Frequently asked questions

The amount of VAT depends on the net value of the sale. VAT can be calculated using the formula: VAT = net price * VAT rate for a given sale/transaction.

A form that is used to settle VAT. It applies to entrepreneurs who settle on a monthly basis. Quarterly settlements should be included in the VAT-7K return.

The VAT-R form is a registration declaration for VAT purposes. When filling it in, it is necessary to provide company identification data, information on the type of business and indicate whether the company will be a buyer or seller of goods and services. It is important to specify the exact start and end date of the VATable activity. The form also includes space for additional information, such as the company’s bank account and method of correspondence with the tax office.

Value-added tax (VAT) – an indirect tax, the value of which is added to the net value of purchase and sale transactions. The entrepreneur, when settling the tax, pays the amount depending on the net value of the sale (output VAT). The entrepreneur is also entitled to deduct VAT, provided that the expense to which the tax is related is connected with taxable activity (input VAT).

Not every business owner selling online has to be registered for VAT. Entrepreneurs may be exempted from registering for VAT based on sales threshold or sales character. An annual income not exceeding a certain rate does not call for VAT registration either. However, it is important to remember, that exceeding any of those thresholds automatically call for VAT registration. Thresholds differ from country to country, hence it is essential to become familiar with local regulations in order to avoid penalties. When sales character is concerned, every country has their goods and services catalog, which details items that can be sold tax free regardless sales threshold.

Statutory declarations which are subject to tax are all transactions that took place and have to be reported for VAT tax payment or refund. It is important to remember, that if you are a business owner registered for VAT, you are obliged to file periodic VAT declarations. Every EU country has their own deadlines and frequency of filing VAT declarations; usually monthly or quarterly. Take advantage of our expert knowledge and entrust us with filing your VAT declarations, EC Sales Lists (ECSL) – in case you are involved in movement of goods within EU (B2B transactions), Intrastat reports, and Standard Audit File for Tax.

The deadline for submitting the VAT return and paying the tax to the Tax Office depends on the frequency of submission.

• Monthly settlement – by the 25th day of the following month, for example, for September – by 25 October
• Quarterly settlement – by the 25th day of the month following each quarter, for example for the 1st quarter – by 25 April

It is worth remembering that in the event that the day of filing the VAT return falls on a Saturday, Sunday or holiday, the deadline for filing the VAT return is postponed to the nearest working day.

To check whether a company is a VAT payer, you can use the VAT taxpayer database provided by the Ministry of Finance or the tax offices. Simply enter a company’s VAT number in the search engine to obtain information on its VAT status. This is a quick and efficient way to confirm the tax status of a contractor.

In Poland, it was introduced by the Value Added Tax and Excise Duty Act of 8 January 1993.

In Poland, the standard VAT rate is 23%. However, there are reduced VAT rates: 8% and 5%, which apply to certain goods and services, such as foodstuffs, books or hotel services. In addition, some products and services may be exempt from VAT.
(Status as of July 2024)

You can check your EU VAT number using the VIES (VAT Information Exchange System) run by the European Commission. All you have to do is go to the VIES website and enter your company’s VAT number. This system allows you to verify the VAT numbers of companies throughout the European Union, which is particularly useful for international trade.

List of VAT taxable persons -> List of entities registered as VAT taxable persons, unregistered as well as deleted and reinstated in the VAT register. It allows you to verify your contractors. The white list allows you to:

• check whether a counterparty is an active VAT taxpayer
• confirm the contractor’s bank account number (if it is correct)

VAT OSS (One Stop Shop) is a simplified VAT settlement system for services provided remotely (e.g. electronic, telecommunications) within the European Union. This system allows businesses to account for the VAT due for such services in one Member State, regardless of which EU countries they are supplied in. This is particularly beneficial for companies operating internationally as it simplifies tax and administrative procedures.

An active VAT taxpayer is a company or sole trader that is registered for VAT. This means that this company accounts for VAT, issues VAT invoices and is entitled to deduct input VAT on its purchases.

Dual materiality analysis is a key process that allows companies to fully understand their impact on the environment and the impact of external factors on the business.

It includes two main aspects:

• Company’s impact on the environment and society
• The impact of environmental, social and economic factors on the enterprise.

This tool is extremely helpful in identifying key areas of sustainability that should be included in both corporate strategy and Environmental, Social, and Governance (ESG) reports. Dual materiality analysis not only identifies key areas of risk and opportunity.

This allows the company to better respond to changing market needs and regulations, but also minimizes its negative impact on the environment through a more responsible and sustainable business model.

Data Gap Analysis is a tool that allows companies to identify gaps between their current performance and stakeholder expectations, market or regulatory requirements. It involves comparing a company’s operations with industry best practices and standards, as well as with regulatory requirements – for example, in terms of CO2 or social responsibility.

Conducting such an analysis gives companies the opportunity to identify areas where they are out of compliance or can make improvements. This allows companies to plan corrective actions that will help them comply with current standards and regulations, as well as meet stakeholder expectations.

Data Gap Analysis helps companies prepare for increasing regulatory requirements for sustainability while enhancing their competitiveness and reputation. Our company offers comprehensive support in the implementation of Data Gap Analysis, allowing companies to develop effective ESG strategies that comply with modern standards and contribute to long-term success.

An ESG Report Audit is a process that enables companies to assess their operations against environmental, social and corporate governance criteria. Through this audit, companies can better understand which aspects of their operations have the greatest impact on these three key areas. During an ESG audit, independent experts check, for example, whether a company takes care to minimize its environmental impact, how it treats its employees and whether it is fair to customers and investors. The audit can include a review of documents, interviews with employees and analysis of company reports and strategies. This allows companies to, for example, better manage risks or gain the trust of stakeholders An audit also helps investors and consumers make informed decisions about doing business with a company.

In 2024, large listed and unlisted companies that meet at least two of three criteria: employment of more than 250 employees, revenues of more than €40 million or assets of more than €20 million are subject to an external audit obligation for ESG reports in Poland. The obligation also applies to financial institutions such as banks and insurance companies. In addition, the audit will cover companies considered to be entities of public importance, such as energy companies. The requirements stem from the EU’s Corporate Sustainability Reporting Directive (CSRD), which makes ESG reporting and auditing mandatory.

ESG is a concept that addresses three key areas of companies’ operations: environment (E), society (S) and corporate governance (G). Companies that integrate ESG into their strategies aim to minimize negative environmental impacts, support responsible social practices and ensure transparent governance. The environmental area focuses on conservation and sustainability issues. The social area deals with labor rights, equality, and relations with local communities. Corporate governance, on the other hand, is a system of policies, procedures and structures that govern a company’s management, ensuring transparency and accountability in decision-making. Effective corporate governance ensures that the interests of various stakeholder groups, including shareholders, employees and customers, are adequately represented and protected.

Greenwashing is a practice in which companies attempt to create a false image of sustainability by promoting products or services as environmentally friendly, while their actual environmental impact is minimal or negative. It’s a type of marketing that can mislead consumers who want to support environmentally friendly initiatives. As environmental awareness grows, more companies are choosing to emphasize their sustainability efforts, but the reality does not always match the declarations. Greenwashing can lead to a loss of customer trust and undermine a company’s reputation. Corporate responsibility requires transparency and a real commitment to sustainability, not just apparent activity. To avoid greenwashing, companies should base their communications on concrete actions, confirmed by real numbers in independent audits and reports.

A Sustainable Enterprise is not only a company that cares about the environment, but also about people and transparency of operations. One of the key elements is inclusiveness, which means equality of opportunity and access for all, regardless of background, gender, sexual orientation, age or economic status. Companies that create an inclusive environment build a space where every employee feels accepted and has the opportunity to realize his or her full potential. This approach not only improves the work atmosphere, but also increases the organization’s innovation and efficiency, contributing to its long-term success.

Another feature of a Sustainable Enterprise is diversity, both in terms of demographics and the skills, views and experiences of employees. Promoting diversity allows companies to be more flexible and creative in the face of market challenges. Diverse teams have greater potential to generate innovative solutions, which translates into better financial performance and increased competitiveness in the market.

The third pillar is transparency, which in the context of ESG reporting means clear, reliable and easily accessible information about a company’s activities. Transparency allows stakeholders – whether investors, customers or regulators – to assess how a company is affecting the environment and what actions it is taking to minimize the negative impacts of its activities. Transparent reporting strengthens trust and builds a company’s reputation for responsibility and sustainability.

ESG Risk Assessment is the process of identifying and analyzing risks related to environmental, social and corporate governance aspects. The purpose of this analysis is to understand what risks may arise from a company’s operations and how these factors may affect financial performance, reputation and stakeholder relations.

Conducting an ESG Risk Assessment helps companies prepare for the challenges posed by dynamic market, regulatory and climate changes. Through such analysis, companies can better manage risks, minimize potential losses and build long-term, stable relationships with business partners. ESG risk assessment includes not only internal analysis, but also monitoring of the entire supply chain and the activities of business partners, allowing companies to comprehensively manage potential risks.

ESG regulation refers to laws that require companies to comply with environmental, social responsibility and governance standards. As global awareness of sustainability increases, more and more countries are introducing regulations requiring companies to report on ESG Activities and manage the risks associated with them. These regulations are aimed at making companies more accountable for their impact on the environment, and compliance is key to avoiding sanctions and improving a company’s image.

In Europe, one of the key documents is the Corporate Sustainability Reporting Directive (CSRD), which from 2024 requires companies to report ESG data in detail, including an external audit. Other regulations include rules on the protection of human rights, due diligence on sustainable supply chains and decarbonization, in line with European climate goals.

ESG report and non-financial report are not the same, although they often overlap. In the context of the obligations imposed by the CSRD (Corporate Sustainability Reporting Directive), the ESG report has become more detailed and formal. Under the directive, large companies must report on their environmental, social responsibility and corporate governance activities. The ESG report, in this view, includes specific indicators, targets and strategies that a company uses to meet sustainability requirements.

A non-financial report, on the other hand, is a broader concept that can cover a variety of information about a company’s operations, including its environmental, social or ethical impact, but not necessarily in as much detail as required by the CSRD. Companies that opt for voluntary non-financial reporting can include various aspects of their operations in their documents, and are not limited to ESG indicators.

ESG Strategy is a roadmap for companies to integrate environmental, social and corporate governance aspects into their management processes. It is a comprehensive approach that minimizes risks, maximizes stakeholder value and manages resources responsibly. A key element of ESG Strategy is the integration of these three factors into a company’s daily operations. Companies that implement an ESG Strategy gain a competitive advantage, better access to capital and greater social acceptance. This type of strategy helps companies avoid regulatory and climate change risks, and fosters long-term relationships with stakeholders.

A Climate Strategy, on the other hand, focuses exclusively on measures to reduce the negative impact of a company’s operations on the climate and adapt to climate change. More and more companies are recognizing the need to develop a Climate Strategy in the face of global warming and increasing climate regulation.

This type of strategy includes, among other things:

• Greenhouse gas emission reduction measures,
• Investments in low-carbon technologies,
• improving energy efficiency,
• sustainable resource management,
• Optimization of the production process,
• Circular economy (CE) principles and waste reduction.

We are a competent service provider with many years of experience on the market under our belt. Our team comprised of 70 specialists is a guarantee of an utmost quality of services. Upon/after an extensive analysis we tailor our business offer to unique needs of our client.

The most essential initial phase of working with a new client is an analysis of their situation with ways to improve the accounting process in mind. It may come in a form of process automation of matching invoices with orders or opting for automatic payments instead of manual ones. There are number of ways to improve accounts payable field, which is why we encourage contacting us directly.

Outsourced accounts payable increase effectiveness and generate substantial savings. The experience we gained through working with vast number of clients broadens our perspective on different processes and enables us to pick the best solutions to a given problem. Aside from that, we can swiftly increase or decrease workflow when need be, which translates into more flexible development of accounting processes.