Poland is a rapidly growing hub for international business within the European Union. As companies expand into this dynamic market, one crucial compliance requirement they must navigate is filing VAT returns in Poland. Whether you’re a small local business or an international firm with VAT obligations, understanding the process to file VAT returns accurately and on time is vital.
In this comprehensive guide, we’ll walk you through everything you need to know to stay compliant with Polish VAT laws—from registration to documentation, deadlines, and electronic filing.
What Is a VAT Return in Poland?
A VAT return in Poland is a formal tax declaration that businesses submit to the Polish tax authority (Krajowa Administracja Skarbowa – KAS). It outlines all the VAT collected on sales (output VAT) and VAT paid on purchases (input VAT) during a given reporting period. This report determines whether the business owes VAT to the government or is entitled to a refund.
Unlike some countries where manual filings are still allowed, Poland mandates electronic submissions through structured XML files known as JPK_VAT (Jednolity Plik Kontrolny – VAT).
Why VAT Compliance Matters in Poland
Poland has strict VAT compliance policies, and the tax authorities frequently audit businesses to detect fraud, tax evasion, or incorrect reporting. Failure to file or filing incorrect VAT returns can lead to:
- Monetary penalties
- Interest on unpaid VAT
- Suspension of VAT refund rights
- Reputation damage and audit triggers
Therefore, mastering the process to file VAT return is not just a regulatory formality; it’s a core business responsibility.
Who Is Required to File a VAT Return in Poland?
Any business that is VAT-registered in Poland must submit periodic VAT returns, regardless of its size, nationality, or volume of transactions. This includes:
- Polish-based companies
- EU companies doing business in Poland
- Non-EU businesses selling goods or services to Polish customers
- Online sellers operating through marketplaces like Amazon, eBay, etc.
- Foreign companies involved in cross-border B2B and B2C transactions
Even if a company has no taxable activity in a period, it must still submit a zero VAT return to remain compliant.
When Are VAT Returns Filed?
Businesses in Poland generally file VAT returns either monthly or quarterly, depending on their registration status and turnover:
Monthly VAT Returns
- Mandatory during the first 12 months of VAT registration.
- Required for businesses with large or irregular turnover.
Quarterly VAT Returns
- Available to businesses after a full year of monthly compliance.
- Suitable for smaller enterprises with consistent VAT activities.
Note: Once a business qualifies for quarterly filings, it must apply to the tax office to make the switch.
Overview of the Process to File VAT Return in Poland
The process of filing a VAT return involves several detailed steps that must be followed precisely. These include:
- VAT Registration
- Document Preparation and Bookkeeping
- JPK_VAT File Generation
- File Validation and Verification
- Submission Through Electronic Platforms
- VAT Payment or Refund Processing
- Post-Filing Record Keeping
Each of these steps is explained in detail below.
Step 1: VAT Registration in Poland
Before you can begin filing VAT returns, your company must register for VAT in Poland. This process typically involves:
- Applying for a NIP (Tax Identification Number)
- Submitting an NIP-2 or VAT-R form (depending on your company type)
- Registering your business address with the local tax office
- Appointing a fiscal representative (mandatory for non-EU companies)
Once registered, you’ll receive a confirmation certificate from the tax office and a Polish VAT number, which is required on all invoices and tax documents.
Step 2: Maintain Accurate VAT Records
Proper bookkeeping is the foundation for any accurate VAT return in Poland. Businesses must keep detailed records of:
- All sales and purchase invoices
- Intra-community acquisitions and dispatches
- Imports and exports
- Correct VAT codes and tax rates
- Foreign currency transactions with exchange rate documentation
These records must be maintained electronically and may be audited by the authorities at any time. It’s essential to ensure invoices are correctly structured with VAT numbers, registration details, and applicable tax rates.
Step 3: Generate the JPK_VAT File
Poland uses the JPK_VAT format for all VAT return submissions. This is a standardised XML file containing structured data about all taxable transactions. To generate this file:
- Use certified Polish accounting software that supports JPK file generation.
- Ensure it contains accurate sales and purchase entries.
- Each invoice must be classified by transaction type (domestic, EU, non-EU).
Mistakes in this file may result in rejection by the tax system or penalties during audits.
Step 4: Verify and Review the JPK_VAT File
Before submitting, the JPK_VAT file must be reviewed for:
- Correct VAT rates (23%, 8%, 5%, or exempt)
- Consistency of invoice numbering
- Proper vendor/customer VAT identification numbers
- Accurate totals for output and input VAT
This review stage is vital to detect and correct any discrepancies, as Polish tax authorities heavily scrutinize VAT data for errors and inconsistencies.
Step 5: Submit the VAT Return Electronically
Once your JPK_VAT file is complete and verified, it must be submitted to the Polish tax office electronically using:
- The e-Deklaracje system is Poland’s official online tax platform.
- Alternatively, you may use certified third-party software that integrates with the tax portal.
- For structured e-invoicing, Poland has introduced KSeF (Krajowy System e-Faktur), which will eventually become mandatory for most businesses.
Filing must be done by the 25th day of the month following the reporting period.
Step 6: Pay the VAT Due
If your VAT return indicates a tax liability, payment must be made by the same deadline. To complete the payment:
- Use your assigned tax office bank account
- Include your Polish VAT number and filing period in the payment reference
- Ensure the payment is sent in Polish złoty (PLN)
Delays in payment may lead to automatic interest charges and penalties.
Step 7: Handle VAT Refunds (If Applicable)
If your input VAT exceeds your output VAT, you may be eligible for a VAT refund. To receive the refund:
- Ensure all invoices are correctly recorded and valid
- Submit a bank account registered in Poland for receiving the refund
- Wait for tax authorities to review and approve your refund claim
Typically, VAT refunds are issued within 60 days, but it may take longer (up to 180 days) for foreign companies or if discrepancies are found.
Additional Compliance Requirements
Record Retention
Businesses must retain all VAT records and supporting documentation for a minimum of 5 years. This includes:
- Sales and purchase invoices
- Contracts
- Correspondence with tax authorities
- Payment confirmations
Language Requirements
While electronic filing is mandatory, documentation must be made available in Polish upon request. For foreign businesses, this may require translation or the help of local tax advisors.
Common Mistakes to Avoid
Many businesses struggle with VAT compliance in Poland due to the following pitfalls:
- Filing after the deadline
- Submitting incorrect JPK_VAT formats
- Using the wrong VAT rates
- Omitting required documentation for refund claims
- Failing to appoint a fiscal representative (non-EU companies)
Avoiding these mistakes is key to ensuring a smooth VAT return process in Poland.
How Can Foreign Companies File VAT Returns in Poland?
Foreign companies operating in Poland, even without a physical office, are subject to Polish VAT rules. Here’s how they can comply:
- Register for VAT voluntarily or mandatorily based on turnover and activity
- Appoint a Polish fiscal representative (required for non-EU firms)
- Submit monthly VAT returns (quarterly not available to new foreign filers)
- Maintain documents in Polish or have them translated
- Pay VAT liabilities and claim refunds as per Polish law
Understanding the process to file VAT returns for foreign businesses can be complex, but it’s necessary for lawful operations and risk-free expansion in Poland.
Final Thoughts
The VAT return in Poland process may appear technical and complex at first, but with proper preparation, the right tools, and an understanding of the legal framework, businesses can ensure seamless compliance. As digitalisation increases and e-invoicing becomes mandatory, it’s more important than ever to stay ahead of tax regulations.
From VAT registration to preparing and submitting the JPK_VAT file, each step must be performed accurately and on time to avoid penalties and protect your right to claim VAT refunds.
How Ease to Compliance Can Help
At Ease to Compliance, our firm specialises in helping businesses of all sizes with their VAT obligations in Poland. Our team of experts provides end-to-end support from VAT registration and fiscal representation to preparing and filing your JPK_VAT returns.
Whether you’re a local startup or a foreign company looking to expand into the Polish market, we ensure that your VAT return in Poland is filed correctly, on time, and with zero stress.
FAQs on the Process to File VAT Return in Poland
Question 1. What penalties do businesses face if they miss the VAT return deadline in Poland?
Answer: The Polish tax authority charges interest for late payments and imposes fines that can exceed PLN 500 if you miss the VAT return deadline.
Question 2. Can I correct a VAT return after I submit it in Poland?
Answer: Yes, you can file a corrected JPK_VAT file if you discover errors in your VAT return after submission. Always notify the tax office when you do.
Question 3. Do I need a local bank account to receive a VAT refund in Poland?
Answer: Yes, you must provide a Polish bank account to receive any VAT refund. The tax office will not transfer refunds to foreign bank accounts.
