish VAT is crucial both for proper tax compliance and for optimizing cash flows.

The Polish VAT system currently represents one of the highest levels of digitalization in the European Union. Since 1 February 2026, the National e-Invoice System (KSeF) has been mandatory, requiring the issuance of structured invoices in XML format through the central platform administered by the Ministry of Finance. Reporting in the form of the Standard Audit File (JPK_VAT) also remains obligatory. Foreign entrepreneurs must be aware of these technical requirements, as non-compliance carries significant administrative penalties.

2. VAT Registration Obligations for Foreign Entities

2.1. Conditions Triggering Registration Obligation

A foreign entrepreneur without a registered office or fixed establishment in Poland is required to register as an active VAT taxpayer in several key situations. The first concerns making supplies of goods or providing services in Poland for which the purchaser is not the taxpayer under the reverse charge mechanism. The second situation arises when intra-Community acquisitions of goods exceed the equivalent of PLN 50,000 in a tax year. The third condition relates to the import of goods where the foreign entity acts as the importer. Finally, the registration obligation also arises in the case of distance selling from other Member States to consumers in Poland, when the EU threshold of EUR 10,000 has been exceeded and the OSS procedure has not been chosen.

2.2. Registration Procedure

Registration is carried out by submitting a VAT-R form to the head of the tax office competent for foreign entities, which is the Head of the Second Tax Office Warsaw-Srodmiescie, located at ul. Jagiellonska 15, 03-719 Warsaw. The VAT-R form can be submitted in paper form or electronically via the ePUAP platform. The application must be accompanied by documents confirming the taxpayer’s status in the country of residence, in particular an extract from the business register and a certificate of tax identification number. For entities from outside the European Union, the appointment of a tax representative with a registered office in Poland is additionally required.

The tax authority registers the entity within 14 days of receiving the complete application, and the registration confirmation is issued on a VAT-5 form. The 2025 amendment to the VAT Act introduced additional grounds for refusing registration (Article 96(4a)), which apply in particular to foreign companies without a tax representative and entities without complete identification notification in accordance with Article 5(2c) of the TIN Act.

2.3. Tax Representative

Entities from outside the European Union, EEA, and the Swiss Confederation are required to appoint a tax representative as a condition for VAT registration in Poland. The representative may be a legal person or an organizational unit without legal personality, having its registered office in Poland and registered as an active VAT taxpayer for at least 24 months preceding the submission of the application. The tax representative is jointly and severally liable with the represented entity for VAT obligations, which is significant when selecting an entity to perform this function. The representative is appointed by means of a written agreement specifying the scope of representation, and information about the representative is included in the VAT-R registration form.

2.4. VAT Exemption – New Threshold from 2026

Pursuant to the Act of 24 June 2025 amending the Act on Tax on Goods and Services (Journal of Laws 2025, item 896), from 1 January 2026, the VAT exemption threshold has been increased from PLN 200,000 to PLN 240,000. The exemption applies to taxpayers whose sales value did not exceed a total of PLN 240,000 in the previous tax year. For taxpayers commencing business during the tax year, the threshold is calculated proportionally to the period of business activity.

The transitional provisions of the amendment are of significant importance, as they enable taxpayers who exceeded the previous threshold of PLN 200,000 in 2025 but did not reach the new threshold of PLN 240,000 to benefit from the exemption. This means that these entities may return to the exemption from 1 January 2026 without observing the one-year waiting period provided for in Article 113(11) of the VAT Act. The increased threshold applies to both taxpayers with their registered office in Poland and entrepreneurs from other EU Member States benefiting from the exemption in Poland under the SME procedure (Article 113a of the VAT Act).

3. VAT Rates in Poland

3.1. Rate Structure

The Polish VAT system provides for four tax rates, the application of which depends on the type of goods supplied or services provided. The standard rate is 23% and applies to most transactions not subject to reduced rates or exemptions. The first reduced rate of 8% applies, among others, to construction and renovation services relating to residential buildings, medical devices, catering services excluding alcoholic beverages, and services related to culture and entertainment. The second reduced rate of 5% primarily covers basic food products, books and specialist journals, and certain hygiene products. Additionally, the 0% rate applies to intra-Community supplies of goods and exports, subject to meeting specific documentation requirements.

Summary of VAT rates applicable in Poland:

Rate	Application	Examples
23%	Standard rate	Most goods and services, electronics, clothing, professional services
8%	First reduced rate	Construction services (residential), medical devices, catering
5%	Second reduced rate	Basic food products, books, specialist journals
0%	Zero rate	Intra-Community supplies, exports (with documentation requirements)

 

3.2. Subject-Matter Exemptions

In addition to tax rates, the Polish VAT system provides for a catalog of subject-matter exemptions set out in Article 43 of the VAT Act. The most significant from the perspective of foreign entrepreneurs include exemptions for financial and insurance services, educational services provided by authorized entities, medical care services, and the supply of real estate after two years from first occupation. These exemptions are absolute, meaning that the taxpayer cannot waive the exemption and tax the transaction, except in certain cases concerning real estate, where it is possible to submit a declaration opting for taxation.

4. Reverse Charge Mechanism

4.1. Principles of Reverse Charge Application

The reverse charge mechanism is a special method of VAT settlement in which the purchaser, not the supplier, is obliged to account for output tax. For foreign entrepreneurs, this mechanism is of fundamental importance as it eliminates the need for VAT registration in Poland in many cases. Pursuant to Article 17(1)(4) and (5) of the VAT Act, the taxpayer is the purchaser of goods or services if the supplier does not have a registered office or fixed establishment in Poland and the transaction is taxable in Poland.

4.2. Scope of Application

The reverse charge mechanism applies in the case of import of services, i.e., the provision of services by foreign service providers to Polish VAT taxpayers. This particularly concerns services for which the place of supply is determined in accordance with Article 28b of the VAT Act, i.e., services provided to taxable persons for which the place of taxation is the country of the service recipient’s registered office. Reverse charge also applies to supplies of goods with installation or assembly carried out by a foreign entity and to certain intra-Community transactions. It should be noted that this mechanism does not apply in the case of B2C transactions, where the foreign seller is required to register for VAT in Poland or apply the OSS procedure.

5. VAT Invoices and the National e-Invoice System (KSeF)

5.1. Mandatory Invoice Elements

Article 106e of the Polish VAT Act sets out detailed requirements regarding the elements that a properly issued invoice must contain. Mandatory elements include the date of issue and the date of delivery of goods or performance of services, if different from the date of issue. The invoice must contain a sequential number assigned within one or more series, uniquely identifying the document. Full identification data of the seller and buyer are also required, including name or first and last name, address, and tax identification number. For intra-Community transactions, the EU VAT numbers of both parties to the transaction must be provided.

The invoice must precisely specify the subject of the transaction by indicating the name of the goods or services, their quantity or scope, net unit price, and net value broken down by tax rates. The tax rate, tax amount, and gross value must also be indicated. In the case of VAT exemptions, the legal basis for the exemption must be indicated. For transactions subject to the reverse charge mechanism, the invoice should contain the annotation ‘reverse charge’.

5.2. National e-Invoice System (KSeF) – Obligations from 2026

The National e-Invoice System (KSeF) is the central IT platform of the Ministry of Finance, which from 2026 constitutes the mandatory method for issuing and receiving invoices in B2B transactions in Poland. The system requires the issuance of structured invoices in a uniform XML format, which after being sent to KSeF receive a unique identification number confirming their authenticity. The legal basis is the Act of 5 August 2025 amending the Act on Tax on Goods and Services (Journal of Laws 2025, item 1203).

Mandatory KSeF Implementation Schedule:

Date	Scope of Obligation
1 February 2026	Obligation to issue invoices in KSeF for large taxpayers (gross sales value > PLN 200 million in 2024). Obligation to receive invoices through KSeF for ALL taxpayers.
1 April 2026	Obligation to issue invoices in KSeF for other entrepreneurs (including SMEs and sole proprietorships).
1 January 2027	Obligation for the smallest taxpayers (sales value documented by invoices < PLN 10,000 per month) – the ‘digitally excluded’.

 

5.3. Exclusions from KSeF Obligation

Pursuant to Article 106ga(2) of the VAT Act, the obligation to issue invoices in KSeF does not apply to: taxpayers without a registered office or fixed establishment in Poland (unless they voluntarily register in KSeF), taxpayers using special procedures (OSS, IOSS, margin scheme), and invoices issued to natural persons not conducting business activity (B2C consumer invoices). Consumer invoices may be issued in KSeF voluntarily, at the issuer’s discretion.

5.4. Offline Mode and Transitional Facilitations

The Act introduces an offline24 mode, which allows invoices to be issued outside the KSeF system in the event of technical problems or lack of internet access. An invoice issued in offline mode must be sent to KSeF no later than the next business day after its issuance. Additionally, until the end of 2026, transitional facilitations apply: the possibility of issuing invoices from cash registers, no penalties for errors related to invoicing through KSeF, and no obligation to provide the KSeF number in payment titles. From 1 January 2027, the KSeF number will become mandatory when making payments between VAT taxpayers.

5.5. KSeF Benefits – Accelerated VAT Refund

For taxpayers properly using KSeF, an accelerated VAT refund period of 40 days (instead of the standard 60 days) is provided. The conditions for obtaining the accelerated refund are: active VAT taxpayer status, use of a bank account on the whitelist, timely submission of declarations and records, and full and consistent issuance of structured invoices. Additionally, KSeF provides automatic invoice archiving for a period of 10 years, eliminating the need to store paper documentation.

6. Tax Declarations and Settlement Deadlines

6.1. JPK_VAT Structure

Since 1 October 2020, the VAT declaration has been integrated with the JPK_VAT file with declaration, which constitutes a single electronic document combining the functions of a tax declaration and VAT records. The JPK_V7M structure (for monthly settlements) or JPK_V7K (for quarterly settlements) consists of a declaration part containing aggregate data analogous to the former VAT-7 declaration and a records part containing detailed entries for each transaction. The records part includes sales and purchase registers with GTU codes for specific groups of goods and services and special procedure codes. Following the implementation of mandatory KSeF, KSeF invoice numbers are required in JPK_VAT.

6.2. Filing and Payment Deadlines

The JPK_VAT file must be submitted exclusively in electronic form by the 25th day of the month following each subsequent settlement month. The obligation to pay any excess of output tax over input tax falls on the same deadline. Taxpayers settling quarterly submit the records part of JPK_VAT monthly, while the declaration part is submitted quarterly. It should be noted that quarterly settlement is available only to taxpayers whose sales value including tax did not exceed the equivalent of EUR 4,000,000 in the previous tax year.

6.3. EC Sales Lists (VAT-UE)

Entities carrying out intra-Community transactions are required to submit EC Sales Lists (VAT-UE), which enable the exchange of information between tax administrations of EU Member States. The VAT-UE information contains data on intra-Community supplies and acquisitions of goods and the provision of services to taxpayers from other Member States for which the service recipient is the taxpayer. The deadline for submitting VAT-UE is the 25th day of the month following the month in which the tax obligation arose. The information is submitted only for periods in which intra-Community transactions occurred.

7. Right to Deduct Input Tax

7.1. Deduction Conditions

A fundamental principle of the VAT system is the taxpayer’s right to deduct input tax included in the price of goods and services acquired that are used to perform taxable activities. The condition for deduction is possession of a properly issued invoice documenting the acquisition and actual use of the purchase for taxable activities. In the context of KSeF, a structured invoice is considered received on the day the identification number for that invoice is assigned in the system. The right to deduction arises in the settlement for the period in which the tax obligation arose in relation to the goods or services acquired, but not earlier than in the settlement for the period in which the taxpayer received the invoice.

If the taxpayer did not make the deduction within the basic deadline, they may do so in the declaration for one of the next three settlement periods (for monthly settlement) or two subsequent periods (for quarterly settlement). After these deadlines expire, deduction is possible only by correcting the declaration for the period in which the right to deduction arose.

7.2. Limitations on the Right to Deduct

The VAT Act introduces a number of limitations on the right to deduct input tax. Complete exclusion from the right to deduct applies, among others, to the acquisition of accommodation and catering services (with the exception of ready meals acquired for passengers by carriers), as well as representation expenses. Special regulations apply to motor vehicles with a maximum authorized mass not exceeding 3.5 tons, for which deduction is generally limited to 50% of input tax, unless the vehicle is used exclusively for business activities, which requires keeping a vehicle mileage log and notification to the tax office on the VAT-26 form.

8. Refund of Excess Input Tax

8.1. Refund Deadlines

Where the amount of input tax exceeds the amount of output tax, the taxpayer has the right to reduce the amount of output tax for subsequent periods by this difference or to receive a refund of the difference to their bank account. The basic refund period is 60 days from the date of filing the return. An accelerated period of 40 days applies to taxpayers properly using KSeF, subject to meeting specific requirements (whitelist, timely declarations). An accelerated period of 25 days applies when the amounts of input tax result from invoices paid in full through the taxpayer’s bank account and when the amount of input tax carried forward from previous periods does not exceed PLN 3,000. An extended period of 180 days applies in situations where the taxpayer did not perform taxable activities in the given settlement period.

8.2. VAT Refund for Foreign Entities

Foreign entities not registered as VAT taxpayers in Poland may apply for a refund of input tax in Poland under the VAT Refund procedure. Taxpayers from other EU Member States submit applications through the electronic portal in their country of residence, which forwards the application to the Polish tax administration. The application is submitted by 30 September of the year following the year in which the right to refund arose. The minimum refund amount is EUR 400 for applications for a period shorter than a calendar year and EUR 50 for annual applications. Entities from outside the EU submit applications directly to the Second Tax Office Warsaw-Srodmiescie, with the refund being conditional on the principle of reciprocity – it is possible only for entities from countries that grant an analogous right to Polish taxpayers.

9. Intra-Community Transactions

9.1. Intra-Community Supply of Goods (ICS)

An intra-Community supply of goods means the dispatch of goods from Poland to the territory of another EU Member State in performance of a supply to a purchaser holding a valid VAT identification number for intra-Community transactions. ICS is subject to taxation at 0%, provided that the supplier possesses documents confirming the dispatch of goods from Poland. In accordance with EU provisions introduced under the Quick Fixes package, the application of the 0% rate requires possession of the purchaser’s EU VAT number verified in the VIES system and correct reporting of the transaction in the EC Sales List (VAT-UE).

9.2. Intra-Community Acquisition of Goods (ICA)

An intra-Community acquisition of goods is the counterpart of ICS on the purchaser’s side and means the acquisition of the right to dispose of goods as owner as a result of their transport from another EU Member State. ICA is taxable in Poland at the rates appropriate for the given goods, with the purchaser being both the taxpayer obliged to account for output tax and entitled to deduct input tax, which makes the transaction tax-neutral. The tax obligation for ICA arises upon the issuance of the invoice by the supplier, but no later than the 15th day of the month following the month of delivery.

9.3. Triangular Transactions

A special type of intra-Community transaction is the triangular transaction (chain transaction), in which at least three entities from different Member States participate, and goods are transported directly from the first supplier to the final purchaser. The simplified procedure for triangular transactions allows VAT to be settled only in the country of the final purchaser, eliminating the need for VAT registration of the intermediary in the country of destination of the goods. The condition for applying the simplification is correct reporting of the transaction in the EC Sales List (VAT-UE) with the appropriate designation and inclusion on the invoice of an annotation indicating the application of the simplified procedure.

10. Import and Export of Goods

10.1. Import of Goods

Import of goods, understood as the bringing of goods from the territory of a third country into the EU territory, is subject to VAT in Poland if Poland is the country of destination of the goods. The tax base is the customs value increased by the customs duty payable, excise duty, and additional costs (commissions, packaging, transport) incurred up to the first place of destination in the EU territory. As a rule, import VAT is payable to the customs authority before the goods are released for free circulation; however, taxpayers with AEO status or using the simplified procedure may settle import VAT in the tax declaration (simplified procedure under Article 33a of the VAT Act), which eliminates the need to commit funds at the time of customs clearance.

10.2. Export of Goods

Export of goods, meaning the dispatch of goods from the EU territory to the territory of a third country, is subject to taxation at the 0% VAT rate, provided that the exporter possesses a document confirming the dispatch of goods outside the EU territory. Such a document is, in particular, the IE-599 message in the AES (Automated Export System), which constitutes electronic confirmation of the removal of goods issued by the customs office of exit. In the absence of the IE-599 message, other documents confirming export may be used, including transport documents received from the carrier together with a TIR carnet or SAD document confirmed by the customs authority of the third country.

11. Special VAT Procedures

11.1. OSS Procedure (One Stop Shop)

The OSS procedure enables taxpayers making distance sales of goods and providing services to consumers in various EU Member States to settle VAT through a single electronic portal in the Member State of identification. This procedure covers intra-Community distance sales of goods (ICDS), certain services provided to consumers in other Member States, and certain supplies made by digital platforms. Registration for OSS is made by submitting an electronic application, and settlement takes place quarterly by submitting a VAT-OSS declaration. Taxpayers using the OSS procedure are exempt from the obligation to issue invoices in KSeF for transactions covered by this procedure.

11.2. IOSS Procedure (Import One Stop Shop)

The IOSS procedure is the equivalent of OSS for distance sales of goods imported from third countries in consignments with an intrinsic value not exceeding EUR 150. A taxpayer registered in IOSS collects VAT from the purchaser at the time of sale and settles it through a monthly declaration in the Member State of identification. The benefit for purchasers is exemption from import VAT at customs clearance, which significantly speeds up the delivery process. Entities from outside the EU are required to appoint an intermediary with a registered office in the EU who acts on their behalf and is jointly and severally liable for VAT obligations. The IOSS procedure does not cover excise goods or consignments with a value exceeding EUR 150.

11.3. VAT Margin Scheme

The margin scheme is a special method of taxation in which the tax base is the margin, i.e., the difference between the selling price and the purchase price, reduced by the amount of tax. This scheme applies to supplies of second-hand goods, works of art, collectors’ items, and antiques acquired from specific categories of entities, including natural persons not conducting business activities and taxpayers making exempt supplies. The margin scheme is also mandatorily applied by tour operators in relation to tourism services. Taxpayers using the margin scheme are exempt from the obligation to issue invoices in KSeF for transactions covered by this scheme.

12. Tax Controls, Penalties, and Liability

12.1. STIR System and Analytical Tools

The Polish tax administration uses advanced analytical tools to detect irregularities in VAT settlements. The STIR system (Clearing House IT System) analyzes in real-time transactions on taxpayers’ bank accounts for the risk of using the banking sector for tax fraud. If suspicious transactions are identified, the Head of KAS may block the taxpayer’s bank account for up to 72 hours, with the possibility of extension to 3 months. Additionally, the JPK_VAT system enables automatic analysis of data consistency declared by sellers and purchasers.

12.2. Contractor Verification – Whitelist and New Capabilities

Entrepreneurs are required to verify contractors in the VAT taxpayers register (the so-called whitelist) maintained by the Head of KAS. A planned amendment, expected to enter into force in July 2026, will introduce the possibility of checking a taxpayer’s VAT status up to 5 years back on a selected day, and not only at the time of checking. This will facilitate risk assessment and documentation of due diligence when verifying historical transactions. Payment to an account not on the whitelist may result in the inability to recognize the expense as a tax-deductible cost and joint and several liability for the contractor’s VAT.

12.3. Extended Joint and Several Liability from July 2026

The draft amendment to the VAT Act (planned entry into force: 1 July 2026) provides for a significant extension of the purchaser’s joint and several liability for the seller’s tax arrears. Previously, joint and several liability mainly concerned trade in goods from Annex 15 to the VAT Act (fuels, steel, electronics). From July 2026, liability is expected to cover intangible services listed in the new Annex 16, including advisory, management, advertising, accounting, and research services.

Importantly, even the use of the split payment mechanism (SPM) will not protect the purchaser from joint and several liability if they knew that the invoice documenting the service was issued by a non-existent entity, certifies activities that were not performed, or confirms activities performed under conditions of abuse of law. The only effective protection will be demonstrating the exercise of due diligence in verifying the contractor and the transaction.

12.4. VAT Penalties

The VAT penalty system in Poland includes an additional tax liability imposed by the tax authority in the event of irregularities in settlements. The basic penalty is 30% of the amount of understated liability or overstated VAT refund. Where the irregularity results from the use of an invoice documenting a fictitious transaction (a so-called blank invoice), the penalty is 100% of the tax amount arising from such invoice. An increased penalty of 20% applies when the taxpayer voluntarily corrected the declaration after the commencement of an audit but before its completion. Penalties are not imposed if the taxpayer, before the commencement of an audit, submitted a legally effective correction of the declaration together with justification for the reasons for the correction and settled the tax arrears with interest.

13. Planned VAT Changes for 2026-2027

13.1. VAT Warehouses

The Ministry of Finance plans to introduce the institution of so-called VAT warehouses (planned entry into force: 2027-2028), which is intended to provide real simplification for companies engaged in international trade. The procedure will enable the application of a zero VAT rate to supplies and acquisitions of goods and the provision of certain services within the VAT warehouse, allowing the deferral of the tax obligation until the goods are removed from the warehouse into domestic circulation.

13.2. Other Planned Simplifications

Among the planned changes are also: elimination of the obligation to pay VAT within 14 days of intra-Community acquisition of a means of transport, the possibility of simpler VAT deregistration without the obligation to submit the VAT-Z form, the introduction of an obligation to dispose of unused cash registers, and a ban on replacing fiscal memory in cash registers. The Ministry of Finance also announces work on a new VAT Act characterized by simpler language and a transparent structure, with the planned completion of work in October 2026.

14. Summary and Recommendations

The year 2026 has brought fundamental changes to the Polish VAT system, the most important of which is the implementation of the mandatory National e-Invoice System. For foreign entrepreneurs, it is crucial to understand that from 1 February 2026, all entities – regardless of size – must be prepared to receive invoices through KSeF, even if they themselves are exempt from the obligation to issue invoices in the system. Entities without a registered office in Poland may benefit from the exclusion from the KSeF obligation; however, they should consider voluntary registration due to benefits such as the accelerated 40-day VAT refund period.

The increase in the VAT exemption threshold to PLN 240,000 represents a significant facilitation for smaller entities, including foreign entrepreneurs using the SME procedure. At the same time, the planned extension of joint and several liability to intangible services from July 2026 requires increased diligence in verifying contractors, particularly in the advisory, marketing, and accounting sectors. In this context, it is recommended to establish cooperation with a local tax advisor experienced in serving foreign entities, who will ensure ongoing monitoring of legislative changes and adaptation of settlement procedures to current legal requirements.

 

 

This material is for informational purposes only and does not constitute legal or tax advice. Legal status as of 11 January 2026. For individual advice on a specific legal or tax situation, please contact our office.