Poland is a developing country that can be interesting for foreign investors. In order to legally conduct business in Poland, a foreign entrepreneur must first obtain a tax identification number in Poland, the so-called NIP. This is necessary for tax purposes, including registration of the company for VAT. Without it, it is not possible to issue invoices, settle tax or conduct business in compliance with Polish law. The tax number in Poland serves to identify the taxpayer when dealing with tax offices and other administrative authorities.
Obligation to register a company for VAT in Poland
The obligation to register for VAT arises when a foreign company sells goods or provides services in Poland, uses warehouses in the country, makes intra-Community purchases of goods or carries out activities that require the settlement of VAT. In such cases, it is necessary to obtain a tax number in Poland already before performing the first transaction. Importantly, foreign entities do not benefit from any exemption thresholds, as is the case with Polish micro-entrepreneurs.
How do I obtain a tax identification number in Poland?
Registration requires the completion of a NIP-2 (for companies) or NIP-7 (for individuals) form, as well as a VAT-R application. The application should be accompanied by a copy of the commercial register, the company’s statutory documents, a detailed description of the scope of activity and, in the case of entities from outside the European Union, an agreement with a tax representative. The documentation should be submitted to the relevant tax office – usually the Second Tax Office Warsaw-Śródmieście (Drugi Urząd Skarbowy Warszawa-Śródmieście), which serves foreign entrepreneurs not established in Poland.
How long does it take to obtain a NIP and VAT number?
It usually takes between 7 and 14 days to process the application, but according to the regulations, the office has a maximum of 30 days to do so. Once the application has been accepted, the entrepreneur receives a Polish tax identification number (NIP) and a VAT number, which consists of the prefix PL and ten digits. From that moment on, it is possible to legally conduct business, issue VAT invoices and deduct tax on purchases.
Obligations of the entrepreneur after obtaining a NIP number
Once the company is registered for VAT, the entrepreneur is obliged to submit regular tax returns (for example: JPK_V7M or JPK_V7K), keep records of sales and purchases and report data in a timely manner. All changes to the company’s data must be reported to the tax office immediately – within 7 days of occurrence at the latest.
Benefits of having a tax identification number in Poland
By having a NIP and active VAT registration, an entrepreneur can operate fully legally on the Polish market. Obtaining a tax number in Poland allows one to deduct VAT on costs, issue VAT invoices to customers, import goods and participate in public tenders. It is also an element of building trust with contractors and customers, especially in the B2B sector.
NIP and VAT – the basis for safe entering the Polish market
Obtaining a tax number in Poland is the first and key step to start legal activity on the Polish market. More detailed information on this subject can be found at: https://polishtax.com/how-to-register-for-vat-in-poland-a-guide-for-foreign-entrepreneurs/. Although the process requires precise preparation of documentation and knowledge of procedures, it allows foreign companies to develop their activities in Poland freely and safely. VAT registration gives the opportunity to exercise tax rights and builds a professional image of the entrepreneur in the eyes of customers and authorities.
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