Poland — Tax: Vat

Why this matters

Understanding Poland's VAT system is crucial for businesses and individuals relocating to Poland, as it affects the cost of living and doing business in the country.

Key facts

• The standard rate is 23%; reduced rates are 8%, 5% and 0%.
• The 8% rate covers services listed in Annex 3 to the VAT Act, such as water supply, passenger transport, restaurant and food services and some labour-intensive services like hairdressing.
• The 5% rate covers basic foods such as bread, meat, fish, fruit and vegetables, dairy products and certain children and hygiene products.
• Temporary measures such as moving some foods to 0% or fuels to 8% were reported on an older page and may have expired.

Steps

1. Registering for VAT — To register for VAT in Poland, a business typically needs to contact the Polish Tax Authority (Urząd Skarbowy) and provide required documentation, such as proof of business registration and identification. The exact process and required documents may vary depending on individual circumstances.
2. Deducting VAT as a business — Businesses in Poland can deduct VAT paid on business expenses when calculating their taxable income. However, the specific rules and requirements for VAT deductions may be complex and subject to change.