Advice & answers

What is VAT in Poland?

By Good Balance Expert TeamPublished Last updated

VAT is the tax on goods and services (VAT\VAT\GST\DPH\MwST)

Standard rate 23%.

VAT (Value Added Tax) is a tax on the purchase of local consumer goods, products, services, and clothing.

As a rule, this tax is already automatically included in the price of a product or service (the BRUTTO price). If the price is given in NETTO, VAT is not included.

Different VAT rates apply in Poland. The rate depends on the type of product and service:

  • 23% – the basic VAT rate;
  • 8% – some food products and fruits, fertilisers, newspapers and magazines, some books, some pharmaceutical and medical products, passenger transport (buses and taxis), and hotel services;
  • 5% – not all fruits and nuts, spices, some books and publications
  • 3% – some food products, agricultural products, livestock, and fishery products.
  • 0% – export goods, international transport services, computer equipment, and digital data-transmission devices.

Exempt from VAT are:

healthcare, social insurance, education, and other government agencies.

A foreigner running a business in Poland is required to pay office VAT, which they add for their clients on goods/services.

Taxpayers who pay VAT monthly submit JPK V7M both as a declaration form and in the registration part by the 25th day of the month for the previous month.

On a quarterly basis, taxpayers submit the JPK V7M registration

- by the 25th day of the month following the month for which the submission is being made

- by the 25th day of the month following the month for which the submission is being made

the quarter for which the submission is being made

VAT is paid at the tax office competent for the place of business.

Remember: VAT is not your money – it is government money that you simply hold on your account temporarily.

Up to a limit of 200,000 zł per year you do not need to register as a VAT payer, but once earnings exceed the limit registration is required.

This article is for informational purposes only and does not constitute tax advice. Rates, limits and regulations may change — consult an accountant or tax adviser before making any decisions.

About the authors

Good Balance Expert Team — accounting & tax specialists

This guide was prepared by the Good Balance team, which handles accounting, payroll and tax compliance for companies and sole traders in Poland. Regulations change often — for advice on your specific situation, get in touch with our specialists.