Poland introduces VAT groups from January 2023

Poland introduces VAT groups

Poland introduces VAT groups in January 2023. It was initially planned that this simplification entered into force in July 2022, however, it was delayed to January 2023, as per the last update.

More official information from the website of Polish tax authorities is available here.

How Polish VAT groups will work?

The eligibility criteria for creating a VAT group in Poland is that businesses involved are established in Poland and closely bound by financial, economic and organizational links. These companies can create a VAT group and be treated as a single taxable person for VAT purposes in Poland.

For more information concerning the VAT group criteria please check the section VAT groups from our Polish manual here.

The following specifics will apply to Polish VAT groups:

• Permanent establishments and branches can also be part of a Polish VAT group.
• VAT grouping is optional in Poland. Companies can apply for a VAT group when meeting the requirements or they can choose to remain separate entities for VAT purposes.
• Once the application is approved, a group VAT number is granted to the group.
• Intra-group transactions are disregarded for VAT purposes. Still, they must keep records of these transactions.
• Every group member is jointly and severally liable for the VAT debts and penalties of the entire group.
• The minimum time period for a VAT group is three years.
• Members of a VAT group submit one single consolidated VAT return. It is not possible to file separate VAT returns for each entity.