What taxes and fees must a company pay in Poland and how to do it?

Good day.

Companies and individuals who are not residents of Poland are taxed according to the same rules as residents of Poland. Legal entities that are engaged in activities in Poland or receive income must obtain a tax identification number (NIP) and register with the tax service. Among the main taxes in Poland, the value added tax (VAT) should be noted to a large extent.

Virtually all goods, works or services in Poland are subject to value added tax (VAT). Depending on the type of goods or services, the tax rates may differ:

• The basic VAT rate is 23%, but a reduction to 22% is possible from next year, which is currently being considered by the Polish legislator.

• The 8% rate applies to pharmaceutical and medical products, passenger transportation, temporary accommodation services and housing construction, among others.

• The 5% rate applies to goods such as bread, meat, dairy products, books and periodicals.

There is also a zero VAT rate that applies to the purchase and delivery of goods from EU countries to Poland.

In order to become a VAT payer, it is necessary to submit an application to the tax service, which is a free procedure. There is also a procedure for obtaining the status of a VAT payer within the EU (VAT UE), which has a similar procedure.

Every month by the 25th, the taxpayer is obliged to submit a declaration on the amount of VAT. Payment of VAT for the current month is made by the 25th of the following month.

An important place is occupied by corporate income tax (CIT). The tax base is the positive difference between the company's income and expenses for the reporting period, and the tax rate is 19%.

The corporate income tax return (CIT) is submitted once a year at the end of the year. Advance payment of tax can be independently determined every month and paid.

It is important to remember personal income tax (PIT), which is mandatory for everyone who receives income in Poland (for wages based on labor or civil law contracts, as a result of individual entrepreneurial activities, etc.).

Important! Anyone who intends to do business in Poland must pay basic taxes, which include those mentioned above. In this context, it is very important to have the support of an accounting specialist to be sure that the tax returns and reports are correctly completed and submitted.