Poland levies a value added tax (VAT) on the supply of most goods and services in the country, including intra-Community acquisitions and imports. The standard rate of VAT is 23%. There are also reduced rates of 8% and 5%, and certain supplies are zero-rated or exempt.

Reduced rate 8% supplies include:

Certain processed foodstuffs
Newspapers and magazines
Hotel services
Passenger transport
Medical equipment and pharmaceuticals
Certain agricultural services
Certain entertainment services

Reduced rate 5% supplies include:

Basic and unprocessed foodstuffs
Books

Exempt supplies include:

Public postal services
Certain medical services
Financial services
Certain insurance services
Certain educational services
Rental of immovable property for residential purposes

Zero-rated supplies include:

Export of goods
Intra-Community supply of goods
International transport services
Supplies with respect to aircrafts and sea vessels

Generally, for administering and discharge of VAT levies, the location of the supplier or the service provider is considered as the place of supply of goods or services, respectively. However, effective 1 January 2015, new place of supply rules for electronically supplied services, telecommunications and broadcasting services to consumers located in the EU Member States are applicable. As per this rule, electronically supplied services, telecommunications and broadcasting services will, in general, be taxable at the customer’s location irrespective of whether the customer is a taxable person (B2B) or a consumer (B2C). Simultaneously, taxpayers will have the possibility to opt for the use of the Mini One Stop Shop (MOSS) for these supplies of services in order to minimize their tax compliance burden.

Registration Threshold

The VAT registration threshold in Poland is annual taxable supplies of PLN 150,000. Voluntary registration is possible when taxable supplies do not meet the threshold.

Aside from the distance selling threshold of PLN 160,000, there is no threshold for non-residents without an establishment in Poland and registration is required if making any taxable supplies in the country unless subject to a reverse charge. Effective 1 October 2014, Poland notified the VAT MOSS an optional online service, for supply for certain specified services to customers in EU Member States. The scheme allows the taxpayer to obtain a single registration in any one Member State, as against the requirement to have registration in every Member State where the services are supplied. The MOSS scheme is discussed in detail below.

Mini One Stop Shop (MOSS) Scheme

MOSS is an optional online service provided to taxpayers who provide electronically supplied, telecommunication and broadcasting services to consumers in EU Member States. Under the scheme, opportunity is given to the taxpayer to register in one EU Member State (referred to as the Member State of Identification) and declare all supplies covered by the special scheme and pay the VAT due on these supplies. If a taxpayer exercises the option for MOSS, there is no obligation to register, file tax returns and issue VAT payments in each Member States where electronically supplied services, telecommunications and broadcasting services are carried out.

VAT due for supplies covered by the MOSS is paid via the Member State of identification. Payments have to be made to a special account designated for the MOSS supplies. Payments are linked to the underlying VAT returns, and has to be made when submitting the return, or at the latest by the 20th day of the month following the return period.

Note that, input taxes cannot be deducted by using MOSS. Input deduction has to be effected through the VAT refund mechanism.

A taxpayer using the MOSS can opt out of the scheme, regardless of whether it continues to supply services which are eligible for the special scheme, by providing a prior notice of at least 15 days before the end of the calendar quarter, to the Member State of Identification. Once opted out, the taxpayer will be excluded from using the MOSS in any Member State for two calendar quarters (quarantine period).

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