Polish interest on penalties for late VAT payments

Last 8 January 2016 Poland updated the applicable interest rates on late VAT payments and other tax debts.


These rates are grouped into three different categories:

  • 8% standard rate. This is the general rule on most late payments;
  • 4% reduced rate: Applicable where the business voluntarily filed a corrective VAT return and made the payment within 7 days following the submission of the correction;
  • 12% Increased rate: Applicable where the authorities find out about outstanding VAT payments while carrying a tax audit.

VAT penalties across the EU are split between penalties for late filing of VAT returns and penalties for late VAT payments. In practice, late filing penalties are sometimes not applicable or subject to a low amount. For example, the Netherlands does not normally apply these penalties and Spain has a fixed amount of €150. On the contrary, late VAT payments are subject to penalties and interest on late payments. These are usually a percentage of the unpaid amount plus the relevant interest.


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