VAT Refund In Poland – Everything You Need To Know

If a taxpayer in Poland reports an excess of input VAT over output VAT, they have the option to receive a VAT refund for the difference. There are two main choices: the surplus can be carried forward to offset future VAT liabilities (credited to the VAT account) or refunded directly to the taxpayer's bank account.

But how exactly does the VAT refund process work? And what about VAT refunds from foreign transactions? Let's dive in!

Input VAT vs. Output VAT – What's the Difference?

Tax law in Poland distinguishes between two types of VAT: input VAT and output VAT. Understanding the difference is crucial, as it determines whether a business must pay VAT or qualifies for a refund.