When starting a business in Poland, it is essential to determine the obligation to register for VAT purposes. The Value Added Tax Act specifies the situations in which an entity must register.
Primarily, these cases include when:
- The turnover of the business exceeds PLN 200,000 in the tax year.
- The business involves transactions subject to taxation. It's worth noting that these conditions apply to domestic entities.
Foreign companies conducting taxable sales in Poland are required to register, regardless of the turnover amount.
- The VAT-R form is used for registration (the same form is submitted for data updates). This document contains basic information about the company, such as the name and address of its headquarters, the purpose of the application, and information on the circumstances necessitating VAT registration. The VAT-R form also includes an option to register for intra-community transactions, which is necessary for transactions with entities from other European Union countries.
- Another crucial form is the NIP-8. This form is used to provide important tax-related information not included in the National Court Register (KRS), such as data for the Central Statistical Office (GUS), the Social Insurance Institution (ZUS), and the company's bank account details. Providing the bank account information is vital for listing it on the "white list," which is important for business-to-business payments.
Foreign entities seeking registration in Poland should submit an analogous NIP-2 form to provide the necessary information to the tax administration.
- In addition to the forms, certain company documents must be attached, including the company's articles of incorporation /company's agreement, an extract from the commercial register, or an agreement confirming the right to use the premises where the company is located and conducts its activities.
- For foreign entities applying for registration in Poland, it is also necessary to provide documents confirming VAT registration in their country of residence, along with sworn translations into Polish.
They should also provide a justification for registration and present an agreement with a Polish bank confirming the opening of a bank account if one has been established. All documents must be submitted no later than the day preceding the date of the first taxable transaction.
Where to Submit Documents?
The registration application is submitted to the Tax Office responsible for the company's registered office. For foreign entities, this would be the Tax Office for Warsaw-City Center (II Urząd Skarbowy Warszawa-Śródmieście). VAT registration in Poland is free. However, if a company requires a registration confirmation decision, it must select this option in the VAT-R application and pay a fee of PLN 170.
What If I Don't Register for VAT?
Failure to register for VAT within the required deadline may result in the imposition of penalties as specified in the Fiscal Penal Code. If a business is unable to submit documents on time for various reasons, to avoid penalties, it should promptly file a notice of committing a fiscal offense, also known as an "active repentance," submit any overdue tax declarations, and pay any outstanding taxes with interest.
Upon receiving the documents, the Tax Office verifies the application and subsequently records the entity on the list of active VAT taxpayers or requests additional documents or clarifications from the entity. To check the registration status, it is advisable to monitor the list of taxpayers maintained by the Ministry of Finance.
Additional questions? Feel free to contact us.