Dorota Białas

Steuerberaterin (Polen)
Associate Partner
Phone: +48 71 60 60 402

The Provincial Administrative Court (PAC) in Cracow confirmed in its ruling of 19 March 2014 (file no. I SA/Kr 2054/13) that all a taxpayer must have to deduct full VAT are documents confirming the link between the tax and the taxpayer's business. The principle of VAT territoriality must not affect the wording of the Polish VAT Act.

The above-mentioned ruling is significant for foreign companies which have branch offices in Poland or are just registered for VAT here.

The ruling confirms the line of judgements that has been shaped since 2012 according to which a foreign company does not have to sell anything in Poland to be able to deduct VAT on its Polish purchases made by e.g. a branch office.

This means that registering for VAT in Poland may improve financial liquidity of foreign companies making purchases here. If you keep VAT records in Poland, in some situations you may apply for tax refund within just 25 days of the application date. At the other end of things, the maximum period for refund is 180 days. 

Given that the Polish tax authorities make it hard for foreign enterprises to obtain a direct refund, you may find it worth considering registration for VAT in Poland. We would be glad to share more information on this matter and to offer comprehensive tax advice in Poland