Obligation To File VAT Tax Returns To Go Away

The Finance Ministery revealed in an interview that the institution plans to get rid of the obligation for Polish companies to file VAT tax returns. In the tax returns, taxpayers showcase their transactions involving VAT tax settlement. Today, the document has to be submitted to the competent tax office on a monthly or quarterly basis. Failure to comply may result in losing one’s VAT number, i.e. being deregistered as a VAT taxpayer. If you are not a payer of the value-added tax, you are not entitled to deduct it and also lose credibility.

The Ministry says that soon such tax returns may become unnecessary, as fiscal authorities will acquire all information on VAT transactions in the Unified Control File (JPK). Unified Control File is a document that from January 2018 will be prepared monthly by all taxpayers. It is a new form of reporting, which soon will be compulsory for all entrepreneurs. AS JPK is to include the data that today is presented in tax returns, keeping both of those obligations in force seems unnecessary. However, any changes with regard to filing VAT tax returns need to be done through amendments to the act on the goods and services tax.

Wojciech Śliż, head of the goods and services tax department at the Ministry of Finance, says the disposal of tax returns will happen “in the near future”. Ministry officials are already working on the changes to VAT tax returns and regulations. A six-month vacation legislative period is expected before the new legal provisions are introduced. Polish company owners need to have time to get used to the change which may be called revolutionary.

From 1 January 2018, all tax returns will have to be submitted electronically. Monthly VAT tax returns need to be filed by the 25^th day of the month following a given month.

What This Means for Businesses in Poland

Tax policy changes in Poland have direct implications for both domestic and foreign-owned businesses. Companies operating in Poland must stay informed about regulatory developments to optimize their tax position and maintain compliance. The Polish tax system includes CIT (19% standard, 9% for small taxpayers), VAT (23% standard rate with reduced rates of 8% and 5%), and various sector-specific levies.

For international entrepreneurs and investors, understanding the Polish tax landscape is essential for business planning. Poland offers several attractive incentives including the Polish Investment Zone (up to 15 years of CIT exemption), R&D tax relief (up to 200% deduction), and the IP Box regime (5% effective CIT rate on qualified intellectual property income). Professional tax advisory can help identify the most beneficial structure for your specific situation.

The interplay between Polish domestic tax law and international tax treaties is particularly important for foreign-owned entities. Transfer pricing regulations, withholding tax provisions, and anti-avoidance rules (GAAR) require careful navigation to ensure both compliance and optimization.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our tax advisory services in Poland, or contact us for a free consultation.