Possibility to create a VAT Group in Poland

What are the benefits of establishing the VAT Group in Poland?

The creation of the VAT Group means that the supplies of goods and the provision of services by entities belonging to this group do not constitute activities subject to VAT. As a consequence, this results in the lack of internal invoices within the group (it is enough to issue e.g. an accounting note). Moreover, the VAT Group is a particularly advantageous solution for entities that do not deduct input VAT at all or deduct partially input VAT. The advantage of establishing the VAT Group is also its favorable impact on the financial liquidity of its entities.

What are the conditions for establishing the VAT Group?

The VAT Group will be able to be created by taxpayers with financial, economic and organizational ties:

1. established in the territory of Poland or
2. not established in the territory of Poland to the extent that they conduct business activity in the territory of Poland via a branch located in the territory of Poland.

The conditions for the existence of financial, economic and organizational relations between the members of the VAT Group, which are described in detail in the Polish VAT Act, will have to be met continuously for the period in which this group has the status of a taxpayer.

How to create a VAT group?

For the VAT Group to be established, a written agreement on the creation of a VAT Group must be concluded, which will include, among other things, the following information:

• the name of the VAT Group;
• identification data of taxpayers forming the VAT Group;
• designation of a representative of the VAT Group, appointed from among its members;
• identification data of shareholders (stockholders) and the amount of their share in the share capital of taxpayers forming the VAT group, holding over 50% of shares (stocks) in the share capital of these taxpayers;
• an indication of the period for which the VAT Group was established, not shorter than 3 years.

What kind of support shall be needed?

• preparation an analysis of whether the creation of the VAT Group will be profitable in your business model;
• assistance in the preparation of the agreement for the establishment of the VAT Group and in the registration of the VAT Group;