Are you an E-Commerce or Amazon seller doing business in Poland? If so, you should know about the Polish VAT rates and compliance requirements.
But don’t worry – you can navigate the Polish VAT system easily with some guidance and helpful tips.
In this blog, we’ll give you a detailed rundown of everything you need to know about VAT rates and compliance in Poland, so you can stay on top of your obligations and focus on growing your business.
Polish VAT Rates and VAT Compliance for E-commerce & Amazon Sellers
What is VAT?
Before diving into Polish VAT rates and compliance, let’s start by understanding what VAT actually is.
VAT stands for Value Added Tax, a consumption tax added to the price of goods and services at every stage of production or distribution.
This means that the end consumer pays VAT, but businesses along the supply chain collect and remit it to the government.
In simpler terms, VAT is like a sales tax applied to almost everything we buy, from a new pair of shoes to a cup of coffee at our favourite cafe.
It’s an essential source of revenue for governments around the world, and it’s a crucial part of the economy that affects everyone – whether you’re a consumer, a small business owner, or a multinational corporation.
Polish VAT Rates
What are the VAT rates in Poland? The standard rate is currently 23%, which applies to most goods and services, including those sold online. However, reduced rates also apply to certain products and services.
For example, a reduced rate of 8% applies to food products, medical products, books, and newspapers. In comparison, a reduced rate of 5% applies to items like medicines, medical equipment, and books in Braille.
You must ensure you’re charging the correct VAT rate on your sales to avoid penalties and fines. You should get help for Polish VAT compliance from an accountant.
VAT Registration in Poland
If you’re an e-commerce or Amazon seller doing business in Poland, you should register for VAT if you meet specific criteria.
For example, if your annual turnover from sales to Polish customers exceeds PLN 160,000 (approximately €36,000), you must register for VAT.
The same applies if you’re based outside of Poland but make sales to Polish customers and store goods in Poland or if you’re a marketplace seller and make sales through a Polish marketplace.
Once registered for Polish VAT, you must comply with all the relevant rules and regulations. This includes submitting regular VAT returns and paying any VAT due on time.
VAT Compliance for E-Commerce & Amazon Sellers
As an e-commerce or Amazon seller, there are some specific Polish VAT compliance requirements that you’ll need to be aware of.
Invoicing requirement
You must ensure you’re issuing invoices that meet the Polish invoicing requirements, including specific information, such as your VAT number and the VAT rates applied to your sales.
Distance Sales
You may be subject to distance selling rules if you sell goods to customers in Poland from another EU country.
If your sales to Poland exceed a certain threshold (currently EUR 35,000 per year), you must register for VAT in Poland and charge Polish VAT.
Polish VAT Due Dates
Poland’s VAT reporting and payment deadlines depend on the business size and VAT reporting period.
For monthly VAT returns, the deadline is the 25th day of the following month, while for quarterly VAT returns, it’s the 25th day of the second month after the reporting period.
However, the deadline is moved to the next working day if the 25th day of the month falls on a weekend or public holiday.
It’s important to note that late VAT filings and payments in Poland may result in penalties and interest charges, so it’s crucial to ensure that you meet the due dates to avoid these additional costs.
Frequently Asked Questions
Can I claim back VAT on my business expenses in Poland?
If registered for Polish VAT, you can claim back the VAT you’ve paid on your business expenses. This includes office rent, marketing costs, and travel expenses.
Claiming back VAT on your expenses can reduce your overall VAT liability. It’s essential to keep accurate records of your business expenses and the VAT you’ve paid to make these claims.
Do I need to register for VAT in Poland as an E-Commerce seller?
As discussed, if you sell goods to Polish customers and your annual revenue exceeds the VAT registration threshold of PLN 160,000, you must register for VAT in Poland.
This is regardless of your business type, whether a physical shop or an e-commerce business.
However, if you’re below the threshold, you may still choose to register for VAT voluntarily. Voluntary registration can be beneficial if you want to claim back VAT on your business expenses, as discussed in the previous question.
Additionally, registering for VAT can enhance your business’s credibility with customers, demonstrating that you are a legitimate and trustworthy enterprise.
What are the consequences of not complying with Polish VAT regulations?
Can I claim back VAT on my business expenses in Poland?
If registered for Polish VAT, you can claim back the VAT you’ve paid on your business expenses. This includes office rent, marketing costs, and travel expenses.Claiming back VAT on your expenses can reduce your overall VAT liability. It’s essential to keep accurate records of your business expenses and the VAT you’ve paid to make these claims.
Do I need to register for VAT in Poland as an E-Commerce seller?
As discussed, if you sell goods to Polish customers and your annual revenue exceeds the VAT registration threshold of PLN 160,000, you must register for VAT in Poland.This is regardless of your business type, whether a physical shop or an e-commerce business.
However, if you’re below the threshold, you may still choose to register for VAT voluntarily. Voluntary registration can be beneficial if you want to claim back VAT on your business expenses, as discussed in the previous question.
Additionally, registering for VAT can enhance your business’s credibility with customers, demonstrating that you are a legitimate and trustworthy enterprise.
Conclusion
VAT rates and compliance requirements can be a headache for e-commerce and Amazon sellers in Poland. So, take the time to familiarize yourself with the rules and regulations. Best of luck with your e-commerce journey!
Check out Sterlinx Global if you need help with the Polish VAT compliance of your business.
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