Hi everyone
In today’s video I am going to talk about reporting and refunds of Value Added Tax.
the default tax period for VAT in Poland is one calendar month. However, the VAT reporting period, quarterly
or monthly, can be selected by a business owner or management board when registering
to VAT . Polish monthly or quarterly VAT returns are
due on the 25th of the month following the reporting period end. Any Polish VAT due must be paid at the same
time. In the case where a business has opted to
file quarterly returns but is required to make monthly prepayments. If there is more VAT incurred than charged
then a Polish VAT credit arises this is due back to the VAT registered business from the
tax authorities. This credit can be refunded or carried forward
to offset any tax due in the next period. A business applying for a VAT refund in Poland
will be subject to time limits depending on the nature of the transactions involved. The current rules set a time limit of 60 days
for the Polish authorities to pay back a VAT refund. This limit will be reduced to 25 days when
a number of conditions are met. Where the conditions are not met, the 60 days
limit will remain applicable. Also if there were no sales during the reporting
period time limit can be prolonged to 180 days. The Polish VAT law also allows direct refunds
when input VAT (available for deduction) exceeds output VAT. A Polish business may also be entitled to
the VAT refund owed by another country under certain circumstances. Likewise, a foreign business having seat or
fixed place of business for VAT purposes outside of Poland may be, in most cases, entitled
to the refund of Polish VAT. If the respective countries belong to the
European Union, the procedure is substantially simplified due to the EU Directive, which
provides favourable rules for businesses based in EU countries that are seeking VAT refunds
in other EU countries – so called electronic VAT refunds are possible. Those are the main rules on VAT reporting
and refund. Hope you found this video useful. See you next time.