VAT Refund In Poland – Everything You Need To Know

If a taxpayer in Poland reports an excess of input VAT over output VAT, they have the option to receive a VAT refund for the difference. There are two main choices: the surplus can be carried forward to offset future VAT liabilities (credited to the VAT account) or refunded directly to the taxpayer's bank account.

But how exactly does the VAT refund process work? And what about VAT refunds from foreign transactions? Let's dive in!

Input VAT vs. Output VAT – What's the Difference?

Tax law in Poland distinguishes between two types of VAT: input VAT and output VAT. Understanding the difference is crucial, as it determines whether a business must pay VAT or qualifies for a refund.

• Input VAT refers to the tax added to goods and services purchased by a business for operational purposes.
• Output VAT is the tax collected from sales of goods or services by a VAT-registered

A business must pay output VAT to the tax authorities in Poland, but before doing so, they can deduct input VAT. If input VAT exceeds output VAT for a given period, the business may claim a VAT refund.

When is a VAT Refund Possible in Poland?

A VAT refund occurs when input VAT surpasses output VAT, meaning business expenses outweigh sales revenue for the period. The taxpayer then has two options:

1. Carry Forward the VAT Surplus – The excess VAT is credited to the VAT account and applied to future tax liabilities.
2. Request a Direct VAT Refund – The surplus is transferred to the taxpayer's bank account after submitting a VAT refund request.

Since 2013, a lesser-known option allows businesses to allocate their VAT refund toward loan repayments, with the funds transferred directly to a designated bank or credit union in Poland.

Filing a VAT Refund Application in Poland

By default, any VAT surplus is automatically carried forward. However, businesses in Poland wanting a direct refund must file a request by completing the relevant section in their VAT declaration (JPK_V7):

• P_54 – Specifies the refund amount to be transferred to the taxpayer's bank account.

The taxpayer must also select a preferred refund timeframe.

VAT Refund Processing Timeframes in Poland

The time it takes to receive a VAT refund in Poland depends on the chosen method and eligibility criteria:

15-Day VAT Refund for Cashless Taxpayers in Poland

To qualify for a 15-day refund, a business must:

• Process at least 80% of sales through a cash register and receive 80% of payments via cashless methods (card, transfer) in the prior three months.
• Register at least PLN 40,000 in sales via a cash register in the previous six months.
• Ensure the VAT refund does not exceed twice the reported VAT amount for the period.

25-Day Accelerated VAT Refund in Poland

Businesses can qualify for a 25-day refund if:

• Input VAT is derived from invoices fully paid via bank transfer.
• The total value of unpaid invoices does not exceed PLN 15,000.
• They provide evidence of bank transactions related to the claimed VAT.

Additionally, businesses must be VAT-registered in Poland for at least 12 months and have consistently submitted VAT reports (JPK_V7).

40-Day VAT Refund for Businesses Using KSeF in Poland

From 2026, VAT-registered businesses in Poland exclusively issuing structured invoices via KSeF can benefit from a 40-day refund period, provided:

• All sales invoices are issued through KSeF.
• The VAT refund amount does not exceed PLN 3,000.
• The previous period's VAT surplus carried forward is also below PLN 3,000.
• The business has been VAT-registered in Poland for at least 12 months and regularly files JPK_V7.
• Their bank account appears on the official VAT taxpayer list.

60-Day Standard VAT Refund in Poland

Currently, the default VAT refund processing time in Poland is 60 days. However, this is expected to be reduced to 40 days in 2026 when KSeF becomes mandatory.

180-Day Extended VAT Refund in Poland

Tax authorities may extend the refund period to 180 days if the taxpayer has no taxable sales during the period, only deductible expenses.

For all refund periods (except the 15-day case), the processing time starts from the date of JPK_V7 submission.

Claiming a VAT Refund from Abroad

Businesses in Poland can also reclaim foreign VAT paid in other EU countries for eligible expenses, including:

• Fuel purchases
• Vehicle rentals
• Road tolls
• Travel expenses (public transport, taxis)
• Accommodation
• Food and restaurant services
• Trade fair and exhibition entry fees
• Business-related expenses (office supplies, repairs)

Eligibility for a Foreign VAT Refund

To qualify for a foreign VAT refund, the business must:

• Have no registered office, fixed establishment, or residence in the country from which they are claiming VAT.
• Be a VAT-registered taxpayer in Poland.
• Not engage exclusively in VAT-exempt sales.

Every expense must be documented with an invoice or import document. Refund claims must be submitted via the VAT-REF form by September 30th of the year following the tax year in question.

Final Thoughts

A VAT refund in Poland can provide crucial financial relief for businesses, but understanding the rules, eligibility, and processing times is essential. Whether reclaiming VAT domestically or from a foreign country, ensuring proper documentation and timely submissions will help streamline the process.

For businesses issuing invoices via KSeF, the 40-day refund period (set to become standard in 2026) presents an exciting opportunity for faster cash flow. Additionally, cashless taxpayers meeting specific criteria can benefit from an even faster 15-day refund.

By staying informed and utilizing the right VAT refund strategies in Poland, businesses can optimize their tax management and improve liquidity.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.