VAT registration made by attorney
When starting a business or expanding operations in Poland, one of the key steps is registering for VAT. While many entrepreneurs handle this process themselves (then, it is almost free), Polish tax law also allows the submission of the VAT-R form by an attorney. It’s worth to know what are the legal and financial consequences of this approach – for both parties. For example, did you know that a representative signing your registration documents may be required to pay your tax liability, if you fail to pay?
Have a question or need support?
Who can submit the VAT-R on your behalf?
Under Polish tax law businesses have the option to appoint an attorney to submit the VAT-R form on their behalf. But there are certain conditions. The attorney must be a natural person with full legal capacity, meaning they have the right to represent you legally.
In practice, this often means businesses appoint trusted legal professionals, such as tax advisors or lawyers, to handle the VAT registration. This can make the process smoother, especially for those who are unfamiliar with the details of tax law or simply want to save time.
Business perspective?
In our view, a key advantage of engaging a representative are their ability to:
- stay in constant contact with the tax office;
- receive correspondence directly, and
- respond promptly to any inquiries or requests, while understanding the reasons behind the questions and their possible context.
When the tax office corresponds with entities / individuals based abroad, language barriers and the tight deadlines often imposed by Polish authorities (e.g., 3 or 7 days) may result in missed deadlines, leading to the rejection / delay of the registration application.
Delays in VAT registration process can have a significant negative impact on a business, especially when it is ready to start operations or sign contracts. Without proper VAT registration, the business may be unable to issue invoices (payment deadlines will not start), claim input VAT (negative cashflow), or fulfill contractual obligations (e.g. the agreements will be longer negotiated due to formal lack of register data), potentially leading to lost opportunities, strained relationships with partners.
What are the risks for the attorney?
While appointing an attorney to submit the VAT-R form can make life easier, it’s important to note that this responsibility comes with risks. According to Article 96, paragraph 4b of the VAT Act, the attorney who submits the VAT registration form becomes jointly and severally liable for any VAT arrears up to PLN 500,000 through 6 months from the registration’s date. This means that if the business fails to pay its VAT obligations, the attorney could be held responsible for the debt, as well.
The representative’s liability extends to any tax debts arising from business activities conducted within six months of the taxpayer’s VAT registration, placing significant responsibilities and risks on their shoulders.
However, an important exception applies: the representative is not liable for tax debts unless they are linked to proven fraudulent activities intended to gain financial benefit. In other words, liability does not cover debts resulting from honest mistakes or miscalculations, but such fraud must still be demonstrated by the authorities.
Why it is worth to consider the decision how to register?
Before choosing to submit the VAT-R form through an attorney, both the business owner and the attorney should fully understand the implications of this decision. While for the business it can be convenient to delegate this responsibility, the attorney in the process should have in mind that potential financial risk is significant (particularly if the business faces will act in the future without ongoing tax advisor’s support).
Make sure that both you and your attorney are clear on the responsibilities involved before proceeding. If you need a support – CRIDO offers comprehensive support on VAT registration aspects (including fiscal representation as well also other aspects of the new business structuring, e.g. opening a bank account; applying for tax reliefs).
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