VAT declaration – what do you need to know?

A VAT declaration is one of the basic documents that entrepreneurs registered as active taxpayers of Value Added Tax should be familiar with. Timely and correct submission of declarations allows you to avoid financial penalties and guarantees transparency in settlements with the tax authorities. In this article, we explain what VAT declarations are, who is required to submit them, when they are due, and what the consequences of neglecting this obligation may be.

What Is a VAT Declaration?

A VAT declaration is a document submitted to the tax office by an entrepreneur. Its purpose is to report the amount of VAT that needs to be paid or refunded. Since 1 October 2020, traditional VAT-7 and JPK_VAT declarations have been replaced in Poland by a single document. The new document is the Standard Audit File JPK_V7. It contains both a record section and a declarative part.

Record Section And Declarative Part of JPK_VAT File

• Record section – includes detailed data on the taxpayer’s sales and purchases during a settlement period.
• Declarative part – contains information necessary for tax settlement, including:
  • tax base and VAT due on sales,
  • values relating to intra-Community acquisitions of goods,
  • deductible input VAT,
  • VAT amounts transferred from previous periods,
  • the amount of VAT to be paid to the tax office or refunded.

Who Must File VAT Declarations?

VAT declarations are mandatory for all businesses registered as active VAT payers.

Who Does Not Need to File VAT Declarations?

VAT declarations are not filed by:

• entrepreneurs who have suspended their business activity,
• taxpayers benefiting from subjective or objective VAT exemption (e.g., medical, educational services),
• individuals not engaged in business activity.

Output VAT And Input VAT

In the context of VAT declarations, there are two key concepts:

• Output VAT – VAT charged on the sale of goods and services, which the entrepreneur must pay to the tax office.
• Input VAT – VAT paid on purchases of goods and services related to business activity, which the taxpayer may deduct from output VAT.

Purpose of Filing VAT Declarations

A VAT declaration serves to:

• correctly determine the tax liability,
• deduct input VAT from output VAT,
• enable the tax administration to monitor business transactions,
• ensure transparency in tax settlements.

Monthly And Quarterly VAT Declarations

By default, VAT declarations are filed monthly. However, quarterly settlement is also possible.

Who Can File Quarterly VAT Declarations?

The right to file quarterly VAT declarations is granted to so-called small taxpayers. This means entrepreneurs whose annual turnover does not exceed the equivalent of 2 million EUR (since 2023; previously 1.2 million EUR). Additional conditions include:

• being registered as an active VAT taxpayer for at least 12 months,
• no supplies of goods and services listed in Annexe 15 to the VAT Act in recent periods,
• no imports of goods under Article 33a of the VAT Act,
• providing customers with the option to pay using payment instruments.

Zero VAT Declaration

Taxpayers with an active VAT number must submit declarations even if they made no sales or purchases during a given period. In such cases, they submit a so-called zero VAT declaration.

Deadlines And Methods For Filing VAT Declarations

VAT declarations must be filed:

• by the 25th day of the month following the settlement period (month or quarter).

Methods of submission in Poland:

• via the e-mikrofirma portal,
• using accounting software,
• with a qualified signature, trusted profile, or authorisation data.

After submission, the taxpayer receives an official receipt confirmation (UPO).

Consequences of Failing to Submit VAT Declarations

Failure to submit VAT declarations on time results in sanctions, such as:

• financial penalties (from several hundred to tens of thousands of PLN),
• late payment interest,
• fiscal penal liability.

Failure to submit a declaration on time is a tax offence. The value of the fine is linked to the current minimum wage.

Table – Basic information on VAT declarations

VAT Declarations – Summary

VAT declarations are an important part of the tax system and an obligation for every active VAT taxpayer. You should submit them correctly and on time to avoid penalties. This ensures transparency in relations with the tax administration. It is advisable to use electronic tools, which simplify submission and reduce the risk of errors.

Contact us! Do you need help filling out your VAT declaration or want to ensure your settlements are correct? Contact our office.

FAQ – VAT Declarations