Some foreign entities are obliged to register for VAT only for the aim of a particular project. After the project is finalized, a foreign taxpayer has two options:

  • deregister from VAT – if it is known that no other taxable activities will be performed in Poland,
  • stay registered and submit nil VAT reports for the months no transactions are performed*.

There is no possibility to “suspend” VAT registration in Poland. After a taxpayer deregisters from VAT and in a few months concludes that VAT registration is still necessary, he has to file registration documents again.

*Polish VAT regulations provide that tax office may automatically deregister a taxpayer from VAT if nil reports are submitted for 6 months in a row. However, VAT registration can be reactivated if there are business reasons for temporary lack of business activity.