VAT (Value Added Tax) is an indirect tax on goods and services that applies in Poland and across the EU. The final consumer effectively bears the cost; a business merely collects it and passes it on to the tax office (Urząd Skarbowy, US). Here’s what applies in 2026: rates, the exemption threshold, registration rules, and how VAT works for IT and B2B contractors.

Who has to charge VAT: Płatnik VAT

Anyone who, under Art. 15(1) of the VAT Act*, has the status of a VAT taxpayer, Płatnik VAT, must account for VAT in Poland. In particular:

  • legal entities registered in Poland, such as Sp. z o.o. (an LLC-equivalent);
  • individuals running a sole-trader business (działalność gospodarcza).

Act of 11 March 2004 on Tax on Goods and Services (Journal of Laws 2004, No. 54, item 535, as amended): link to the original.

Becoming a VAT payer, voluntarily or because it’s mandatory, requires filing form VAT-R with the tax office before your first taxable transaction. Filing itself is free (only the paper confirmation of registration costs PLN 170).

Certain 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).

Polish businesses usually quote prices net of VAT rather than gross. The gross amount on an invoice = net amount + VAT amount. Polish accounting distinguishes VAT należny (output VAT, added to your sales) and VAT naliczony (input VAT, paid on your purchases). The difference is what you owe the tax office, due by the 25th of the month following the reporting period.

VAT rates in 2026

The same four VAT rates that have applied for several years remain unchanged in 2026:

  • 23%: the standard rate, covering most goods and services, including domestic IT services;
  • 8%: e.g., 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.
The temporary “anti-inflation shield” 0% rate on basic food is long gone. It expired back in 2024. Basic groceries are now taxed at 5% in 2026.

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. The change comes from 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 outside active VAT registration and mark your invoices “zw.” (short for “zwolniony,” meaning exempt). 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). You need to file an updated VAT-R form to do so.

The exemption never applies to the activities listed above (legal, consulting, jewellery, etc.). Those businesses must be active VAT payers regardless of turnover.

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

IT contractors and other B2B businesses need to know a few extra rules:

  • Services for Polish businesses are taxed at the standard 23% rate.
  • Services for businesses in other EU countries (Art. 28b of the VAT Act) are subject to 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.
  • Importing services (buying services from a foreign supplier) also uses reverse charge, but now 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. If your combined EU distance sales stay under €10,000 per year, Polish VAT applies as normal; above that threshold, you can register for OSS and settle VAT for all EU sales through a single return instead of registering in every country separately. OSS does not apply to B2B services. Those use the reverse charge described above.

Split payment and the VAT account

Polish banks open a dedicated Rachunek VAT (VAT account) alongside a business’s regular account. This is 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, the invoice 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.

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 (the “zw.” status).

What if I provide IT services to a client in Germany?

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), which 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 from exemption); Art. 28b (place of supply for B2B services); Art. 108a (split payment) and Annex 15.

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.