Before launching business activities in Poland, foreign investors should carefully assess whether their operations will trigger VAT obligations under Polish law.
As a rule, according to the Polish VAT Act, the following activities are subject to VAT in Poland:
-Supply of goods and services for consideration within the territory of Poland
-Export of goods, understood as the removal of goods from the territory of Poland outside the EU within the framework of sale
-Import of goods into the territory of Poland
-Intra-Community acquisition of goods for consideration within the territory of Poland
or
-Intra-Community supply of goods.
In general, the supply of goods and services within Poland, the import and export of goods, and intra-Community acquisitions and supplies are all subject to VAT. However, exceptions exist—such as certain business transfers or the free distribution of promotional samples related to business activity.
Foreign businesses must register for VAT before conducting their first taxable transaction. Non-EU entities are required to appoint a tax representative in Poland, while some EU businesses may benefit from the SME procedure introduced in 2025, which allows for simplified handling.
An important factor is whether the activity creates a fixed establishment for VAT purposes in Poland. This should be evaluated during the early planning stages, as it can significantly affect tax obligations and has often been a point of contention with tax authorities. In such cases, businesses may request an official tax ruling, although responses can take up to three months or more.
To ensure a smooth entry into the Polish market, it is advisable to engage a local tax advisor. This support is crucial for VAT registration, compliance, and correct invoice issuance in line with Polish regulations. For many years, Poland has required electronic submission of JPK-VAT files, and from 2026, mandatory e-invoicing via the KSeF system will be introduced. Ongoing changes to VAT rates and cash register requirements also make expert guidance essential.
With careful planning and the right support, foreign businesses can navigate Poland’s VAT system effectively and set a solid foundation for success.
– Monika Pastuszak
Tax Advisor
Taxenbach, Warsaw
