Is fiscal representative compulsory in Poland ?
Poland is a European Union Member State. If your business is established in another European Country appointing a tax agent or VAT representative is not compulsory.
Poland yes REQUIRES a tax representative for non EU businesses.
When and how do you have to register for VAT as taxpayer?
Registration in Poland is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.
A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (VAT7 / VAT7K (quarter)) provided by in Poland like other established companies.
This « trigger » is activated when :
– you deliver goods to individual particulars in Poland and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Poland to another State, being third country or Member state.
In most cases your VAT number in Poland will be similar to local format : 123-45-67-890
EU format : PL 1234567890.
What is the threshold for deliveries to particulars individuals in Poland ?
Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :PLN 160,000
PLN 50,000 (acq. exempted pers.)
Once registered for VAT with right to deduct, which VAT should your business apply in Poland ?
Standard VAT rate in Poland is 23%, while intermediate rate is -. On the other hand, reduced rate is 5% and 8%.
Application of Article 37 and 109 to 122 of the VAT Directive in Poland : exempt; exempt with credit
Please note that we open access to a detailed table of VAT rates per goods and services in Poland :
See our section https://becompliant.tax/vat-rates-poland
What is the scope of a fiscal representative in Poland?
Fiscal representative should always diagnose your operations in Poland and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda
What form for VAT returns and when to submit in Poland ?
Your fiscal representative in Poland will have to submit periodically on your behalf.
The VAT form you are expected to submit in Poland : VAT7 / VAT7K (quarter)
In Poland, the periodicity of VAT (locally called Podatek od towarow i uslug) is as follows :
Monthly VAT returns in Poland are due 25th of following month, always under decision of Administration.
Your VAT payment is due : Same as return.
Quarterly VAT returns in Poland are due 25th of following month -> prepayment in first two months of the quarter of an amount equivalent to one third of the total VAT paid in the previous quarter, always that Under decision of Admsintiration
Your VAT payment is due : Same as return.
Yearly VAT returns in Poland are due 25th of following month
What are the E/ICSL a fiscal representative submits in Poland ?
The ECSL you are expected to submit in Poland : VAT UE / UEK (25th of following month) – VAT Books JPK VAT
Your statistical declarations (Intrastat) in Poland : 10th of following month
What are the late registration penalties in Poland ?
Several penalties are assessed in Poland for errors in VAT accounting, for late submission of VAT returns or for late payment of VAT. The following are the penalties:
Late submission of VAT returns: for a VAT return that is submitted late, the individual responsible for the delay may be fined if the tax court determines that he or she is at fault. The fine is imposed on the basis of the Fiscal Penal Code, which determines the penal liability of natural persons for fiscal crimes.
Sanction 30% of the understatement of tax liability, if it is shown in the tax return the amount of tax lower than the amount payable or overstatement of the amount of input VAT.
Sanction 20% of the understatement of tax liability (overstatement of the amount of input VAT), in the case of a taxpayer corrects their settlement after the completion of a tax audit or in the course of the audit procedure. No sanction shall be determined when the taxpayer himself corrects the mistake and will pay the difference of tax to the opening of a tax audit or duty and the understatement of tax due/overstatement of input tax is made by a natural person who bears the responsibility for this act on the basis of Penalty Code.
Effective rate increased sanctions — 100% for the use of the so-called “empty” invoices.
Late payment of VAT: the interest rate applied to delayed payments of VAT is 200% of the National Bank of Poland.
Where to find official information about VAT in Poland
Poland transposed the European Directive into national regulation Act of 11 March 2004 on the goods and services tax (Journal of Laws No. 54, item 535 with further amendments)..
The Revenue administration responsible for VAT in Poland is :
Ministry of Finance (http://www.mf.gov.pl).
Who to contact for any doubt :
- VAT in the international trade – supplies of goods
- VAT in international trade – provision of services
- VAT exemptions
- VAT deduction and refund
- Reverse charge in local transactions
- Tax returns
- Related parties
- Split payment
VAT and INTRASTAT compliance in Poland
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