VAT Net / Gross Calculator
Convert net to gross and gross to net amounts with all VAT rates.
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VAT rates in Poland 2026
23% — standard rate
Applies to most goods and services. This is the default VAT rate in Poland, used when there is no basis for a reduced rate. Covers electronics, clothing, consulting services, telecommunications, among others.
8% — reduced rate
Applied to residential construction (up to 300 m²), gastronomy, passenger transport, hotel services and medical devices. Also applies to some beverages and hygiene products.
5% — reduced rate
Covers basic food products (meat, dairy, bread, vegetables, fruits), printed books and e-books, specialist periodicals and baby products (diapers, baby food).
0% — zero rate
Applied to export of goods outside the EU, intra-Community supply of goods (ICS) and some international services. The taxpayer retains the right to deduct input VAT.
How to calculate VAT?
Net → Gross
To calculate the gross amount, multiply the net amount by (1 + VAT rate). Example: 1,000 zł net × 1.23 = 1,230 zł gross. VAT amount is the difference: 230 zł.
Gross → Net
To calculate the net amount from gross, divide the gross amount by (1 + VAT rate). Example: 1,230 zł gross ÷ 1.23 = 1,000 zł net. VAT amount: 230 zł.
VAT in Poland — a practical guide
Value Added Tax (VAT, known as "podatek od towarow i uslug" or PTU in Polish) is the most significant consumption tax in Poland, contributing the largest share of government revenue. Whether you are a business owner issuing invoices or a consumer trying to understand pricing, a solid grasp of VAT mechanics is essential. Below we cover the key concepts for 2026.
How VAT Works in Poland
VAT is a multi-stage tax collected at each point in the supply chain. When a business sells goods or services, it charges VAT (output VAT) on the sale price. When that same business purchases goods or services for its operations, it pays VAT (input VAT) to its suppliers. The business remits only the difference between output and input VAT to the tax office. This mechanism ensures VAT is ultimately borne by the final consumer, while businesses act as collection agents. In Poland, VAT is administered through the JPK_V7M monthly declaration, which combines the VAT return and the SAF-T (Standard Audit File for Tax) reporting format.
Input VAT vs Output VAT
Output VAT (VAT nalezny) is the tax you charge your customers on sales. Input VAT (VAT naliczony) is the tax you pay to your suppliers on purchases. Your VAT liability equals output VAT minus input VAT. If input VAT exceeds output VAT in a given period, you can carry the surplus forward to offset future liabilities or request a refund (typically within 60 days, or 25 days for accelerated refund). For example, if you sell services for 10,000 PLN + 2,300 PLN VAT and purchase supplies for 4,000 PLN + 920 PLN VAT, you remit 2,300 - 920 = 1,380 PLN to the tax office. Note that not all input VAT is deductible — for instance, VAT on entertainment expenses or passenger vehicles over 150,000 PLN has limited deductibility.
When Must You Register for VAT?
VAT registration becomes mandatory when your annual turnover exceeds 240,000 PLN (the 2026 threshold). Until that point, you can operate as a VAT-exempt entity under Article 113 of the VAT Act. However, certain activities require VAT registration regardless of turnover, including: legal services, consulting, debt collection, jewelry sales, and new means of transport sales. Voluntary VAT registration can be advantageous if your clients are VAT payers (they can deduct your VAT) or if you make significant VAT-eligible purchases (you can reclaim input VAT). Registration is done through the VAT-R form submitted to your local tax office, and you can register at any time.
VAT Rates in Poland (23%, 8%, 5%, 0%)
Poland applies four VAT rates. The standard rate of 23% covers most goods and services including electronics, clothing, professional services, and telecommunications. The 8% reduced rate applies to residential construction (up to 300 sq m), passenger transport, hotel accommodation, restaurant services, and certain medical devices. The 5% reduced rate covers basic food products (bread, meat, dairy, fruits, vegetables), printed and electronic books, and baby products. The 0% rate applies to exports outside the EU and intra-Community supply of goods, allowing full input VAT deduction. Additionally, some services are VAT-exempt (not zero-rated), such as financial services, insurance, education, and healthcare — these do not allow input VAT deduction.
How to Calculate Net from Gross
To extract the net amount from a gross (VAT-inclusive) price, divide by (1 + VAT rate as a decimal). For the standard 23% rate: net = gross / 1.23. For 8%: net = gross / 1.08. For 5%: net = gross / 1.05. The VAT amount is then gross minus net. For example, a gross invoice of 5,000 PLN at 23% VAT: net = 5,000 / 1.23 = 4,065.04 PLN, and VAT = 934.96 PLN. When going the other direction (net to gross), simply multiply: gross = net x 1.23. These calculations are critical for correct invoicing, as Polish law requires invoices to show net amount, VAT rate, VAT amount, and gross amount separately.
Frequently Asked Questions
How do I calculate VAT from a net amount?
Multiply the net amount by the VAT rate. For 23%: net x 1.23 = gross. Example: PLN 1,000 net x 1.23 = PLN 1,230 gross (PLN 230 VAT).
How do I extract the net amount from gross?
Divide the gross amount by (1 + VAT rate). For 23%: gross / 1.23 = net. Example: PLN 1,230 / 1.23 = PLN 1,000 net.
What VAT rates apply in Poland in 2026?
VAT rates in 2026: 23% (standard), 8% (construction, dining, transport), 5% (basic food, books), 0% (exports, intra-EU supply). VAT exemption applies for turnover up to PLN 240,000 per year.
When must I register for VAT?
VAT registration is mandatory after exceeding PLN 240,000 annual turnover (2026 threshold). Earlier voluntary registration is worthwhile if you purchase many goods/services with VAT to deduct.
What is split payment and when is it mandatory?
Split payment directs VAT to a separate bank account. It is mandatory for invoices over PLN 15,000 gross for goods/services listed in Annex 15 of the VAT Act.