VAT compliance in Poland is a service dedicated for rapidly expanding businesses. The ones that are planning to expand into Polish market.
It is a range of services aimed at supporting entrepreneurs in implementing legal regulations and settling taxes on goods and services. This solution allows entrepreneurs to save money, as well as get professional and efficient support.
It also ensures their security by minimizing tax risks. How does VAT compliance in Poland look like? What does it entail? What can entrepreneurs expect?
What are the benefits of outsourcing VAT settlements? Find answers to these questions in this article.
What is VAT compliance Poland?
It is a comprehensive service offered by specialized advisory firms to entrepreneurs who want to make intra-community transactions. It involves the implementation of VAT tax regulations in the company. This is a solution that allows entrepreneurs to adapt them to their own needs.
By choosing this form of cooperation, entrepreneur incurs only the costs generated by the external service provider (advisor). They depend on the number of documents delivered.
The actual time spent on their preparation is also relevant. VAT compliance in Poland is a solution popular among taxpayers registered abroad only for VAT purposes.
VAT compliance services in Poland – what do they entail?
The support of experts specialized in VAT compliance in Poland, allows entrepreneurs to fulfil their obligations without errors and unnecessary delays. Entrusting tax matters to people with relevant knowledge and experience provides a sense of security.
VAT compliance in Poland is mainly for entrepreneurs looking for new development opportunities. Especially in foreign markets.
VAT compliance in Poland includes:
- professional support during the registration process for VAT/VAT-UE purposes,
- keeping VAT registers,
- preparation and submission of tax returns and summary information to the tax office,
- sales data analysis,
- support in obtaining VAT returns,
- support during verification procedures, audits, and tax proceedings
What can an entrepreneur expect from VAT compliance in Poland?
As indicated above, VAT compliance in Poland is a comprehensive service. It provides support to entrepreneurs at every stage of their business activity.
In addition to the assistance provided by experts in VAT registration, reporting, and return, clients can also receive help in representing themselves before tax authorities. Thus, you don’t have to deal with filing declarations or inquiries about tax interpretations on your own.
In the case of foreign sales, you must respect laws that apply in the country where the sale took place. Thanks to the support of experts, entrepreneurs do not have to analyze these tax laws on their own.
Support in VAT compliance is particularly important for entrepreneurs who:
- Intend to open warehouses in foreign countries
- Sell goods through the Internet to individuals and other entities in other countries
- Send goods directly to private individuals
- Send machines to different countries (with installation services)
- Sell entry tickets to conferences
- Provide real estate services
What are the benefits of outsourcing VAT settlements?
Both the economic reality and tax law are becoming increasingly complex. Specific areas of running a business require professional support.
The matter becomes even more complicated when a given company carries out activities subject to VAT in another country. Internal accounting may not be able to correctly register and report VAT abroad, due to differences in tax law and language barriers. There may also be problems with ongoing contact with foreign tax authorities.
The main advantages of outsourcing such service include:
- Saving money by not having to adapt financial and accounting software. It also minimizes the costs of training employees in foreign tax law
- Professionalism guaranteed by knowledge of experienced tax law experts specialized in the law of a given country
- Efficiency due to the possibility of focusing on the main business operations and improvement of the VAT reporting process
- Security ensured by the support of qualified tax advisors and safe data transmission
Summary
Incorrect VAT reporting can be a serious problem. Especially for entrepreneurs conducting international transactions. They can result in additional costs and legal consequences.
Not only for the business but also for employees responsible for tax matters. VAT compliance in Poland is an increasingly popular way to reduce tax risk and find help with VAT settlements.
If you are interested in the tax and accounting in Poland related topics, we invite you to contact our accounting office in Warsaw. Our accountants in Poland are at your disposal. Contact us today and let us help you also with VAT registration in Poland.
VAT compliance in Poland FAQs
What is VAT compliance?
VAT Compliance refers to ensuring adherence to tax regulations related to Value-Added Tax (VAT). It involves proper documentation, registration, reporting, and payment of VAT as per the law in a specific country.
Why is VAT compliance important?
Proper VAT compliance ensures accurate tax reporting, minimizes legal risks, and avoids penalties or fines due to errors in tax filings.
What services are included in VAT compliance offered by RSM Poland?
Services include VAT registration, maintaining VAT registers, filing tax declarations, assisting with VAT refunds, and supporting clients during tax audits or inspections.
How does VAT compliance benefit businesses?
It reduces administrative burden, ensures accuracy in VAT filings, and provides specialized support, enabling businesses to focus on their core activities.
What types of transactions does VAT compliance cover?
It covers domestic and international transactions, including exempt transactions, transactions with varying VAT rates, and cross-border dealings like imports and intra-community supplies.
How can VAT compliance help in reducing costs for businesses?
By outsourcing VAT compliance, businesses eliminate the need for in-house VAT experts and reduce costs associated with staff training and system updates.
Is VAT compliance in Poland beneficial for foreign businesses operating in Poland?
Yes, it is especially advantageous for foreign entities unfamiliar with Polish tax laws and language, helping them navigate VAT regulations effectively.
What is the role of RSM Poland in VAT compliance in Poland?
RSM Poland verifies document accuracy, prepares VAT registers, submits declarations, and liaises with tax authorities, ensuring end-to-end support.
How does outsourcing VAT compliance improve efficiency?
It minimizes employee involvement, leverages expert knowledge, and ensures compliance with the latest regulations, allowing for more streamlined operations.
Can VAT compliance help avoid VAT fraud like carousel fraud?
Yes, through meticulous documentation, verification processes, and expert advisory, VAT Compliance minimizes risks of involvement in fraudulent schemes.
What is carousel fraud, and why is it a concern in Poland?
Carousel fraud is a tax evasion scheme involving fictitious supply chains to claim VAT refunds fraudulently. It is a significant issue in Poland due to the high VAT rate.
What steps does RSM Poland take to prevent VAT fraud risks?
RSM Poland ensures thorough checks of all documentation, provides advisory to avoid risky transactions, and assists in identifying potential fraud exposure.
What happens if there are errors in VAT reporting?
Errors can result in penalties, interest on unpaid taxes, or increased scrutiny by tax authorities. VAT Compliance services help avoid such risks.
What challenges do businesses face with VAT regulations in Poland?
Challenges include the complexity of VAT laws, frequent regulatory changes, and extensive reporting requirements.
How does VAT compliance in Poland handle international VAT obligations?
It ensures adherence to foreign VAT regulations, handles registrations and filings abroad, and provides communication support with foreign tax authorities.
How does VAT compliance simplify reporting for businesses?
It automates and manages VAT documentation, ensuring timely and accurate submission of all necessary reports.
What is the cost structure for VAT compliance services by RSM Poland?
Costs are based on the volume of documents and the time experts spend on VAT reporting and communication with tax authorities.
How does VAT compliance support digitalization efforts like e-invoicing?
RSM Poland provides advisory and implementation support for systems like KSeF, ensuring compliance with Poland’s e-invoicing regulations.
Can VAT compliance in Poland help in case of a tax audit?
Yes, it provides documentation, manages communication with tax authorities, and offers expert support during audits or inspections.
What are the advantages of RSM Poland’s VAT compliance in Poland services for accounting teams?
It allows accounting teams to focus on financial reporting and internal bookkeeping while experts manage complex VAT requirements.
