Value Added Tax (VAT) and Taxation in Poland. Investment and Business in Poland
Channel: Oruga Group - Corporate Law & Investment Services
Date: 2018-08-23

Oruga Group Business and Investment Law ► https://orugagroup.com/en

Today's video topic is #VAT - means Value Added Tax. 
The Polish Value-Added Tax Act of 11 March 2004 is based on European Union Legislation, and in particular, on the provisions of Directive 2006/112/EC on the common system of value added tax so-called the VAT Directive.

VAT rates are as follows:
23% is a standard VAT rate.
8% is a reduced VAT rate - applied to supplies of certain food items, medical products, hospitality services and community housing.
5% is also reduced VAT rate - applied to supplies of certain food items, such as bread, dairy products, meats, and selected publications.
 
Entities that wish to conduct activities subject to VAT in Poland must file a registration form before the date of the first taxable activity. Taxpayers who intend to conduct transactions between different EU countries must be EU VAT registered.

The annual sales that do not exceed PLN 150,000 are exempt from VAT. However, the taxpayers may choose to pay VAT #tax. It depends on the scope of entity activities and in many cases it is more convenient for the entity to choose being VAT registered. 
 
Foreign companies can become a VAT registered companies too, but in order to register for VAT purposes in Poland, entities without a registered office in Poland, permanent place of residence or place of business in the European Union must appoint a tax representative. Tax representatives are responsible for the tax liabilities of the taxpayers they represent.

Taxpayers file monthly VAT reports by the 25th of the month following the month in which the tax obligation arose, or quarterly, by the 25th of the month following the quarter in which the tax obligation arose. As a rule, VAT is paid to the tax office at the time of filing an appropriate VAT report. However, in the case of taxpayers paying VAT on a quarterly basis, monthly VAT withholdings must be made if the tax due results from the return filed for the previous quarter. Taxpayers with annual sales of less than EUR 1,200,000 are not required to make monthly withholdings (VAT can be paid quarterly).
VAT is deducted, partially deducted or reduced if the criteria are met. As for example the VAT on accommodation and gastronomic services is not subject for deduction.
 
The tax refund is usually paid into the bank account indicated by the taxpayer.
As a rule VAT is refunded if requested by the taxpayer in a tax report, within 60 days from the date of filing an appropriate VAT report.
The VAT refund period may be shortened to 25 days if additional criteria are met.
If no taxable sales are concluded, the taxpayer may apply for a tax refund within 180 days of filing the VAT tax return.

#investmentinpoland #businessinpoland

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