VAT (Value Added Tax) is an indirect tax on goods and services levied throughout the EU, including Poland. The official Polish name is “podatek od towarów i usług” (PTU), but “VAT” is used almost exclusively in practice. The cost is effectively borne by the final consumer: a business collects the tax and remits it to the National Tax Administration (Urząd Skarbowy, US). Below are the facts that apply in 2026.

Who has to charge VAT

In Poland, general VAT rules are set out in the VAT Act of 11 March 2004 (Journal of Laws 2004, No. 54, item 535, as amended), link to the original.

Under Art. 15(1) of the Act, anyone with the status of a VAT taxpayer (Płatnik VAT) must account for VAT, in particular:

  • all legal entities registered in Poland, such as Sp. z o.o. (an LLC-equivalent);
  • individuals providing services as sole traders (działalność gospodarcza).

Becoming a VAT payer requires filing form VAT-R with the tax office before your first taxable transaction. Filing is free (only a paper confirmation of registration costs PLN 170). All VAT liabilities in Poland are calculated and settled in PLN, never in EUR or USD.

Some activities require VAT registration regardless of turnover: legal services, consulting/advisory services (except agricultural advisory), jewellery services, sales of new means of transport, and sales of goods made of precious metals (Art. 113(13) of the VAT Act).

VAT rates in 2026

The standard, basic VAT rate in Poland remains 23% in 2026. Poland also keeps its reduced rates:

  • 23%: the standard rate, applying to most goods and services, including domestic IT services;
  • 8%: some construction and renovation work related to housing, some catering services, certain medical devices;
  • 5%: basic food products, books (including e-books), specialist periodicals, and certain hygiene products;
  • 0%: export of goods outside the EU and intra-EU supply of goods (WDT) to other EU member states.
No general VAT rate changes are planned for 2026: the “anti-inflation shield” 0% rate on basic food expired back in 2024, and groceries covered by it are now taxed at 5%.

VAT exemption: the PLN 240,000 threshold

Key 2026 change: as of 1 January 2026, the VAT exemption threshold (zwolnienie podmiotowe, Art. 113 of the VAT Act) was raised from PLN 200,000 to PLN 240,000 in annual net turnover, under an act of 24 June 2025 (Journal of Laws 2025, item 896).

If your annual turnover doesn’t exceed PLN 240,000, you can remain an exempt taxpayer and mark your invoices “zw.” (“zwolniony”). For businesses starting mid-year, the limit is prorated: PLN 240,000 × X/365, where X is the number of days you’ll operate before year-end.

2026 transition rule: if your 2025 turnover exceeded PLN 200,000 but stayed under PLN 240,000, you can return to the VAT exemption starting 1 January 2026 without the usual one-year waiting period (Art. 113(11) of the VAT Act); file an updated VAT-R to do so.

VAT for IT and B2B: reverse charge, VAT-EU, OSS

If you run an IT company in Poland and provide B2B services, a few specific rules apply:

  • Services for Polish businesses are taxed at the standard 23% rate.
  • Services for businesses based in other EU countries (Art. 28b of the VAT Act) fall under the reverse charge (odwrotne obciążenie) mechanism: you issue an invoice without VAT, marked “reverse charge,” and your client accounts for the tax in their own country. This requires VAT-EU registration (an extension of VAT-R) and filing VAT-UE summaries.
  • Services for businesses in non-EU (third) countries are also outside the scope of Polish VAT: you don’t charge Polish VAT, but you may still deduct the VAT paid on related expenses (input VAT).
  • Importing services from a foreign supplier also uses reverse charge: you, as the buyer, self-assess Polish VAT and report it in your JPK_V7 return.
  • OSS (One Stop Shop) applies only to sales to private consumers (B2C) in other EU countries, for example digital services or SaaS subscriptions sold to individuals. Below €10,000 in combined annual EU distance sales, Polish VAT applies as normal; above that threshold, you can register for OSS instead of registering for VAT separately in every EU country. OSS does not apply to B2B services, which use the reverse charge above.

The Polish terms you may encounter are VAT należny (output VAT) and VAT naliczony (input VAT); your monthly or quarterly VAT liability is the difference between the two. Monthly VAT reports (JPK_V7) must be filed by the 25th of the month following the reporting period; quarterly filers use the same deadline for the month following the quarter.

Split payment and the VAT account

Polish banks open a dedicated Rachunek VAT (VAT account) for business accounts, part of the split payment mechanism (mechanizm podzielonej płatności, MPP) in place since 2019.

Mandatory split payment applies when three conditions are all met: the invoice’s gross value exceeds PLN 15,000, it includes at least one item listed in Annex 15 to the VAT Act (construction work, electronics, fuel, coal, steel and other metals, car parts, waste/scrap), and both parties are VAT payers. The mechanism runs under an EU derogation valid at least until 29 February 2028. Missing the required “mechanizm podzielonej płatności” note on a qualifying invoice can trigger a penalty of 30% of the VAT amount.

Most IT services (without selling electronics as goods) generally aren’t covered by mandatory split payment: they don’t fall under Annex 15. The mechanism can still be used voluntarily, and it does speed up VAT refunds.

A Sp. z o.o. as a “second company” and the PIP 2026 reform

If your holding structure includes a Sp. z o.o. (a CIT payer) as a “second company” alongside B2B contractors, for example to hold IP or act as a holding entity, that setup is increasingly scrutinised under the 2026 PIP reform on B2B contract reclassification. Read more about this “two companies” model in our PIP 2026 series here.

FAQ

Do I need to register for VAT if my turnover is under PLN 240,000?

No, unless you provide one of the services requiring mandatory registration (legal, consulting, etc.). Below the threshold, you can remain an exempt taxpayer.

What if I provide IT services to a client in another EU country?

If the client is a business registered for VAT-EU, you issue an invoice without VAT marked “reverse charge” (you’ll need your own VAT-EU registration). If the client is a private individual, different rules apply (OSS, once your combined EU sales exceed €10,000).

Bibliography and legal basis

  • Act of 11 March 2004 on Tax on Goods and Services (Journal of Laws 2004, No. 54, item 535, as amended), original text.
  • Act of 24 June 2025 amending the VAT Act (Journal of Laws 2025, item 896), raised the VAT exemption threshold to PLN 240,000 from 1 January 2026, original text.
  • Art. 113(1), (9), (11), (13) of the VAT Act (threshold and exclusions); Art. 28b (place of supply for B2B services); Art. 108a (split payment) and Annex 15.
  • Accounting Act of 29 September 1994 (Journal of Laws 1994, No. 121, item 591, as amended).

Author: MojaFirma team.

This article is for informational purposes only and does not constitute legal advice. Every situation depends on the specific contract and individual circumstances. If something about your own situation isn’t quite clear, feel free to book a free consultation with our team.