FBA sellers in Europe are constantly growing their businesses and the next expansion is often only a few steps aways. Unfortunately, with entering new markets, the need of addition VAT registration is becoming relevant as well.
Maximilian Gampl
Last Updated on 22 October 2021
VAT Threshold Limit 2021: Poland
As you might know, there are several reasons which require a proper VAT registration. That can be storing in the country, setting up a business or simply reaching the annual threshold limit via distance selling.
You can sell from one country to others within Europe. Up until July 2021, as soon as you reached the annual VAT threshold limit of the country you were selling to, a VAT registration in this country was required.
This regulation was changed in July 2021. Country-specific VAT thresholds were abolished and instead an EU-wide threshold for distance selling of 10,000€ has been introduced. Below this threshold, deliveries and services are taxed at the local VAT rate and VAT is paid in the home country. As soon as distance sales exceed the EU-wide threshold, VAT is due in each country in which the goods are sold. In this case, you also need to register for VAT in these countries.
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What does that mean?
Exporting goods as an online seller to certain countries won’t automatically lead to the necessity of a VAT registration as long as the annual VAT registration threshold isn’t reached. The turnover you make with selling goods from country A to country B used to bedecisive. As soon as the annual limit for sales to this country was reached, you needed to get a VAT number in the country of import and also file returns, submit VAT reports, etc.
Let’s assume your are a seller who is based in Germany and who wants to sell to Poland. The German VAT number is all you need as long the Polish VAT threshold limit of about 37,000€ wasn’t reached or annual sales to Poland did not exceed 37,000€ respectively. As soon as you reached this value, you needed to register for VAT in Poland as well.
With the EU-wide VAT threshold of 10,000€ a sales volume of 37,000€ is already above the threshold. The first 10,000€ are taxed with the german VAT rate and VAT needs to be paid in Germany. However, the 10,001st and each additional € must be taxed with the polish VAT rate and VAT is due in Poland. Then the registration for VAT and filing of VAT returns in Poland is necessary.
VAT Registration in Poland
VAT Returns in Poland
Further registrations was required for each additional country in which you reach the specific annual threshold limit.
It’s important to remember, that the new VAT threshold of 10,000€ applies across the EU. As soon as this threshold is reached across the board, for example through sales to Poland, France and Spain, VAT registration is due in all of these countries at the same time. It is no longer necessary to reach individual thresholds.
Check out the Polish Threshold Limits (PLN, EUR, USD)
| In Zloty | Euro | US-Dollar | |
| previous VAT threshold Limit Poland | 160 000PLN | ~37 000€ | ~$41 000 |
| new EU-wide VAT threshold | ~ 45 500PLN | 10 000 € | ~ $11 900 |
For some sellers, it is also worth using the one-stop shop, the OSS process. In this case, the EU-wide VAT threshold does not apply at all, but the VAT registration, filings of returns, and payment of VAT in serveral countries are significantly simplified. Hellotax can also help with OSS registration.
