Homepage Taxes in Poland How to settle taxes with the tax office? Goods and Services Tax (Value Added Tax, VAT)

Goods and Services Tax (Value Added Tax, VAT)Print

Goods and services tax is a tax that we pay when we purchase various goods, e.g. food products, clothes, cosmetics, and when we buy services, e.g. from hairdressers, lawyers or doctors. This tax is most often already included in the price of the goods or services. Such a price is called the gross (VAT inclusive) price.

If the net price is given, this means that the tax should be added. However, prices in shops and service points are already VAT inclusive.

In Poland there are different VAT rates: 23%, 8%, 5%, and 0%. The rate depends on the type of goods and services. Further information is available on the website of the Ministry of Finance (http://www.mf.gov.pl/) or on websites dedicated to the topic e.g. http://www.podatki.biz or www.vat.pl.

Foreigners who conduct their own business activity consisting in the performance of various types of services will also have to pay the VAT that they imposed on their customers to the tax office. VAT is paid at the competent local tax office for the place of conducting business activity. In order to do so, one should fill in the VAT-7 form for monthly settlement or VAT-7K for quarterly settlement. The completed forms should be filed at the competent local tax office for the place of conducting business activity.

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