Poland SME rules

SME Scheme – General features

Exemption

It is possible to opt for the SME scheme in Poland.

Transactions excluded from the SME scheme

The following transactions are excluded from the SME scheme: 

• Supply of buildings, constructions or their parts effected within the framework of the first occupation or before the first occupation (Article 43 paragraph 1 point 10 (a) of the VAT Act),
• Supply of buildings, constructions or their parts where the period between the first occupation and the supply of a building, construction or their parts was shorter than 2 years (Article 43 paragraph 1 point 10 (b) of the VAT Act),
• Construction areas or areas designed for being built upon, 
• Exempt cross-border supplies of new means of transport made from one Member State to another,
• Supply of goods listed in Annex 12 to the VAT Act, 
• Supply of goods subject to excise duty, within the meaning of the provisions on excise duty, except for: electricity (PKWiU 35.11.10.0), tobacco products, new means of transport included by the taxpayer to depreciable tangible assets under the provisions on income tax,
• Supply of the following goods, in connection with conclusion of a contract as part of organized system of concluding contracts over a distance, without simultaneous physical presence of the parties, using exclusively one or more means of direct communication over distance until the moment of conclusion of a contract, inclusive: cosmetic preparations and toiletries (PKWiU 20.42.1), computers, electronic and optical goods (PKWiU 26), electric devices (PKWiU 27), machines and equipment not classified elsewhere (PKWiU 28),
• Supply of retail- and wholesale parts and accessories for: motor vehicles, excluding motorcycles (PKWiU 45.3), motorcycles (PKWiU 45.4),
• Provision of the following services: legal services, services in the field of consulting, save for agricultural consulting related to farming or plant breeding, as well as animal raising or breeding, as well as consulting related to drawing up a plan of development and modernization of an agricultural farm, jeweller services, debt recovery, including factoring. 

National annual threshold

The information on the national annual threshold is available on TEDB.
 

Domestic SME scheme

Simplified VAT obligations

A small enterprise established in Poland who applies the SME scheme in Poland only (domestic SME scheme) is released from the following VAT obligations: 

• to VAT register
• to issue invoices
• to submit periodical VAT returns
• to submit administrative statements

Small enterprises applying the domestic SME scheme only must fulfil the following VAT obligations:

• to issue invoices only on demand of the acquirer
• to keep accounts (simplified sales records)

Cross-border SME scheme

The cross-border SME scheme applies in the following situation(s):

1. The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).
2. The small enterprise applies the SME scheme in other Member States than the Member State of establishment

Simplified VAT obligations

The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment. 

The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment. 

Currency

The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR. 

Way of submission

The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page: https://www.podatki.gov.pl/e-urzad-skarbowy/. 

Additional simplified VAT obligations

Exempt small enterprises applying the cross-border SME scheme in Poland are released from the following VAT obligations:

• to issue invoices for B2C supplies
• to issue full invoices for B2B supplies
• to submit administrative statements

Small enterprises applying the cross-border SME scheme in Poland must fulfil the following VAT obligation(s):

• to issue invoices for B2C supplies only on demand of the acquirer
• to issue full invoices for B2B supplies only on demand of the acquirer
• to keep accounts (simplified sales records)

Loss of simplified VAT obligations

Not applied

Transitional period

Poland does not apply any transitional period in case the national annual threshold is exceeded during the current calendar year.

Quarantine

Quarantine period in case of exclusion from the SME scheme

Small enterprises excluded from the SME scheme in Poland are not able to benefit from that exemption during a quarantine period. 

You can consult the quarantine period applicable in Poland on TEDB database.

Practical examples on the application of the quarantine period and its consequences are available in the Explanatory Notes.

Quarantine period in case of voluntary departure from the SME scheme

Small enterprises who decide to voluntarily leave the SME scheme in Poland are not able to benefit from that exemption during a quarantine period. You can consult the quarantine period applicable in Poland on TEDB database. 

Appeals

Domestic SME scheme

Appeals should be addressed to your Member State of establishment (MSEST). 

Cross-border SME scheme

Member State of establishment (MSEST)

Appeals related to the following topics should be addressed to MSEST:

• Union annual turnover
• Prior notification, correction and update to a prior notification
• Quarterly reports and correction of a quarterly report
• Exclusion for exceeding the Union annual turnover

Member State of exemption (MSEXE)

Appeals related to the following topics should be addressed to MSEXE:

• National annual turnover
• Denial to access the cross-border SME scheme in MSEXE
• Loss of simplified VAT obligations in respect of MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE

Calendar

VAT simplified procedures

VAT simplified procedures

The taxpayer providing passenger taxi services, except for the rental of passenger cars with a driver (PKWiU 49.32.11.0) may choose a lump-sum taxation of such services at a 4 per cent lump-sum tax rate.