Import of services from outside the EU is subject to VAT in Poland. By simultaneously declaring the purchase of services with VAT due and deducting the same amount of VAT as input, the import of services is neutral with respect to this tax.

Import of services occurs when:

• the service provider is an entity that does not have a registered office or a permanent place of business in Poland

and

• the recipient of the service is an entrepreneur with a registered office or a permanent place of business in Poland.

When importing, the rate of Polish tax payable is added to the purchase price of the service. However, if the entrepreneur is an active VAT payer and the import of the service is related to an activity subject to VAT, there is a right to deduct the input tax (refund) in the same amount. Thus, this transaction is VAT neutral.

However, a taxpayer, which is exempt from VAT, is liable to pay output tax cannot deduct VAT from this transaction. In this case, VAT is an expense in the income tax.

The condition for deducting VAT on import is the reflection of the tax amount payable in the tax return. The most convenient way is to reflect the tax payable (as output) and input tax in one return. The import of services is reported in the returns:

• JPK_V7M (K) – active VAT payer,
• VAT-8 – taxpayer exempt from VAT, but registered as an EU VAT payer,
• VAT-9M – taxpayer exempt from VAT, but not registered as an EU VAT payer.

Thus, the import of services from outside the EU, similar to the purchase of services from EU countries, is subject to VAT in Poland. More information on VAT issues when importing services is available on the state portal.