Timely submission of VAT, VAT-EU (ECSL) or Intrastat returns, as well as correct VAT adjustments, are essential to ensure compliance in Poland. Failure to meet these obligations may lead to serious financial consequences for businesses. This article outlines the conditions under which penalties are imposed, their amounts, and how to avoid sanctions while managing tax obligations effectively!
Penalties for failure to submit VAT returns
Penalties for failing to file VAT returns (JPK_V7M or JPK_V7K) on time arise from Article 56 §4 of the Fiscal Penal Code (KKS). Sanctions are imposed when a taxpayer fails to submit a return despite having disclosed the tax base, and the breach is considered socially harmful. The penalty also applies to failing to submit zero returns.
Penalty amounts
A fine for a tax offence ranges from 1/10 to 20 times the minimum wage (in 2025: from PLN 430 to PLN 86,000). In summary proceedings, the maximum fine is twice the minimum wage (PLN 8,600). If failure to submit a return results in a tax shortfall exceeding five times the minimum wage (PLN 21,500), the act may be classified as a fiscal offence, punishable by a fine of up to 720 daily rates (from PLN 143.33 up to PLN 1,720,000).
Penalties for late payment of VAT
According to Article 57 §1 KKS, penalties for late payment of VAT apply in cases of “persistent” non-payment of tax, meaning repeated or prolonged non-compliance. A one-time delay typically does not result in criminal sanctions but does generate VAT interest charges and may trigger further enforcement proceedings by the Tax Office.
Penalty and interest amounts
A fine for a tax offence ranges from PLN 430 to PLN 86,000, and up to PLN 8,600 in summary proceedings. VAT late-payment interest in 2025 amounts to 16.5% annually (double the NBP lombard rate + 2%). If the arrears do not exceed PLN 8.80, no interest is charged. Reduced interest (50%) applies if a correction is submitted within 6 months of the filing deadline and the tax is paid within 7 days of correction, provided the correction and payment are made voluntarily by the taxpayer.
Penalties for late VAT adjustments
Penalties for late VAT adjustments (Article 112b of the VAT Act) apply in cases of understated tax liabilities or overstated VAT refunds. Sanctions are imposed if the correction results from a tax audit or if significant errors are detected (e.g., deduction of VAT from ineligible services).
Penalty amounts
A sanction of 30% of the understated liability or overstated refund applies. In the case of corrections following a tax audit – 20%. If the taxpayer files a correction before an audit and pays the liability with interest, penalties can be avoided. An administrative fine of PLN 500 per error in JPK_V7 that prevents verification may be imposed if the taxpayer fails to correct the records within 14 days of the tax authority’s request.
Penalties for failure to submit VAT-UE (ECSL)
Penalties for failure to submit VAT-EU returns on time (Article 56 §4 KKS) apply to taxpayers registered for VAT-EU who do not report intra-Community supplies (WDT), intra-Community acquisitions (WNT) or cross-border services. Sanctions may be imposed even if no tax shortfall arises.
Penalty amounts
A fine for a tax offence ranges from PLN 430 to PLN 86,000, and up to PLN 8,600 in summary proceedings. In cases of intentional action resulting in significant shortfall (over PLN 21,500), the act may be considered a fiscal offence, punishable by a fine of up to 720 daily rates. Filing a voluntary disclosure before the initiation of explanatory proceedings by the tax authority may release the taxpayer from penalty.
Penalties for failure to submit Intrastat
Penalties for failure to submit Intrastat returns are set out in the Public Statistics Act and apply to businesses exceeding the Intrastat thresholds.
Penalty amounts
An administrative fine of up to PLN 5,000 per case for failure to submit Intrastat declarations. In cases of deliberate evasion, fiscal fines may be imposed under the KKS (ranging from PLN 430 to PLN 86,000). Sanctions are less frequently applied if the taxpayer files overdue declarations following a summons from the Central Statistical Office (GUS).
To reiterate, penalties for failure to submit VAT, VAT-EU or Intrastat returns, as well as for late VAT corrections, can significantly burden a company’s finances. Proactive tax compliance management and professional advisory support are key to avoiding sanctions.
