Settlement Of Cross-Border Transactions

Taxpayers who are going to carry out transactions with entities from the European Union are under obligation to register for the transactions. In this case, the frequency with which the taxpayer will carry out the transactions does not matter. Conducting even a one-time intra-Community transaction makes it mandatory to register as a VAT-UE taxpayer. Registration for intra-Community transactions is made on the VAT-R form. After submitting a notification about the intention to carry out intra-Community transactions, the head of tax office registers the submitter as a VAT-UE taxpayer, confirming this fact on the VAT-5UE form.

Registration for intra-Community transactions is obligatory for:

– active VAT taxpayers planning to carry out intra-Community supplies or acquisitions, import services or provide services for which the taxpayer will be an EU ordering party,

– legal persons who are not taxpayers and other taxpayers carrying out intra-Community acquisitions of goods, if in a tax year their amount exceeds 50,000 PLN, importing services from EU taxpayers or providing services towards EU taxpayers, where the tax is settled by the EU buyer.

Taxpayers and legal persons who are not taxpayers may choose intra-Community acquisition of goods taxation by providing VAT-UE number to the supplier of the goods or by submitting a notice to the head of tax office about choosing the taxation.

VAT-UE taxpayers are obliged to notify the tax office about the conducted intra-Community transactions. For this purpose, they submit a VAT-UE form called summary information.

In the situation when an entity registered as a VAT-UE taxpayer ceases to carry out intra-Community transactions, they are obliged to inform about this fact in writing within 15 days. The notification constitutes grounds for removing the taxpayer from the VAT-UE register.

Removing an entity from the VAT-UE register may also take place ex officio in case the entity for 3 consecutive months or a quarter submits tax returns in which they reports no sales or acquisition of goods or services with tax amount for deduction or for 3 consecutive months fails to submit summary information despite such obligation.

Removal from the VAT-UE register ex officio will also take place in case a taxpayer is removed from the VAT register.

One of intra-Community transactions is intra-Community acquisition of goods. Intra-Community acquisition of goods is acquiring the right to dispose, as the owner, of goods, which through the conducted supply are dispatched or transported to the territory of the Member State other than the territory of the member state in which the dispatch or transport was started by the supplier.

Intra-Community acquisition takes place when:

– the buyer is a VAT taxpayer and the acquired goods are to be used in business activity of the taxpayer or the legal person who is not a taxpayer,

– the one carrying out the supply of goods is a VAT taxpayer.

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.