Eligibility for refund
Foreign taxable persons are entitled to recover Polish VAT if the following conditions are satisfied:
- The claimant does not have its seat, permanent or usual place of conducting business activities in Poland;
- It has not carried out any taxable supplies in Poland, except for:
- Certain import-related transport services and their value was included in the taxable basis;
- Certain services related to international transport;
- Supplies for which the reverse charge mechanism applies;
- The claimant is a registered VAT payer or registered taxpayer of a similar tax in the country in which it has its registered seat.
- Polish VAT law also requires that the claimant uses the goods and services purchased in Poland in relation to its taxable activities, which give the right to deduct input VAT in the country in which the VAT is being settled.
Lodging and restaurant services, with some exceptions;
Costs borne by the supplier on behalf of the purchaser that subsequently were refunded by the purchaser and only temporarily presented in the supplier’s accounting.
Full input VAT recovery is allowed on cars (purchase, lease, fuel and related expenditure), irrespective of their type (i.e. passenger cars/trucks) if the car is used only for business purposes. Specific conditions must be fulfilled for a company car to be considered to be used for business purposes; otherwise, input VAT deductibility is limited to 50% with no value cap on all expenditure (100% or 50% for fuel depending on how the car is used).
This use must be properly confirmed, which results from the provisions of the VAT Act. The taxpayer in this situation must:
-report the use of a passenger car at the tax office on VAT-26 print,
-lead a mileage for VAT purposes(business purpose use of car),
-introduce rules of car use in the company
If the application relates to a period of less than one calendar year but not less than three months, the amount for which application is made may not be less than EUR 400, if the application relates to a period of a calendar year or the period shorter than the last three months of a calendar year, the amount may not be less than EUR 50. These amounts will be recalculated at an average Euro exchange rate set by the National Bank of Poland on the day before the invoice was issued. In general, the taxable threshold for the submission of an electronic invoice must be at least EUR 1000 (EUR 250 for fuel costs). The Polish tax authorities can request additional documents or information.
The general threshold for the submission of an electronic copy of an invoice is where the taxable basis on the invoice or import document is at least EUR 1,000 (EUR 250 for fuel costs). The Polish tax authorities can request additional documents.
The application generally must cover a period of not less than three consecutive calendar months (e.g. from 1 January to 31 March) in one calendar year and not more than one calendar year. The application also may be submitted for a period shorter than the remaining three months of the calendar year (e.g. from 1 November to 31 December).
Polish VAT law does not specifically prohibit the submission of VAT refund claims for overlapping periods (e.g. January to June and May to December), assuming no double deduction is requested.
You should take care of this until 30 September of the year following the tax year to which the application relates.
The deadline for filing the tax return is not later than 30 September of the year following the tax year to which the tax return applies.
You can find more information on the Polish tax office's website https://www.biznes.gov.pl/en/firma/taxes-and-insurance-in-poland/vat/proc_666-zwrot-zagranicznego-vatu.