Receiving VAT tax refunds will be quicker

Polish Ministry of Finance instructed tax offices all around the country not to delay refunds of goods and services tax if the right for a refund is well-grounded and raises no doubts. According to the provisions of the goods and services tax act of 11 March 2004 which are currently in effect, tax officials have 60 days to verify whether a taxpayer is entitled to such refund.

Recently, officials from the Ministry of Finance send out a note to tax offices highlighting the need to pay out due refunds of the added value tax without unnecessary delay, before the expiry of the 60-day deadline. Polish taxpayers are to get their money back faster than before. On average, a taxpayer has to wait around 40 days before they receive a refund.

A taxpayer is eligible for a refund of VAT tax if the amount of the input tax they paid is greater than the amount of their output tax in a given reporting period. The refund is transferred into the bank account that the taxpayer indicated as appropriate for refunds. Each time a taxpayer reports a right to refund, fiscal officials need to verify whether the refund has been properly calculated and demonstrated in accounting documents.

For this reason, tax offices have 60 days to pay out the refund. However, if more than 60 days are needed to carry out verification proceedings, tax office may prolong the period, at the same time accruing interest for late payment which the taxpayer will receive if their refund is greenlighted. The proceedings may involve inspecting company settlements, settlements of the taxpayer’s suppliers and buyers, the actual course of the reported transactions. Moreover, the proceedings may be prolonged up to 3 months upon request of the Central Anti-Corruption Bureau, General Prosecutor, the Internal Security Agency or the Police.

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.