VAT taxation of distance selling to Poland

1. Value-added tax regarding selling of goods to Poland conducted by the entities situated and operating from another European Union country

Sale of goods from EU to Poland for businesses (so-called B2B), including the sale for natural persons who are sole traders

If you sell goods to a business entity and these goods are sent directly from an EU country to Poland, there is no obligation to charge VAT provided that the seller is registered as a VAT EU taxpayer, the buyer (a business entity) holds a valid VAT EU number, and the delivery is documented correctly (tax rules of the dispatch country should apply). Simultaneously, the buyer (a business entity) in Poland is obliged to recognize an intra-community acquisition of goods (VAT should be charged by the buyer under the reverse-charge mechanism, at the rate applicable in Poland).

To check if the given VAT number is valid, visit the European Commission's website and verify the number.

Generally, if the buyer (a business entity) does not have a valid VAT number, the seller should charge VAT on that particular sale at the rate applicable in a country of dispatch.

Sale of goods from EU to Polish consumers (so-called B2C)

In case of selling of goods dispatched from one EU country to Polish consumers (for their private purposes, not related to their business or professional activity), generally you should register for VAT purposes in Poland and charge VAT at the rate applicable in Poland. You can also register in your own country for the One Stop Shop (OSS) procedure, which enables you to declare and pay VAT from all EU B2C sales in only one country.

The exception is the situation when the total net value of your distance sales of goods and TBE services to EU consumers does not exceed in the current and previous year a threshold of 10,000 EUR. This sale may be subject to VAT applicable in the EU country where you have your registered office, from which you dispatch parcels, and settled in that country (no obligation to register in Czechia or in OSS scheme).

However, even when the total net value of sales did not reach the limit of 10,000 EUR, you may still voluntarily choose Poland as a place of supply and charge VAT in Poland. For this purpose, you should file a written notification to the respective tax office on this choice. This choice binds you for 2 consecutive years.

Remember that the above VAT rules do not apply to some particular goods ― for example, new vehicles (cars, boats, or aircraft).

Similar rules apply in other EU countries. However, in each country there are different limits set for distance sales.

2. Value-added tax and sale of goods to Poland, conducted by sellers from countries outside of the European Union

Sale of goods from non-EU country to Poland for businesses (B2B)

If you sell goods to a business entity and these goods are sent directly from a non-EU country to Poland, there is no obligation to charge VAT. The buyer (a business entity) in Poland is obliged to recognize an import of goods (VAT should be charged by the buyer under the reverse-charge mechanism, at the rate applicable in Poland).

Sale of goods to Polish consumers ( B2C)

If you do not have a seat or fixed establishment in the EU, VAT settlements may depend on several circumstances ― for example, whether you dispatch the goods from the EU or a non-EU country. In some cases VAT may be settled by electronic interface, which facilitates supplies for EU consumers.

If you dispatch goods to Polish consumers from another EU country, you should declare and pay VAT in Poland. This may trigger the obligation to register in Poland for VAT purposes. You may also register for the One Stop Shop scheme if you sell goods for consumers in several EU countries.

When the sale of goods dispatched from the EU country to Poland is being facilitated by an electronic platform (for example, a marketplace such as Allegro), the VAT will be declared and paid by this electronic platform.

If you sell goods to Poland from a country located outside the EU, the import VAT may be paid by the buyer. Allegro decided not to register for the Import One Stop Shop Scheme (so called IOSS). Thus, we will not settle the VAT on imported goods (irrespective of the value of the transaction).

If you are a seller from outside the EU, make sure that in your offers you provide correct information on the place of dispatch of the goods, especially if you send the goods from warehouses located in many countries.

You can find more information on settling VAT on mail orders on the Polish Ministry of Finance website (available in Polish).

Learn more.

Running a business in Poland or the European Union by entities from outside the EU vs. VAT registration

Sellers from outside the European Union should ensure that the way they perform the sales through Allegro does not trigger specific obligations in respect to a VAT registration in Poland (regardless of the VAT obligations under the distance sales of goods), irrespective of the consequences of the sole EU distant sales. Foreign sellers frequently use local resources to facilitate their sales on the local market.

If you are a non-EU based seller and make sales in Poland:

• through a branch located on the territory of Poland, or
• use any property located in Poland, either owned or rented for business purposes, like an office or a warehouse, or
• have any personnel in Poland, or
• use any technical or IT infrastructure located in Poland, or
• use an external entity to perform the above-listed activities

selling this way could indicate that you have a fixed establishment in Poland, resulting in the obligation to register as a VAT taxpayer in Poland. In that case, the sellers who are conducting sales in a manner described above should register as local VAT taxpayers, and charge and settle VAT on sales performed to the Polish buyers in accordance with local (Polish) rules.

Sellers with a fixed establishment in Poland (for VAT purposes) will be invoiced by Allegro for providing functionalities on the platform according to local rules assigned to domestic sales (together with charged VAT).