Tax rate by region Poland

Select region

Understanding SaaS VAT in Poland

Poland’s adoption of the EU VAT system in 2004 signified the nation’s commitment to aligning with European regulations. This standardized framework governs the taxation of goods and services within the EU, including digital services like SaaS. With a standard VAT rate of 23%, SaaS providers in Poland must meticulously adhere to the regulations to ensure fiscal compliance. It’s important to note that while there’s a reduced VAT rate of 8% applicable to certain categories, no digital goods or services currently benefit from this exemption. Therefore, understanding the VAT implications of SaaS sales in Poland is crucial for businesses operating within this dynamic landscape.

Mosaic image

Poland

Poland implemented the EU VAT system in 2004 to align its tax framework with European regulations.

Official government link: Krajowa Administracja Skarbowa

23.00%

E-products and services VAT/Sales tax rate

8.00%

Reduced tax rate

Reduced tax rate product categories

Digital publications like e-books, e-newspapers, and e-journals have a lower VAT rate of 5%.
Certain electronic services, such as online learning, webinars, and some software downloads, may qualify for a reduced VAT rate of 8%.

Exempted product categories

No digital goods or services are tax exempt

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies have to register as soon as goods are being delivered or services are being provided

Online registration possible

Yes

Local representative needed

No

Registration procedure

To register for VAT, you must complete an application form. You’ll need to provide the following company details:

Official company name and any trade name used
Full postal address, email, and website
Contact person’s name and phone number
National tax number (if applicable)
Country where your business is based
International bank account number (IBAN) and BIC
A declaration confirming you’re not VAT-registered within the EU
The date you started using the VAT scheme
All documents must be translated into Polish and accompanied by a sworn translation.

List of digital and electronic services liable for tax

Digital media like e-books, movies, music, and images, whether purchased or accessed through a service (e.g., Amazon Prime). These are often referred to as “Audio, visual, or audiovisual products” in tax contexts.
Cloud-based software and services like SaaS, PaaS, and IaaS.
Web-related services, including websites, hosting, and internet providers.
Online advertising and affiliate marketing programs.

Penalties

Late Filing of VAT Returns: A fine of up to 5,600 PLN (approximately 1,230 euros).
Late Payment of VAT: A fine of up to 5,600 PLN (approximately 1,230 euros). Additionally, late payment interest rates can range between 4% and 12% per year of the undeclared VAT amount.
Non-submission or Late Submission of VAT Returns: Fines up to PLN 20,160,000 or potential imprisonment if the non-compliance leads to non-payment of VAT.
Failure to Keep VAT Registers or Keeping Them Incorrectly: A fine of up to PLN 6,720,000.
Failure to Issue Invoices or Issuing Them Incorrectly: A fine of up to PLN 5,040,000.
Participating in Tax Fraud: Penalties can reach up to 100% of the VAT amount. This includes situations like deducting VAT from invoices issued by non-existent entities or for services not performed.  

Registration threshold

No threshold, non-resident companies must register for VAT

Filing interval

Monthly

Filing deadline

Within 25 days after the end of the reporting period

E-invoicing requirements

Still being implemented, full mandatory requirement starts April 1st 2026

Record keeping

Necessary to keep tax records for at least 10 years

Effortless Subscription Management and Billing

Managing Compliance and Record-Keeping

Compliance with VAT regulations necessitates meticulous record-keeping and prompt tax payments. In Poland, businesses are required to file VAT returns monthly, ensuring all pertinent financial records are readily available. Payment deadlines must be strictly adhered to, with requirements stipulating payment within 25 days after the end of the reporting period.

Additionally, VAT regulations mandate that businesses retain detailed tax records for a minimum of 10 years. To streamline this process and minimize potential errors, many businesses are adopting e-invoicing solutions. While mandatory e-invoicing requirements will come into full effect on April 1st, 2026, early adoption can significantly improve organizational efficiency and compliance. By proactively embracing e-invoicing, businesses can save valuable time and resources.

Multi-currency support

Insights and Best Practices

Navigating the complexities of VAT regulations in Poland requires careful planning and expert guidance. To ensure adherence to all applicable rules and regulations, consulting with qualified tax professionals is highly recommended. These professionals possess in-depth knowledge of the nuances of the system and can provide tailored advice and support.

Additionally, understanding where your customers are located is critical, as the place of supply and customer location significantly impact VAT obligations. When selling SaaS services to customers within the EU, the place of supply is typically considered to be the customer’s location. Conversely, sales to customers outside the EU would be subject to VAT in the country where the supplier is established. By meticulously adhering to these regulations, SaaS businesses in Poland can operate with complete confidence and ensure sustainable growth within this vibrant marketplace.

Ready to get started?

We’ve been where you are. Let’s share our 18 years of experience and make your global dreams a reality.

Talk to an Expert
Mosaic image