When taxpayer initiates a business account in Polish bank, it is automatically provided with a VAT account.

B2B customers receiving invoices from the taxpayer may decide to pay VAT part of the amounts due on dedicated VAT account. Sometimes, using that mechanism by the purchasers is mandatory (see our article: Split payment mechanism).

What to do with funds deposited on VAT account?

The funds accumulated on VAT account are solely designated for the specific purposes. Money deposited in a VAT account may only be used to pay VAT and some other public liabilities (PIT, CIT, excise duty and customs duty, social security contributions) or to pay VAT shown on purchase invoices to the supplier's VAT account.

It is however possible to apply for transferring funds from VAT account to the standard bank account within 60 days.

How to transfer the funds on bank account?

A taxpayer may decide to apply for releasing funds accumulated on VAT account. It is not complicated, and during the processing period a taxpayer still may use these funds.

Steps to unblock funds from VAT account are following:

  • fill and sign an application form (taxpayer’s representatives or a proxy),
  • submit an application to the tax office (incl. Power of Attorney, if necessary),
  • attach the summary of the VAT account – not necessary but may speed up the process,
  • answer tax office questions – if checking activities occur,
  • wait for a decision max. 60 days from the date of complete application submission (tax office may accept or deny the refund).

Is it possible to shorten the deadline for the release?

It is obvious that the taxpayers prefer to receive the funds from VAT account as soon as possible. To achieve that goal, it is recommended to provide the tax authorities with official request with justification (why the swift release will support the business etc.).

From our experience results that often tax authorities accepts such request (in case VAT reportings and provided answers are clear and errorless).