The most people in Poland nowadays would like to officially register their sole proprietorship to work for themselves and make a net profit. At first glance, it seems that there is nothing complicated about this process. Every month in Poland there are thousands of new self-employed persons (JDG) according to statistics. However, there are many subtleties and pitfalls about taxation that you need to be aware of.
Undoubtedly, large companies, corporations and small business owners are obliged to pay income tax by filing regular returns. In addition, there is also value added tax, which many people forget about. In this article we will tell you more about what VAT is in Poland and how individual entrepreneurs can become VAT payers in 2025.
VAT in Poland – what is it?
We suggest that you start this article by answering the question of what VAT is in Poland. In fact, it is a type of tax that is applied all over the world, including Poland. Literally, it is a value added tax (VAT) that must be paid by an entrepreneur when selling goods or services. For example, in Poland, the basic VAT rate is 23%. Even when you buy goods in a supermarket, your receipt indicates how much you give to the state under the guise of VAT. However, VAT should not be confused with approach tax as they are completely different concepts.
What does it look like in real life? Polish entrepreneurs simply put the value of their goods or services at 23% more than the initial value. Thus, businessmen pay VAT, but in reality, this cost falls on consumers. More details about value added tax in Poland can be found in the official law at this link.
Who is obliged to have a VAT number?
Actually, everyone who runs a business in Poland must have a VAT number and pay this type of tax. However, there are many exceptions to this statement. Here is who is exempted from the need to obtain the status of VAT payer:
Entrepreneurs whose income amounted to less than 200 thousand PLN in the last calendar year. However, sellers of cosmetics, tobacco and alcohol do not fall under this rule.
All non-profit organizations. For example, this list includes hospitals, schools, universities, state theaters and charitable organizations.
Businessmen who sell precious metals, antiques, etc.
This is not a full list of exceptions to the VAT law. It is impossible to fit all the exceptions into this article, so we recommend that you read the law for yourself to see if you need a VAT number in your case.
VAT EU and VAT – what is the difference?
Now you know that VAT is a tax formally paid by entrepreneurs for transactions with goods/services. However, in Poland you can often find another type of tax called VAT EU. How do they differ?
Parameter | VAT | VAT EU |
|---|
Application | Charged domestically | Applicable for operations between EU countries |
Rate | Normal rate for Poland (23%) | Rates may vary from country to country |
Registration | Must be registered in Poland | Registration required when trading with other EU countries |
Taxation | Only for domestic transactions | For transactions with other EU countries (special conditions) |
It is important to understand that VAT EU regulates transactions within the EU and different rules apply for international trade. Simply speaking, you need to get a VAT EU number if you want to go outside of Poland and trade goods/services throughout Europe.
Step-by-step guide to registering a VAT number in Poland
So, how to you get a VAT number in Poland? It is actually quite easy to do it and you don't have to visit any institutions or government agencies in person. Everything can be done online.
Visit biznes.gov.pl and log in to your personal account using your trusted ePuap profile.
Find the Podatek VAT page and check the current data about you.
Make changes if required.
Select the desired type of tax liability, the type of declaration to be filed and also indicate the tax office where you are registered.
All that remains to be done is to sign the document with an electronic signature and send the application for review. The timeframe for processing the application is not known, but it usually takes about 2-5 days.
Where to check your taxpayer status?
If you want to verify that you are a VAT taxpayer within Poland, you should enter your NIP or REGON number on the official website. To check your VAT EU status, you should use the European Commission portal.
Need help to start a business, register a sole proprietorship or want to get advice on taxation in Poland? Migration agents from aksis are always on hand to provide you with comprehensive support on any issues related to business in Poland. Contact us in any convenient way to get advice!
