Expanding your e-commerce business into new markets can be both exciting and daunting. For foreign companies, particularly those selling goods and digital services into or from Poland, understanding VAT (Value Added Tax) registration is crucial.

Whether you're an EU or non-EU business, selling directly via your webshop or through marketplaces like Amazon, this guide will help you navigate the complexities of Polish VAT registration.

Why VAT registration matters?

VAT is a consumption tax levied on the sale of goods and services in Poland. When you sell to customers in Poland, you're required to charge VAT and remit it to the Polish tax authorities. This applies to both physical goods and digital services. Ensuring compliance not only keeps your business legal but also builds trust with customers.

Who needs to register for VAT in Poland?

EU-Based e-commerce companies

If you're an EU-based company, you must register for VAT in Poland if:

• Your distance sales exceed the EU-wide threshold of €10,000 per year.

This threshold covers distance sales of goods to consumers (B2C transactions).

• You store goods in Poland, such as using Amazon's FBA (Fulfillment by Amazon) or other third-party logistics (3PL) providers.

Non-EU-based e-commerce companies

For non-EU companies, the rules are a bit stricter:

• There is no threshold. Any sales of goods or digital services to Polish customers necessitate VAT registration. If you are selling through the marketplace, the marketplace is liable for the VAT as a deemed supplier. On the other hand, if you are selling through your webshop, the VAT compliance is solely on you.
• If you use local storage facilities in Poland, such as Amazon FBA, you must register for VAT regardless of the sales volume. Both the EU and the non-EU companies can use simplification processes in specific scenarios, like OSS and IOSS, but only if they are not storing their goods in Poland.

Selling through marketplaces

Selling through marketplaces like Amazon simplifies some aspects of e-commerce but doesn't exempt you from VAT obligations. Amazon, for example may require you to provide a VAT number to use their services in Poland, especially if you store goods in their fulfillment centers.

Direct sales via webshops

You retain full responsibility for VAT compliance when selling directly through webshops like Shopify. This includes:

• Charging the correct VAT rate.
• Issuing VAT-compliant invoices.
• Filing VAT returns and making payments to the Polish tax authorities.

Storing goods locally (Amazon FBA and 3PL)

Using local storage solutions like Amazon FBA or third-party logistics (3PL) providers in Poland necessitates VAT registration. This arrangement can offer faster shipping times and better customer satisfaction but requires diligent VAT compliance.

Steps to VAT registration in Poland

1. Determine the Need for Registration
Assess your sales volume and storage locations. If you meet the criteria mentioned above, proceed with the registration process.

2. Gather Required Documents
You'll need several documents, including:

• Proof of business registration in your home country.
• A copy of the certificate of incorporation.
• A power of attorney if you are using a tax representative in Poland.
• Identification documents of company directors.

3. Submit Your Application
You can register for VAT online or through a paper application. The application must be submitted to the relevant Polish tax office. This process is usually done through an intermediary in the form of a Polish tax representative.

4. Wait for Confirmation
Once your application is submitted, it takes about 4-6 weeks to receive your VAT number. During this time, the Polish tax authorities may request additional information.

5. Start Charging VAT
After receiving your VAT number, you must start charging VAT on your sales to Polish customers. The standard VAT rate in Poland is 23%, but reduced rates of 8% and 5% apply to certain goods and services.

Compliance requirements

1. VAT Invoices
Ensure all your invoices comply with Polish VAT rules. They must include:

• Your VAT number.
• Your customer's VAT number (for B2B transactions).
• Detailed description of goods or services.
• The VAT rate and amount.

2. VAT Returns
You must file regular VAT returns, typically monthly or quarterly. These returns summarize your sales, VAT collected, and VAT paid on business expenses.

3. EC Sales List (for EU B2B sales)
If you have intracommunity B2B transactions, you must also submit an EC Sales List, detailing your sales to other EU countries.

4. Intrastat Declarations
If your intra-EU trade exceeds certain thresholds, you must submit Intrastat declarations.

Seeking Professional Help? Use eVAT with confidence!

Polish VAT regulations can be intricate, and the process may seem daunting for businesses unfamiliar with the system. Using eVAT's Premium Service Providers eliminates pitfalls and significantly reduces stress businesses usually face. eVAT's Premium Service Providers will:

• Guide you through the registration process: A dedicated consultant will ensure your application is complete and filed correctly, saving you time and potential delays.
• Navigate the VAT representative requirement: If applicable, a Premium Service Provider handles VAT compliance on your behalf.
• Ensure compliance with filing and payment requirements: Staying on top of VAT filing deadlines and payments is crucial. A dedicated Premium Service Provider will help ensure timely compliance.
• Address specific VAT-related queries: Whether you have questions about the distance selling threshold, VAT group registration, or special VAT schemes, a Premium Service Provider will provide tailored advice based on your unique business situation.

Don't navigate the complexities of Polish VAT alone. Contact eVAT today Contact eVAT today to learn more about our Premium Service Providers network and gain the confidence you deserve!

Conclusion

Expanding into the Polish market can be lucrative for foreign e-commerce companies, but understanding VAT registration and compliance is crucial. Whether you're selling goods through Amazon or goods and digital services via your webshop, ensuring you meet all VAT obligations will keep your business running smoothly and legally. By following the steps outlined above and seeking local expertise when needed, you can navigate the Polish VAT system with confidence.

Happy selling in Poland!