VAT RULES FOR OCCASIONAL TRANSPORT SERVICES PERFORMED
ON THE TERRITORY OF THE REPUBLIC OF POLAND
- FREQUENTLY ASKED QUESTIONS –
I. General
1. When is the new legislation relative to the taxation of products and services to become
applicable? Will there be any concrete changes on 1.1.2011 for transport companies operating
in Poland?
Until 6 May 2010, taxation of occasional transport by buses and coaches registered outside the
territory of the country, as an exception, was pursuant to other regulations which the European
Commission questioned. In the verdict dated 6 May 2010 in case C-311/09, European
Commission vs the Republic of Poland, the Court of Justice of the European Union decided that
the foregoing principle was inconsistent with the applicable EU regulations and ordered
harmonisation of the VAT taxation principles. This means that occasional bus and coach
services operated by carriers not established in Poland are subject to general Polish law on
taxation of goods and services. In accordance with the legislation, taxpayers are obliged to
register in Poland for VAT purposes with the Second Revenue Office of Warsaw - Śródmieście
and to submit tax returns in which they pay a 7% rate of VAT for the distance travelled within the
Polish territory.
As of 1 January 2011, the rate of VAT increases from 7 to 8%; thus, occasional services shall be
subject to a higher rate of taxation.
2. Should operators who did not manage to register before 1.1.2011 - for reasons outside
their control - expect fines/sanctions for operating in Poland in 2011?
Entities intending to render services of occasional transport of people by buses or coaches on
the territory of Poland shall register as active VAT payers and pay tax due thereto.
Entities which have not registered but performed transport operations shall immediately fulfil the
obligation and provide an appropriate explanation for the delay (the so-called active remorse)
and submit tax returns (VAT-7 or VAT-7K).
As of 1 January 2011, in the case of rendering of services of international road transport
involving occasional bus and coach services operated by carriers not established in Poland, the
vehicle driver shall, during the transport, hold a confirmation or a copy of registration of the
taxpayer as an active VAT payer issued by the Head of the Revenue Office (Article 96 (a) on the
Act on tax on goods and services).
Confirmation of registration shall be presented by the vehicle driver upon the demand of an
authorised inspection body. In the event of a failure to present such a document during
inspection, the inspectors shall immediately notify the Head of the Second Revenue Office for
Warsaw -Śródmieście, indicating the entity conducting transport, the dates of transport, the
number of the persons being transported and the information pertaining to the transport route
(Article 90 of the Act of 6 September 2001 on road transport (Dz. U. [Dziennik Ustaw, Journal of
Laws] of 2007, No. 125, item 874, as amended).
3. What do bus/coach drivers have to carry on board as proof of their registration?
During transport, the driver shall hold a confirmation (VAT-5) or a copy of the confirmation of
the taxpayer’s registration as an active VAT payer issued by the Head of the Revenue Office
(Article 96 (a) of the Act on tax on goods and services). Application for the issuance of a copy of
the confirmation shall be submitted by the taxpayer.
Confirmation of registration shall be presented by the vehicle driver upon the demand of an
authorised inspection body.
4. Is the reverse charge procedure valid in Poland for passenger transport?
The ‘reverse charge‘ procedure shall apply in the event of provision of services in favour of
entities being Polish VAT payers. In this case, VAT on the service shall be settled by the
service buyer unless the tax is to be settled by the service provider. This means that in the event
of rendering a service in favour of taxpayers registered in Poland for VAT-related purposes, the
service provider may register and settle the tax but there is no such obligation.
If the service provider solely settles the tax pursuant to the ‘reverse charge‘ principle, they ought
not to register in Poland for VAT-related purposes. In this case, they shall apply for a tax refund
applying the ‘VAT refund‘ procedure in accordance with the provisions of Council Directive
2008/9/EU.
II. Registration
1. Is the registration mandatory only for occasional services or also for regular services?
Until 6 May 2010, the services of occasional passenger transport rendered by enterprises not
established in Poland were exempt and subject to other VAT payment principles. All the other
services (inclusive of regular transport of people) rendered on Polish territory by foreign
enterprises were subject to obligatory registration with the Second Revenue Office as active
VAT taxpayers.
Registration is not obligatory in the case discussed in Point I. 4.
2. Is it necessary to register all vehicles or just the company?
For VAT-related purposes, only the company must be registered.
3. Are there exemptions to the mandatory registration?
Activity involving occasional transport of people by buses registered outside the territory of the
country is subject to taxation of the goods and services if it is conducted as part of the economic
activity provided for in the aforementioned Article 15 (2) of the Act on tax on goods and services.
Free transport of people by buses belonging to foreign associations, cultural groups, sports
clubs or schools, is not subject to taxation on goods and services if they are associated with the
business conducted. The aforementioned entities, solely conducting free transport of people in
relation to the business conducted, are not obliged to register as VAT payers and to settle the
tax in Poland.
Important
In such a situation, during the transport the vehicle driver shall hold documents indicating that
there is no obligation to register (e.g. coach registration document indicating the vehicle owner /
school, sports club, cultural group / coach rental contract concluded by the school, sports club,
cultural group, etc.).
Provision of services of international road transport involving occasional transport of people by
buses registered on the territory of third party states are not obliged to register as VAT payers
and to settle the tax in Poland.
4. Is the mandatory registration subject to a yearly minimum in terms of kms, Litres, etc.?
Is there a special exemption for companies operating less frequently on Polish territory?
No other regulations, except for the ones mentioned in the preceding answer, apply to the
procedure of registration in Poland as VAT payers of carriers providing occasional transport by
buses and coaches.
III. Procedure and fees
1. When and how does the registration fee of PLN 170 have to be paid?
Confirmation of the registration fee shall be submitted along with a complete set of documents
required for registration purposes.
The fee shall be paid to the following bank account:
Urząd Dzielnicy Praga Północ
M.ST.Warszawy
Ul. Kłopotowskiego 15
Bank Handlowy w Warszawie S.A
96103015080000000550026074
SWIFT: CITIPLPX IBAN: 96103015080000000550026074
2. In which case is it mandatory to pay an additional fee of PLN 17?
A fee of PLN 17 (stamp charge) shall be paid in the event of the annexation to the documents of
letters authorising company registration with and representation before the revenue office. Only
a natural person, not a company, may be a legal representative. Nevertheless, there is no
obligation to appoint a representative.
The fee shall be paid by each authorised person to the following bank account:
Urząd Dzielnicy Praga Północ
M.ST.Warszawy
Ul. Kłopotowskiego 15
Bank Handlowy w Warszawie S.A
96103015080000000550026074,
SWIFT: CITIPLPX
IBAN: 96103015080000000550026074
3. How can an operator fulfil its VAT-related obligations in Poland in case of short notice
trips to Poland?
Entities which have not registered but have performed transport operations shall immediately
fulfil the obligation and provide an appropriate explanation of the delay (the so-called active
remorse) and submit tax returns (VAT-7 or VAT-7K).
IV. Bank account
1. In which case is the opening of a bank account in Poland necessary? Is this necessary
only for VAT reimbursement purposes?
Opening a bank account in Poland is only required when the company intends to apply for a
VAT refund. In this case, the agreement with the bank, confirming the opening of the account,
shall be annexed to the company registration documents.
If the company does not open a bank account in Poland, it shall only file a statement on the
intention not to apply for a VAT refund. The statement does not have any special form but shall
be signed by a person authorised thereto.
2. Do bank accounts have to be opened in the name of the transport company or is it
acceptable if it is done by a tax representative?
The bank account shall be opened in the name of the taxpayer’s transport company.
3. In case no bank account is opened in Poland, the tax office asks for a written
confirmation of credit waiver by the company. Is it still possible to balance between current tax
credit and future tax debit if a confirmation of credit waiver has been undersigned?
If a return for a specific period features a surplus of the tax charged over the tax due, the
taxpayer is not obligated to apply for the surplus refund. The surplus may be appropriated to
settlements of later periods. In this case, the tax due for the next period shall be decreased by
the surplus. Applicable settlements shall be made by the taxpayer in an applicable tax return.
The revenue office does not do this automatically.
V. Sworn translation and company documents
1. Is it necessary to translate the complete statutes of the company in Polish (50 pages)?
If not, which parts should be translated?
It is not required to provide certified translation of all the pages of the Company Statutes (Articles
of Partnership) but only of those mentioning representation of the company, the company details
(name, address) and the description of the activity to be conducted on the territory of Poland.
A detailed description of the company’s activity in Poland in the usual written form is also
required.
2. Which documents must be submitted in sworn translation in Polish?
All the company’s statutory documents, excerpts from commercial registers, from the registers of
business activities, registration for VAT-related purposes in the country of the seat of the
transport company executed in a foreign language shall be translated by a sworn translator. For
VAT registration purposes documents in the foreign language version shall also be submitted.
In the event of absence of copies of documents authenticated by a civil law notary, original
documents shall be made available for inspection. Originals are returned upon request of the
taxpayer.
3. Can only registered notaries certify the copies, or can any lawyer?
Documents may be certified as true copy by a civil law notary or a representative of the
company being at the same time a legal adviser, an attorney or a fiscal adviser in Poland.
4. Must companies send original documents or are copies acceptable? In case original
documents have to be sent, will the tax office send the original documents back?
Only copies of documents authenticated in accordance with the explanations provided for in
Point V.3 or standard copies of documents annexed with original documents made available for
inspection are accepted. Originals are sent back to the company upon prior request by the
taxpayer.
VI. Reporting
1. Must companies report monthly or quarterly to the tax office even if the company has
not operated on Polish territory during that period?
Taxpayers are obliged to submit tax returns in which they settle the tax on goods and services
due to the provision of services of occasional transport of people by buses registered outside the
territory of the country based on the 8% rate, allowing for the distances travelled. Tax on goods
and services resulting from the tax return shall be paid by the entities to the Second Revenue
Office for Warsaw – Śródmieście, for each monthly period – by the 25th day of the month
following the month the tax became due; for each quarterly period – by the 25th day of
the month following the quarter the tax became due, respectively, i.e. by the final date of tax
return submission.
In principle, the basis of taxation is the turnover comprising the amount due to sales minus the
amount of tax due. In the case of services of international road transport involving occasional
transport of people by buses, when calculating the basis of taxation, one shall allow for the
distances travelled, i.e. taxable is the part of the amount due that covers the transport conducted
on the territory of Poland.
Even if the company does not conduct transport for a specific time, it shall submit tax returns
(monthly or quarterly) to the Revenue Office.
Transport completed by 31.12.2010 is subject to taxation based on the 7% rate.
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