Submitting an incorrect VAT return in Poland can result in penalties from the Polish Tax Authorities. The consequences depend on the nature of the error, whether it is corrected promptly, and whether the mistake is considered an intentional attempt to avoid tax.

1️⃣ Genuine Errors in a VAT Return ❌

If a VAT return contains mistakes due to an oversight or administrative error, you should correct the return as soon as possible.

What should you do?

• Submit a corrected VAT return immediately after discovering the error.
• Pay any outstanding VAT together with any applicable late payment interest.
• Respond promptly to any requests from the Polish Tax Authorities.

Good to know: Correcting an error voluntarily before the Tax Authorities begin an audit can significantly reduce the risk of penalties.

2️⃣ Administrative Penalties ⚠️

If errors result in an understatement of VAT due or an overstatement of VAT recoverable, the Polish Tax Authorities may impose an additional tax liability.

Depending on the circumstances, this additional assessment can be:

• 15% of the tax discrepancy (in certain cases where the taxpayer corrects the error following a tax audit).
• 20% where a correction is made after the commencement of tax proceedings.
• 30% of the understated VAT or overstated refund in standard cases.
• 100% where the discrepancy relates to fraudulent invoices or invoices documenting transactions that did not actually occur.

The level of the penalty depends on the circumstances of the case and the taxpayer's cooperation with the authorities.

3️⃣ Deliberate Misreporting or VAT Fraud 🚨

Knowingly submitting false VAT returns or intentionally understating VAT is treated as a fiscal offence under the Polish Fiscal Penal Code.

Examples include:

• deliberately omitting taxable sales;
• claiming VAT on fictitious invoices;
• knowingly submitting false declarations;
• participating in VAT fraud.

Depending on the severity of the offence, penalties may include:

• substantial financial fines;
• criminal fiscal proceedings;
• restrictions on liberty; or
• imprisonment in the most serious cases.

The exact penalty is determined by the court and depends on the value of the tax involved, the circumstances of the offence and whether it was intentional.

📌 Important

Submitting a corrected VAT return promptly after identifying an error is the best way to minimise potential penalties. If you believe a previously submitted return is incorrect, we recommend correcting it as soon as possible.