VAT refund in Poland

Last updated: 10.03.2025

VAT refund in Poland – what you need to know?

If a taxpayer shows an excess of input tax over output tax, they will have the option to get a VAT refund in the amount of this difference. There are two possible courses of action: the excess may either be allocated towards future settlements (to a VAT account) or paid out to the taxpayer’s bank account. This process is an integral part of the VAT system across EU countries.

Input VAT VS output VAT in Poland – what is the difference?

Under tax law, there are two classifications of VAT – input VAT and output VAT. Understanding their interaction is crucial as it determines whether a business entity must pay VAT or qualifies for a refund.

Input VAT

Input VAT refers to cost documents. It is therefore charged on goods and services that an entrepreneur purchases from their business partners in the course of their business activities.

Output VAT

Output VAT, conversely, is the tax rate applied to the sale of goods or services by an entrepreneur registered as an active VAT payer. It reflects the amount collected from clients as part of commercial transactions, ensuring compliance with EU VAT regulations.

Consequently, the VAT due is the net obligation reported in the VAT-7 declaration form and subsequently remitted to the tax office on a monthly or quarterly basis. This amount is derived from the net sales value, adjusted for the applicable VAT rates.

Importantly, before paying the output VAT, it is reduced by the input VAT. This is one of the reasons why posting cost invoices (company expenses) is extremely important – it allows you to reduce the amount you will have to pay to the tax office in VAT.

When can VAT be refunded in Poland?

As previously mentioned, before remitting output VAT to the tax office, the taxpayer must first deduct input VAT. This step is crucial not only because cost invoices provide an opportunity to optimize tax liabilities, but also because the difference between output VAT and input VAT may result in a negative balance. 

Such a scenario arises when, during a given accounting period, a company’s expenses exceed its sales revenue.

In cases where output VAT is lower than input VAT, the taxpayer encounters a VAT surplus. Under these circumstances, the entrepreneur is entitled to claim a VAT refund. This can be processed through one of the following two mechanisms:

• Transferring the VAT surplus to the VAT account – i.e. to the next settlement period. In this situation, the taxpayer does not receive the money directly. If in the following month or quarter the entrepreneur is obliged to pay tax (VAT due will be higher than input VAT), they will be able to use the funds from the surplus that they received on their VAT account to pay part or all of the tax due.
• Refund of VAT to a bank account – The taxpayer may opt to have the excess VAT refunded directly to their bank account. However, an official application must be submitted to the tax office for approval, following the standard procedures within the VAT system.

A less frequently chosen option, available only since 2013, is the transfer by the tax office of the VAT refund to the credit account of the taxpayer, to a bank or savings and loan association. In this case, the VAT surplus is used to partially repay the loan (as a form of bridge financing) and is done at the explicit request of the taxpayer.

How to apply for VAT refund in Poland?

By default, any surplus input tax is carried forward to the subsequent tax period, meaning the taxpayer retains the excess unless a different option is selected.

However, if the taxpayer wishes to receive a VAT refund—either partially or in full—directly into their bank account, they must formally submit a request by completing the relevant section in the JPK_V7 tax return:

• P_54 – enter the amount of input tax surplus that the taxpayer wants to receive in the bank account indicated.

Additionally, the taxpayer must select the preferred VAT refund timeframe, choosing from the available options.

VAT refund in Poland – deadlines

The taxpayer can receive a VAT refund to their bank account in 15, 25, 40, 6 or 180 days. Let’s discuss these terms one by one to determine the right one for each situation:

VAT refund in 15 days – for a non-cash taxpayer

Entrepreneurs may apply for an expedited VAT refund within 15 days, provided they meet the following criteria:

• if, for the last quarter or 3 months preceding the month with the VAT refund, at least 80% of the sales value was registered on the cash register and at least 80% of payments received were made by non-cash methods (e.g. payment card, bank transfer),
• if, for the 6 months immediately preceding the settlement period for which the entrepreneur is applying for a refund, the total sales value including tax, as recorded on the cash register, amounted to at least 40,000 PLN,
• when the amount of VAT refund does not exceed twice the amount of tax recorded in a given period (month, quarter) and the amount of VAT carried forward from previous declarations is not higher than PLN 3,000.

To secure a VAT refund within 15 days, the taxpayer must:

• fill in the VAT refund declaration with the refund indicated by the 25th day of the month following the settlement month in which the refund became possible at the latest,
• select the VAT Refund in 15 Days option in the declaration.

VAT refund in 25 days – accelerated procedure

A VAT refund within 25 days may be granted when the input VAT arises from:

• invoices documenting receivables that have been paid in full via the taxpayer’s bank account or the taxpayer’s bank account at a cooperative savings and credit union,
• other invoices documenting receivables, if the total amount of these receivables does not exceed PLN 15,000,
• customs documents, import declarations and customs decisions specifying the tax at the appropriate value, when the tax amounts have been paid by the taxpayer,
• the import of goods, settled in accordance with Article 33a, the intra-Community acquisition of goods, the provision of services for which the recipient is the taxpayer, or the supply of goods for which the buyer is the taxpayer, if the amount of tax due on these transactions is shown in the tax return.

Moreover, a VAT refund within 25 days is granted when:

• the amount of input tax or tax difference, not settled in previous settlement periods and shown in the declaration, does not exceed PLN 3,000,
• the taxpayer submits documents confirming the above-mentioned transfers to the tax office,
• the taxpayer, for the 12 months immediately preceding the settlement period for which they are applying for a refund, within 25 days:
  • was registered as an active VAT payer,
  • submitted the declaration part of the JPk_V7 file for each settlement period.

VAT refund in 40 days – for entrepreneurs issuing invoices in KSeF

Another non-standard VAT refund period is 40 days. It is granted when all the following conditions are met:

• all sales invoices are issued through KSeF, i.e. they are structured invoices,
• sales invoices document transactions such as:
  • domestic and foreign sales of goods and services,
  • receipt of all or part of the payment, i.e. documented by a down payment invoice,
• the excess of input tax over output tax to be refunded within 40 days resulting from JPK_V7 for the period in which the taxpayer applies for a faster VAT refund does not exceed PLN 3,000,
• the excess of input tax over output tax resulting from JPK_V7 for the previous period, which has been transferred to the current JPK_V7, does not exceed PLN 3,000,
• for at least 12 consecutive months preceding the period for which the JPK_V7 is submitted, in which a faster VAT refund is requested, the entrepreneur:

• is an active VAT payer,
• has submitted a JPK_V7 file for each period,
• has a bank account or SKOK number that appears on the white list of VAT payers.

VAT refund in 60 days – basic procedure

VAT refund to a bank account in 60 days is currently a standard procedure. Currently, because the basic refund period is to be reduced to 40 days with the amendment of the VAT Act, which is related to the introduction of the mandatory use of KSeF. It was supposed to come into force on July 1, 2024, but the change has been postponed until 2026.

VAT refund in 180 days – extended procedure

The tax office may extend the basic VAT refund period to 180 days if:

• the taxpayer did not make any sales (not even tax-exempt sales) during the settlement period, only costs.

In any case, apart from the 15-day period, the VAT refund period is counted from the date of submission of the JPK file showing the amount of excess input VAT. In the case of the 15-day shortened period, the date of expiry of the deadline for submitting JPK_V7 is counted.

How to apply for a VAT refund from abroad?

Taxpayers can also apply for a refund of foreign VAT which, in this context, is not contingent on the excess of input tax over output tax, but rather on the VAT paid on eligible expenditures incurred in a member state of the European Union. A VAT refund may be granted if the entrepreneur has borne any of the following costs within the EU:

• purchase of fuel,
• rental of means of transport,
• other expenses related to means of transportation,
• toll fees and road usage charges.
• travel expenses, such as the use of taxis or public transportation,
• accommodation costs,
• food, beverages, and restaurant services.
• admission fees to fairs and exhibitions,
• costs of luxury goods, entertainment and hospitality,
• other costs, e.g. for office supplies, repairs.

To be able to reclaim VAT from abroad, the taxpayer must meet all of the following conditions:

• Not maintain a registered office or permanent place of business, nor a residence or usual place of stay in the country in question.
• Be an active VAT payer.
• Not exclusively sell VAT-exempt goods or make use of a subjective VAT exemption.

Every expense incurred for which the entrepreneur wants to get a foreign VAT refund must be documented with an invoice or import document. Moreover, the corresponding application must be submitted on the VAT-REF form by September 30 of the year following the tax year to which the refund relates.

FAQ: VAT Refund in Poland