Information for Polish taxable persons

A. Conditions for vat exemption in the special scheme for small enterprises (sme special scheme)

Small enterprises having the registered office in Poland who run, or aim to start, their business activity in other EU Member States may benefit from the special scheme for small enterprises (SME special scheme). The VAT exemption can be applied to supplies of goods and/or services made within the territory of another EU Member State.

What should you do?

If you want to benefit from the SME special scheme from 1 January 2025 you have to:

• notify the Head of the Second Tax Office Warszawa-Śródmieście about the intention to benefit from the VAT exemption in another EU Member State;
• submit a prior notification through website of e-Urząd Skarbowy. The prior notification contains identification data, the EU Member State or Member States in which you intend to benefit from the VAT exemption, and the value of turnover generated in the territory of the EU, including Poland, during the current calendar year and the preceding calendar year divided into turnover in each EU Member State, including in Poland. Some EU Member States may require that you report your turnover generated during the two years preceding the current year and you must comply with any such requirement;
• obtain in Poland the individual identification number containing the suffix “EX”, hereinafter referred to as the “Polish EX identification number”.

Please note

If up until now you have benefited from the VAT exemption in Poland and you are not registered for VAT, you have to submit a VAT-R registration form before submitting a prior notification.

Conditions to be met

From 1 January 2025, the SME special scheme allows you to apply for the VAT exemption in EU Member States, other than Poland, which introduced such possibility in their territories, provided that you have met the following conditions:

1. the value of supplies of goods and/or services, exclusive of VAT, in a calendar year, for which the place of taxation is the territory of the EU, including Poland, did not exceed the amount of EUR 100.000 in the preceding and current calendar year;
2. additional conditions specified by the EU Member State in which you intend to benefit from the VAT exemption, including the condition that your annual turnover does not exceed the threshold determined by such Member State.

Please note

Each of the EU Member States may specify different conditions for the exemption in their territory.

Depending on the Member State, such conditions may concern:

• the amount of threshold, although it shall not be higher than EUR 85.000 or the equivalent in national currency;
• variations of thresholds for different business sectors, although none of such thresholds shall be higher than EUR 85.000 or the equivalent in national currency;
• a possibility to continue to benefit from the exemption until the end of the calendar year when the threshold of the annual turnover is exceeded, for example by 10%, 25% or with no ceiling set. This option cannot, however, be applied to a taxable person, whose turnover in the EU Member State granting the exemption exceeds EUR 100.000;
• a quarantine period for the taxable persons wishing to reapply for the VAT exemption (1 year or 2 years);
• excluding supplies of certain specified goods and/or services from the VAT exemption.

Important

Conditions for the exemption set by the Member States, including thresholds, may not differentiate between established and non-established taxable persons.

Regulations regarding the VAT exemption under the SME special scheme in force in the Member States may be found on the EU website

Please note

The amounts of supplies of goods and/or services in prior notification and quarterly reports are reported in EUR.

To convert the amount of annual turnover to EUR please apply the exchange rate published by the European Central Bank on the first day of the year, or, if there is no publication on that day, on the next day the exchange rate was published.

Next steps

B. Means of applying for the vat exemption in eu member states other than poland under the SME special scheme

1. A prior notification can be submitted in electronic form only. You will find the prior notification form on the website of e-Urząd Skarbowy
2. After receiving your prior notification and having considered information from tax authorities of the EU Member States, in which you have applied for exemption, the Head of the Second Tax Office Warszawa-Śródmieście will inform you about:
   1. assignment of the Polish EX identification number, or
   2. confirmation of the Polish EX identification number (if such number has already been assigned with regard to another EU Member State), or
   3. refusal to assign the Polish EX identification number, or
   4. rejection of the request to benefit from the VAT exemption in the EU Member State or in the EU Member States (if the conditions for exemption in any of the EU Member States have not been met).
3. The Head of the Second Tax Office Warszawa-Śródmieście has 35 working days to settle your case.

Please note

A working day means any day other than public holiday, Saturday or Sunday.

Important

If the conditions to assess the assignment or confirmation of the Polish EX identification number require additional verification, in order to prevent tax evasion or tax avoidance, the deadline to settle your case will be extended until the end of such verification.

When can you start benefitting from the exemption?

The VAT exemption under the SME scheme will apply from the day:

1. you are informed of the assignment of the Polish EX identification number:
   1. if the EU Member State, in which you intend to benefit from the exemption, confirmed the right to benefit from exemption in this State,
   2. at least one of the EU Member States, in which you intend to benefit from the exemption, confirmed the right to benefit from exemption in this State - if in the prior notification you have indicated more than one EU Member State, in which you intend to benefit from the exemption;
2. the Polish EX identification number is confirmed - if in the prior notification you have indicated more than one EU Member State, in which you intend to benefit from the exemption, and the Polish EX identification number has already been assigned for the purposes of benefitting from the exemption in the territory of one of those EU Member States, and another EU Member State has confirmed the right to benefit from the exemption.

When will the head of the second tax office warszawa-śródmieście refuse to assign the polish ex identification number?

When your annual EU turnover in the preceding or the current calendar year exceeds EUR 100.000, you will receive a decision on refusal to assign the Polish EX identification number. You will have right to appeal against such decision.

You will also receive a decision on the refusal to assign the Polish EX identification number, if all EU Member States indicated by you have refused your eligibility to benefit from the exemption on their territory.

When will you be informed on the refusal of your eligibility to benefit from the exemption?

If you fail to meet the conditions to benefit from the exemption specified by the EU Member State, which you have indicated in the prior notification, on the basis of the information transferred by the relevant tax authority of that Member State, you will be informed by the Head of the Second Tax Office Warszawa-Śródmieście about the refusal to benefit from the exemption in that EU Member State.

If you fail to meet the conditions to benefit from the exemption in all EU Member States, which you have indicated in the prior notification, you will also receive a decision on refusal to assign the Polish EX identification number. You will have right to appeal against such decision.

C. Other rights and obligations of a taxable person under the SME scheme

The extension of the vat exemption in subsequent member states

You can benefit from the exemption in a subsequent EU Member State.

The applicable rules and conditions to apply for the VAT exemption under the SME special scheme in subsequent EU Member States, as well as the verification of such exemption (including the deadlines), are the same as in case of applying for the VAT exemption in the EU Member State/ Member States other than Poland for the first time.

Cessation from the vat exemption

You can voluntarily cease to apply the VAT exemption in the EU Member State / Member States other than Poland under the SME special scheme. The cessation will be effective as of:

1. the first month of the quarter following informing of cessation - when you submitted the information on cessation in the first or second month of the quarter;
2. the second month of the quarter following informing of cessation - when you submitted the information on cessation in the last month of the quarter.

If you submit the information on cessation from the VAT exemption under the SME special scheme in all EU Member States, in which you benefitted from the exemption, the Head of the Second Tax Office Warszawa-Śródmieście issues a decision on deactivation of the Polish EX identification number. Such decision is effective immediately and you will have right to appeal against it.

Change of identification data

You can change your identification data, including address and contact data, through an update of a prior notification.

Change of turnover in prior notification

You can correct the previously reported values of supplies of goods and/or services in selected EU Member States in an update of a prior notification, should the data you have reported previously be incorrect.

Please note

After the assignment of the Polish EX identification number you will settle all such matters by submitting an update to a prior notification, which contains boxes intended for such purpose in order to facilitate the correction of reported information.

Errors in prior notification

If you detect errors in a prior notification before the assignment of the Polish EX identification number, you can withdraw the initial prior notification by submitting a subsequent prior notification with an information on withdrawal of the initial form. The information reported in the new prior notification replaces information reported previously.

Important

In such case the deadline of 35 working days begins on the date of submitting the new prior notification.

Quarterly reports

If you benefit from the VAT exemption under the SME scheme, you have to submit:

1. a quarterly report – within one month following the end of a quarter; the deadline is also applicable when the last day of the month is a Saturday or a public holiday;
2. a correction of a quarterly report - without delay, should there be any changes to the previously submitted quarterly reports.

IA quarterly report has to include, among others:

• your data, including the Polish EX identification number;
• the amount of turnover generated in each of the EU Member States in each quarter, with the turnovers in different business sectors reported separately, if applicable in the EU Member State, in which you apply for an exemption;
• the value of sales in the territory of Poland in each quarter.

Important

If the Polish EX identification number was assigned in a quarter following a quarter in which you submitted a prior notification, or in one of the following quarters, along with the quarterly report submitted for a quarter in which the Polish EX identification number was assigned, you submit quarterly reports for a quarter in which you submitted a prior notification as well as reports for any following quarters preceding the assignment of Polish EX identification number.

In the first quarterly report you omit the data on turnover, which you have already declared in the prior notification.

Exceeding of the eu turnover

When your annual turnover exceeds EUR 100.000, you have to submit a quarterly report for a period from the beginning of a quarter until the date you exceeded this amount. You have 15 working days since the day you exceeded that amount to do so. Exceeding the turnover threshold of EUR 100.000 in the territory of the EU will result in the issuance of a decision on deactivation of the Polish EX identification number by the Head of the Second Tax Office Warszawa-Śródmieście. Such decision is effective immediately and you will have right to appeal against it.

Other cases of deactivation of the polish ex identification number

If in addition to having exceeded the annual EU turnover amount of EUR 100.000:

• you cease to meet the conditions to benefit from the exemption in all EU Member States, in which you have benefitted from the exemption, or
• the exemption ceases to be applicable in all EU Member States, in which you have benefitted from the exemption, or
• you inform on ceasing of your business activity or a reasonable assumption that your activity has ceased occurs, such as no contact with you or your plenipotentiary,

– you will receive a decision on deactivation of the Polish EX identification number. Such decision is effective immediately and you will have right to appeal against it.

Please note

You may find the specific scope of data contained in:

• a prior notification, including guidelines on how to fill it in and any essential instructions,
• a quarterly report, including guidelines on how to fill it in and any essential instructions.

– in the Regulation of the Minister of Finance of … [link]