The VAT rate that applies depends on the type of goods or services being supplied.

Poland currently applies several different VAT rates:

• 23% – Standard VAT rate
• 8% – Reduced VAT rate
• 5% – Reduced VAT rate
• 0% – Zero VAT rate (for specific supplies)

Applying the correct VAT rate is important to ensure your VAT returns are accurate and compliant with Polish VAT legislation.

1️⃣ Standard VAT Rate – 23%

The 23% rate is the standard VAT rate and applies to most goods and services unless a reduced or zero rate is specifically available.

Examples include:

• General retail sales
• Electronics
• Clothing and footwear
• Household goods
• Professional services
• Most business-to-business (B2B) services supplied within Poland

2️⃣ Reduced VAT Rate – 8%

The 8% VAT rate applies to specific goods and services defined in the Polish VAT Act.

Examples include:

• Certain food products
• Passenger transport
• Hotel and accommodation services
• Restaurant and catering services (subject to the applicable rules)
• Certain medical products
• Some construction and renovation work relating to residential property
• Cultural, sporting and recreational services in specific circumstances

The exact application depends on the type of supply.

3️⃣ Reduced VAT Rate – 5%

The 5% VAT rate applies to a limited range of essential goods.

Examples include:

• Basic food products
• Books
• Newspapers and certain publications
• Children's books
• Some agricultural products

Not all food products qualify for the 5% rate, so the applicable VAT rate should always be verified.

4️⃣ Zero VAT Rate – 0%

The 0% VAT rate applies only where specific legal conditions are met.

Common examples include:

• Intra-Community supplies of goods (B2B sales to VAT-registered businesses in another EU Member State)
• Exports of goods outside the European Union
• Certain international transport services

Supporting documentation is normally required to apply the 0% rate. If the required evidence is not available, a different VAT rate may apply.

⚠️ Important

The correct VAT rate depends on:

• the type of goods or services supplied;
• where the supply takes place;
• who the customer is; and
• whether the conditions for a reduced or zero rate are satisfied.

Using the wrong VAT rate may result in:

• additional VAT becoming payable;
• interest on underpaid VAT;
• penalties; or
• the need to submit corrected VAT returns.

💡 Good to Know

Some goods and services have very specific VAT treatment under Polish legislation.

If you are unsure which VAT rate applies to your products or services, we recommend seeking advice before issuing invoices.