Value added tax (VAT) is Poland's most important turnover tax. Four rates apply in 2026: the standard 23% and the reduced rates of 8%, 5% and 0%. An entrepreneur selling domestically, buying goods and services from the European Union or supplying services to foreign customers must determine for each transaction the correct rate, the moment the tax obligation arises and the place of taxation. 2026 also brings the full roll-out of the National e-Invoicing System (KSeF).
VAT rates in 2026
| Rate | Examples of goods and services |
|---|---|
| 23% | Standard rate — applied by default to, among others, IT services, consulting, electronics, clothing and most B2B services. |
| 8% | Catering services (excluding alcoholic and highly processed drinks), construction works in buildings covered by the social housing programme, passenger transport, hotel services, part of medicines and medical devices. |
| 5% | Basic food (bread, dairy, meat, fruit, vegetables), printed books and e-books, specialist periodicals. |
| 0% | Intra-Community supply of goods, export of goods, international transport services, part of goods and services for public-benefit entities. |
There is also a broad group of activities subject-matter exempt from VAT: medical services provided by a medical profession, educational services provided by units of the education system, financial and insurance services, letting for residential purposes. Subject-matter exemption follows from Article 43 of the VAT Act and has no monetary limit.
Turnover-based VAT exemption — the PLN 240,000 limit from 1 January 2026
The so-called turnover-based VAT exemption is available to a taxpayer whose sales value in the previous year did not exceed PLN 240,000 (until the end of 2025 the threshold was PLN 200,000 — it was raised from 1 January 2026). In the first year of activity the limit is calculated in proportion to the number of days of activity. Once the threshold is exceeded, the obligation to register as an active VAT payer arises at the moment of that sale, and the sale itself is already taxed.
The exemption does not apply to all industries. Regardless of turnover, the following must register for VAT:
- sellers of precious-metal goods, new means of transport and excise goods;
- providers of legal, advisory (other than agricultural advisory) and jewellery services;
- sellers of consumer electronics/appliances, computers, cosmetics and car parts to consumers over the internet in situations listed in the Act.
VAT registration — how and when
Registration is made by filing VAT-R with the tax office competent for the taxpayer — in person, by post, via CEIDG or electronically using a trusted profile or e-ID. Deadline: no later than the day before starting VAT-taxable sales. For EU transactions, an additional VAT-UE registration is required, and the taxpayer receives a NIP number with the PL prefix.
After registration, the entrepreneur appears on the white list of VAT payers kept by the Head of KAS. The list allows checking the counterparty's status and the bank accounts reported to the tax office — a payment above PLN 15,000 gross to an account outside the list results in joint liability of the buyer and the loss of the tax-deductible cost.
National e-Invoicing System in 2026
KSeF — the central platform for issuing and receiving structured invoices — comes fully into force in 2026. The Ministry of Finance's roadmap sets three milestones: from 1 February 2026 KSeF 2.0 is mandatory for large taxpayers and recipients of invoices; from 1 April 2026 — for other entrepreneurs (except the smallest firms, whose aggregate invoiced sales do not exceed PLN 10,000 per month); from 1 January 2027 — for everyone without exception. An invoice issued in KSeF receives an inflow date corresponding to the moment its identification number is assigned, and its recipient can access it in their account. Entrepreneurs who issue an invoice outside KSeF despite the obligation face financial penalties.
Split payment mechanism (MPP)
For invoices worth at least PLN 15,000 gross that include items listed in Annex 15 to the VAT Act (including electronics, steel, fuels and construction services) mandatory split payment applies. The buyer pays the net amount to the supplier's current account and the VAT amount to their dedicated VAT account. Outside this list, split payment may be used voluntarily. Paying while bypassing mandatory split payment leads to joint liability and the exclusion of the amount from tax-deductible costs.
JPK, returns and deadlines
An active VAT payer files the standard audit file JPK_V7, which combines the return and the records. It comes in two variants:
- JPK_V7M — monthly file, filed by the 25th day of the month following the settlement period;
- JPK_V7K — quarterly file for small taxpayers; monthly records and a quarterly return, filed by the 25th day of the month following the end of the quarter.
The tax is paid in the same deadlines to the taxpayer's individual micro-account. The refund of excess input VAT over output VAT is made by default within 60 days, in the accelerated procedure (25 days) once the conditions are met, including the payment of all purchase invoices through split payment.
EU transactions and beyond
- WDT (intra-Community supply of goods) — the 0% rate provided the buyer is registered as a VAT-UE taxpayer, the goods have actually left Poland and the supplier has documents confirming the export.
- WNT (intra-Community acquisition) — the Polish buyer settles VAT in Poland under the reverse-charge mechanism, showing output and input VAT simultaneously.
- Export and import — export at the 0% rate with the appropriate customs documents; import settled in the VAT return under the simplified procedure (Article 33a) or paid at the customs and tax office.
Practical example
A marketing agency from Kraków provides services in 2026 to:
- a Polish company — invoice at 23%, issued in KSeF, included in JPK_V7M for the month of sale;
- a German company holding a VAT-UE number — invoice marked "reverse charge", shown in the return and in the VAT-UE information;
- an individual in France — settled under the OSS procedure or local registration (depending on the nature of the service).
In each of these situations the moment the tax obligation arises, the documentation obligation and the rate are different.
How Good Balance can help
VAT settlements, KSeF handling and JPK reporting are processes where a small mistake leads to corrections, interest and, in international transactions, the risk of joint liability. Good Balance keeps full books for entrepreneurs and companies, handles VAT and VAT-UE registration and the correction of returns. See our full accounting services and VAT invoice handling. Related articles: CIT tax and when a cash register is required.