VAT Rates, Daily and Mileage Allowances and E-archiving in Poland

VAT rates in Poland

Poland imposes Value Added Tax (VAT) at different rates as follows for various goods and services.

1. Standard rate - 23%

The standard VAT rate is applicable to all taxable goods and services in Poland, except when a specific measure allows for a reduced rate.

2. Reduced rate - 8%

Mustard, sweet pepper (spice) and some processed spices (e.g. pepper, thyme); some unprocessed spices (e.g. cumin, saffron, turmeric); specialized magazines.

3. Reduced rate - 5%

Tropical and citrus fruit, some edible nuts, hygienic articles; books, brochures, leaflets and similar materials, printed, regional or local magazines; maps and hydrographic maps or similar maps of all kinds, including atlases, wall maps, topographic plans and globes, printed; other printed articles.

4. Zero rate - 0%

Intra-community and international passenger transport (excluding inland waterway and road transport); services supplied during international transport.

Source: VAT 

Daily allowances in Poland

Employees of companies traveling for business may be entitled to per diem allowances, as outlined below:

Domestic Daily Allowance

The allowance for domestic business travel is PLN 45 for 1 day of travel. This is the minimum rate, but you may set a higher one in your company.

One-day trip

Multiple-day trip

Meal Deductions

The employee must be reimburse for the fee for hotel accommodation, confirmed by a bill. However, the amount for an overnight stay cannot exceed 20 times the amount of the allowance (PLN 900).

• If no invoice/receipt is provided to reimburse accommodation expenses, a flat rate applies - 150% of per diem – PLN 67,5

• Transportation: A flat rate compensation for travel with local means of transport - 20% of per diem - PLN 9.

Foreign daily allowance

Meal deductions

Please note! You may determine other limits than those set out in the legislation. For example, you may set out different allowances for different countries, regions etc. in remuneration regulations, or adopt a fixed amount regardless of which country employees go to. Just remember that the minimum amount of the allowance for international travel cannot be lower than the allowance for domestic business travel. This means that the rate of the allowance for domestic business travel is the minimum rate. If you determine an allowance exceeding the limit indicated in the mentioned-above regulation and pay it to the employee, the surplus will constitute revenue on which the employee will pay tax.

Source: Expenses relating to business travel by entrepreneurs and employeeshttps://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20230002190 LEX 

Mileage allowances in Poland

Source: https://isap.sejm.gov.pl/isap.nsf/DocDetails.xsp?id=WDU20230000005 LEX 

Electronic archiving and retention period in Poland

It is legally permissible in Poland to digitize paper invoices and then destroy the originals, provided you follow all the proper procedures and ensure the digital copies meet the legal requirements (authenticity, integrity, legibility, retention period, etc.).

To safely destroy originals after digitizing, you must make sure:

1. Quality of the scan
   • The scan must be readable / legible (including all details).
   • The full content must be captured (no missing parts, no cropping, etc.).
2. Authenticity, integrity, legibility must be preserved for the digital copy during the entire storage period. This typically means:
   • System ensures data cannot be altered without detection (audit trail, versioning, checksums, etc.)
   • Access controls, backups, protection vs corruption or loss.
3. Proper archival system
   • The digital documents must be stored securely, in a way where they can be retrieved when needed (e.g. for audits).
   • The system should keep metadata: who did the scanning / when / what happened to the original, etc.
4. Clear procedure / policy
   • There should be a documented internal procedure (or policy) that describes how scanning is done, quality checks, how and when originals are destroyed.
   • The destruction should itself be documented.
5. Retention period
   • Keep digital copies for at least the legally required period (5 years under VAT law for invoices).
6. Audit‑ability
   • The digital copies must satisfy the standards that tax authorities look for (integrity, traceability).
   • Be prepared to show the digital version in case of tax audit.

Source: Article 106m § 1 and Article 112a Polish VAT Act