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Poland VAT Group implemented Jan 2023

Poland joins 18 other EU member states with VAT group simplification option

Poland has now introduced the option for related taxpayers to join under a single VAT number for reporting and exempt intra-group invoicing – ‘VAT group’. Thisis based on Article 11 of the EU VAT Directive 2006/112/EC.  This simplification and cashflow saving option was originally planned for 1 July 2022.

The terms include intra-group reporting to Polish SAF-T JPK requirements and increased the details of intra-group transactions that must be captured.

The new rules include the option for a single VAT return for related companies, a ‘VAT group, based on EU VAT Directive rules. Read more in our Polish VAT guide.

Related VAT registered resident business are able to consolidate their reporting into a single return and share the same VAT number. This means intra-group transactions would be made without VAT. Intra-group VAT transactions would be zero-rated, thus avoiding cash flow requirements.

Polish VAT Group features

The VAT Group, Podatkowa Grupa Kapitałowa, PGK, will be similar to those in other EU countries:

  • VAT groups will be a voluntary option between related businesses;
  • businesses within the group will become jointly and severally liable to each others’ VAT
  • intra-community transactions will be effectively zero-rated;
  • losing the status of a PGK group will have an impact on the status of the VAT group, which in consequence will cease to exist; and

Related VAT registered resident business will be able to consolidate their reporting into a single return and share the same VAT number. This means intra-group transactions would be made without VAT. Intra-group VAT transactions would be zero-rated, thus avoiding cash flow requirements.

Requirements to join a VAT Group

To join, members of a VAT group must be financially and/or organisationally linked.  Financial links include:

  • holds directly more than 50% of the share capital in;
  • holds more than 50% of the voting rights in; or
  • holds more than a 50% participation in the profits of

Organisational links include:

  • they either legally or actually, directly or indirectly, function under the joint management; or
  • their activities are organized, wholly or partly, in agreement with one another (article 15a(5) of the VAT Law).

Single VAT return via SAF-T

For Poland, which replaced the VAT return with JPK_VAT (SAF-T) reporting, this would mean a consolidated submission of the filing each month.

Compiling Polish or any VAT or GST returns is complex, time consuming and fraught with tax liability risks.  VAT Calc’s single platform VAT Filer can accurately complete any country filings with verified transactional data from our VAT Calculator or VAT Auditor integrated tools.

EU VAT Group rules

Poland has to introduced the scheme under the rules of the EU VAT Directive Article 11 of Directive 2006/112/EC. This stipulates that group members must be closely linked financially, economically and organisationally to be treated as one taxable person. Typically, this means at least 75% share control of companies within the group, shared management or shared business goals or activities. This can include a member of the group providing goods or services that are mostly / wholly consumed by other members of the group.

Poland will be expecting one nominated member of the group to take on responsibility for the consolidated return.

VAT Calc’s VAT Filer can accurately populate any country VAT return, ESL, Intrastat of SAF-T with verified data from our VAT Calculator or VAT Auditor services

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