VAT registration in Poland – practical tips and pitfalls

It should be emphasised that for entities starting their business activity, this threshold is calculated proportionally to the period of activity in the given tax year.

At the same time, the legislator has provided a list of activities that trigger a mandatory registration obligation regardless of the level of turnover. This includes, in particular, the provision of advisory, legal, jewellery and factoring services, as well as the supply of certain goods such as energy, tobacco products, passenger cars, new means of transport or buildings, and other goods listed in Annex No. 12 to the VAT Act.

To register an entity for VAT purposes, a VAT-R application must be submitted. This should be done before the tax obligation arises — in the case of exceeding the sales threshold, no later than on the day preceding its exceedance, and in the case of activities subject to mandatory registration, prior to performing the first taxable transaction.

However, the practice of tax authorities shows that the main difficulties for taxpayers do not result only from the interpretation of substantive law, but largely from procedural actions related to the registration process. The mere submission of the VAT-R form is not sufficient for an effective entry into the VAT register. Tax authorities carry out verification activities aimed at confirming the genuine nature of the business activity.

As part of these activities, the authority may request documents confirming, among others, the legal title to the premises (e.g. a lease agreement), business plans, information on sources of financing, and may also verify the existence of business infrastructure, including a website. In the case of entities with low initial capital (below PLN 5,000), particular attention is paid to explaining how planned investments, including the purchase of fixed assets, will be financed.

The actual existence of the business premises is also important – the authority may verify it, and correspondence is sent to the address indicated in the registration form. The deadline for providing explanations is generally 7 days. Failure to respond results in a repeated request, and further lack of response leads to a refusal of registration.

In light of the above, it is recommended to entrust the registration process to a professional representative who will ensure proper handling of correspondence and effective representation before the tax authorities, thereby minimizing the risk of a negative outcome of the registration process.

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Anita Tulak is a graduate of the Faculty of Law and Administration and a tax advisor at the National Chamber of Tax Advisors. She has passed through all levels of career in accounting and tax law, from assistant to partner of a law firm and worked for recognised private consulting firms and the “Big Four” company PwC.