The VAT-7 form was the basic settlement document for VAT taxpayers in Poland, used to declare taxable transactions for given settlement periods. Registered active VAT taxpayers had to file this return for monthly or quarterly periods, depending on the settlement method chosen. The document was mandatory up to the settlement for September 2020 or Q3 2020, after which it was replaced by the JPK structure (Jednolity Plik Kontrolny, Standard Audit File for Tax) – today taxpayers file JPK_V7M (monthly settlement) or JPK_V7K (quarterly settlement), which contains both the return and the VAT records (Regulation of the Minister of Finance, Investment and Development of 15 October 2019, Journal of Laws (Dz.U.) 2019, item 1988).
The VAT-7 form was the final form of VAT settlement up to September 2020 for monthly settlements and up to Q3 2020 for quarterly settlements. From October 2020 all VAT settlements moved to the JPK system, which meant a fundamental change in the way transactions are reported to tax offices
Completing the VAT-7 return required a precise approach and knowledge of all items of the form. Taxpayers had to account for many types of transactions, from standard domestic sales to complex intra-Community operations and imports. Each item of the form had its specific use and required the transaction to be classified correctly under the VAT Act.
Choosing the right VAT-7 form
The right type of VAT return depended on the settlement method declared in the VAT-R registration application. This decision determined not only how often returns were filed but also which form was used. Taxpayers settling monthly used the VAT-7 form, while those choosing quarterly settlements filed VAT-7K.
The VAT-7 form was intended for taxpayers settling monthly, while VAT-7K was for quarterly settlements. Not all taxpayers were entitled to choose quarterly settlements, because this option was restricted by rules on turnover and the nature of the business
Restrictions on quarterly VAT settlements were introduced gradually, which meant that more and more taxpayers had to switch to monthly settlements. These changes were intended to improve tax control and make budget revenue more frequent. Taxpayers who exceeded certain turnover thresholds or carried out certain types of activity automatically lost the right to quarterly settlements.
Changing the settlement method required filing the appropriate notification with the tax office (urząd skarbowy). Taxpayers had to remember the deadlines and procedures for such a change, because an incorrect settlement could lead to financial penalties. The settlement system was closely monitored by the tax administration.
Deadlines for filing VAT-7 returns
Filing VAT returns on time was a key element of operating properly within the tax system. The VAT return had to be filed by the 25th day following each settlement period. This single deadline applied both to filing the return and to paying the tax due under it.
Taxpayers choosing monthly VAT settlement had to file the return and pay the tax by the 25th of each month for the previous month. This meant regular monthly obligations related to settling the tax, which required systematic records of all transactions and ongoing control of documentation.
Taxpayers settling VAT quarterly filed returns according to the following schedule: Q1 by 25 April, Q2 by 25 July, Q3 by 25 October, Q4 by 25 January of the following year. This system allowed less frequent but more comprehensive settlements
Quarterly settlements gave taxpayers more time to prepare documentation and analyse transactions, but at the same time required more discipline in collecting and organising documents over a longer period. Taxpayers had to remember to classify correctly all business operations carried out in the quarter.
From 2018, VAT-7 returns had to be filed electronically. This change was intended to modernise the tax system and simplify administrative processes for both taxpayers and tax offices. Electronic filing speeded up the processing of returns and reduced the risk of errors caused by manual copying of data.
Basic information in the VAT-7 return
Completing the VAT-7 return started with the basic identification and period data. In field 1 in the top left-hand corner of the return, you entered the NIP (tax identification number) of the business filing the form. This number was the key identifier in the tax system and had to be entered precisely, because an error in this field could cause problems with assigning the return correctly.
In fields 4 and 5, taxpayers entered the period covered by the return, specifying the month and year. This information was key to correct settlement and had to match the actual period for which the return was filed. Stating the period incorrectly could lead to complications in tax settlements.
- Check that the NIP in field 1 is correct
- Enter the correct month and year in fields 4 and 5
- Specify the purpose of filing the form in field 7
- Complete the identification data in part B
- Check which tax office has territorial jurisdiction
Part A of the form concerned the place and purpose of filing the VAT-7 return. The return had to be sent to the competent tax office. From 1 January 2016 this was the office competent for the place of residence (natural persons) or the registered office address (other entities) – Article 17 § 1 of the Tax Ordinance Act (Ordynacja podatkowa). Before that, jurisdiction depended on where the taxable activities were performed
In field 7, taxpayers specified the purpose of filing the form, choosing between filing a return and correcting a return. A correction was chosen when filing a second or subsequent return for the same settlement period, which could result from detecting errors in the original return or from the need to include additional transactions.
Part B contained the taxpayer's identification data, which differed depending on the legal form of the business. Natural persons, including owners of a JDG (sole proprietorship), entered their surname and first name. Other entities, such as civil-law partnerships, entered their full name. In the last version of the form, VAT-7(20), the taxpayer was identified only by the NIP – without a date of birth or REGON (statistical number).
Settlement of output VAT – part C
Part C of the VAT-7 form was the most important section of the return, in which the taxpayer reported all taxable transactions for which the tax point fell in the declared period. This section required particular care and precision, because errors in this part could lead to an incorrect tax settlement and potential penalties.
The first items in this part concerned transactions reported only as the taxable amount, without reporting output VAT. Item 10 covered supplies of goods and services exempt from VAT under Article 43 or Article 82 of the Act. Although these transactions were exempt from tax, they had to be reported in the return for statistical and control purposes.
Item 11 concerned supplies of goods and services outside Poland by a business operating in Poland. For these transactions the taxpayer was entitled to reduce output VAT under Article 86(8)(1) of the Act or to a refund of input VAT under Article 87(5) of the Act
Item 12 repeated the value of the services referred to in Article 100(1)(4) of the Act that were already included in item 11. This item was supplementary and allowed certain types of services to be classified correctly. Item 13 covered the value of goods sold and services supplied in Poland to which the 0% rate was applied.
A special item was item 14, which repeated the value from item 13 but related only to sales at the 0% rate in connection with VAT refunds to travellers under the TAX FREE system. This mechanism allowed tourists from outside the European Union to recover the VAT paid on purchases in Poland.
| Item | VAT rate | Taxable amount | Output VAT | Notes |
|---|---|---|---|---|
| 15-16 | 5% | Net value | 5% VAT amount | Reduced rate |
| 17-18 | 8% | Net value | 8% VAT amount | Reduced rate |
| 19-20 | 23% | Net value | 23% VAT amount | Standard rate |
| 21 | 0% | Intra-Community supply | Not applicable | Intra-Community supply of goods |
| 22 | 0% | Export | Not applicable | Sales outside the EU |
Items 15, 17 and 19 distinguished the net value of goods sold and services supplied according to the individual VAT rates: 5%, 8% and 23%. In the corresponding items 16, 18 and 20, you entered the output VAT on those sales. These items also included corrections of sales that affected the settlement of output VAT.
Item 21 concerned intra-Community supplies of goods to customers from the European Union. Active VAT taxpayers supplying goods to a customer registered for intra-Community transactions could apply the preferential 0% rate after meeting additional conditions, including proper documentation of the export of the goods
Item 22 covered exports of goods to non-EU countries. Businesses selling to customers from third countries could apply the 0% rate if the transaction met the definition of export of goods under the VAT Act.
The following items concerned specific transactions requiring special treatment. Items 23 and 24 were completed by taxpayers who made intra-Community acquisitions of goods in the settlement period. Although the transaction concerned the purchase of goods, the buyer had to report output VAT while being able to deduct it at the same time, which made the transaction VAT-neutral.
Special types of transactions in VAT-7
The VAT-7 form also covered more complex transactions requiring special treatment in the tax settlement. Items 25 and 26 concerned taxpayers importing goods from third countries under the simplified procedure set out in Article 33a of the VAT Act. In this case importers had to calculate VAT on the import themselves, report it in the return and pay it.
Transactions related to the intra-Community acquisition of means of transport required particular attention. If the intra-Community acquisition concerned means of transport, the output VAT reported in item 24 also had to be entered in item 38. This tax had to be paid into the tax office account within 14 days from the tax point under Article 103(3) in conjunction with Article 103(4) of the Act.
Items 27 and 28 concerned the import of services, i.e. the purchase of services from foreign contractors, except for imports of services covered by Article 28b of the Act. Under the general rules on the import of services, the buyer had to report output VAT while having the right to deduct it, which made the transaction VAT-neutral
Items 29 and 30 covered only imports of services under Article 28b of the VAT Act, relating to transactions with taxpayers from other EU countries. These rules introduced special settlement rules for certain types of services supplied by businesses from other Member States.
The reverse charge mechanism was reflected in further items of the form. Item 31 concerned transactions for which the buyer was the taxpayer under Article 17(1)(7) or (8) of the VAT Act. Importantly, item 31 was completed by the supplier, while items 34 and 35, showing the tax amount, were completed by the buyer as the person liable to account for VAT.
- Import of goods under the simplified procedure required particular attention in the settlement
- Intra-Community acquisition of means of transport involved additional payment obligations
- The reverse charge mechanism split obligations between the supplier and the buyer
- Import of services from EU countries was subject to different rules depending on the type of service
- VAT-neutral transactions required both output and input VAT to be reported
Items 32 and 33 were completed by the buyer for supplies of goods and services for which the buyer was the taxpayer under Article 17(1)(5) of the Act. This mechanism concerned certain types of transactions where the legislator shifted the tax liability from the supplier to the buyer.
Item 36 was used to report output VAT on goods and services covered by the stock-take on the date the business was wound up. This rule concerned the closing of a business, when the taxpayer had to settle the stock and fixed assets held
A special rule concerned cash registers (kasa fiskalna), which was reflected in item 37. Here you reported the amount to be repaid of the deducted or refunded amounts spent on purchasing cash registers in the cases set out in Article 111(6) of the VAT Act. This applied where the register stopped being used within 3 years or the mandatory technical inspection was not carried out.
Input VAT – part D of the form
Part D of the VAT-7 form focused on settling input VAT on purchases, which reduced the liability shown in part C. This section was just as important as the part on output VAT, because correctly reporting input VAT directly affected the final tax liability or refund.
Section D.1 concerned carry-overs from previous periods. Item 42 was used to report the excess from the previous return, i.e. the overpaid tax to be carried forward to the next settlement period. Taxpayers copied here the amount from item 62 of the return filed for the previous settlement period.
Section D.2 covered purchases of goods and services, where only the value of goods and services and the input VAT were reported, to the extent that the taxpayer was entitled to deduct input VAT from output VAT or to a refund of input VAT. Items 43 and 44 concerned the value of fixed assets purchased in the settlement period and the input VAT on those purchases.
Items 45 and 46 covered all other goods and services purchased and the deductible tax on those purchases. VAT could be deducted only to the extent that the goods and services purchased were used for taxable activities. Taxpayers providing only VAT-exempt services had no right to report input VAT
Section D.3 on deductible input VAT contained items 47 to 50, which reported only the value of input VAT corrections. These items could contain negative amounts, which meant a reduction of the right to deduct compared with the amounts previously reported. Item 51 summarised the deductible input VAT according to the formula: item 51 = 42+44+46+47+48+49+50.
Practical example: In January 2020 a trading company bought fixed assets for PLN 50,000 net with VAT of PLN 11,500 and goods for resale for PLN 30,000 net with VAT of PLN 6,900. It reported PLN 50,000 in item 43, PLN 11,500 in item 44, PLN 30,000 in item 45 and PLN 6,900 in item 46. The total deductible input VAT was PLN 18,400.
Calculation of the tax liability – part E
Part E of the VAT-7 form summarised the entire settlement, calculating the final tax liability or the amount of the tax refund. This section required particular precision, because calculation errors could lead to an incorrect settlement with the tax office.
Items 52 and 55 concerned deductions related to the purchase of a cash register. The amount in item 52 could not exceed the difference between items 41 and 51. If the difference between items 41 and 51 was less than or equal to 0, you had to enter 0. This mechanism prevented a deduction larger than the actual tax liability from being reported.
Item 53 was used to report the amount of tax covered by a waiver of collection. This instrument was used in special cases provided for in the tax rules. Item 54 contained the calculated amount of tax payable to the tax office. If the difference between items 41 and 51 was greater than 0, item 54 was: 41 - 51 - 52 - 53. Otherwise you had to enter 0.
Item 55 concerned the refund due to the taxpayer for the purchase of a cash register, i.e. the cash register purchase relief. Item 56 showed the excess of input VAT over output VAT, which could be the subject of a refund claim or be carried forward to subsequent settlement periods
Taxpayers who had an excess of input VAT shown in item 56 in a given settlement period were entitled to claim a refund of this excess. There was no obligation to claim a refund of the whole excess – the taxpayer could claim a refund of part of the amount and carry the rest forward to subsequent periods in item 62.
This mechanism gave taxpayers flexibility in managing cash flows related to VAT settlements. It was particularly important for businesses with large investments or seasonal activity, where excesses of input VAT could be significant.
Additional information and attachments
Part F of the form contained additional information on special types of activities or transactions. Taxpayers ticked the relevant boxes depending on the nature of their business operations. Box 63 was ticked by taxpayers providing tourism services for which they purchased goods and services from other taxpayers for the direct benefit of the tourist under Article 119 of the Act.
Box 64 concerned taxpayers supplying second-hand goods, works of art, collectors' items or antiques previously purchased or imported for resale. For these transactions a special procedure taxing the margin under Article 120(4) or (5) of the Act could be applied.
Box 65 was ticked by taxpayers carrying out activities related to the supply or intra-Community acquisition of investment gold exempt from tax under Article 122(1) of the Act. This also applied to agents acting in the name and on behalf of other persons who acted as intermediaries in the supply of such gold under Article 122(2) of the Act
Box 66 was ticked by taxpayers who were the second taxpayer in a triangular transaction using the simplified procedure set out in Article 136 of the Act. This procedure concerned complex international transactions requiring special treatment in VAT settlements.
Further fields concerned modern payment and settlement mechanisms. Box 67 was ticked by taxpayers who used the reduction of the VAT liability where the tax liability was paid in full from the VAT account before the tax payment deadline. Box 68 concerned claims for a refund of tax to the VAT account shown in item 58.
Box 69 was ticked by taxpayers who issued invoices with the mandatory annotation "split payment mechanism" (mechanizm podzielonej płatności). This mechanism was introduced to increase the security of business transactions and limit VAT fraud.
Part G contained information on attachments to the VAT-7 return. Taxpayers using bad debt relief and correcting VAT on sales had to attach the VAT-ZD form to the VAT return. To do this, they ticked YES in item 70, informing the tax office that additional documentation was attached.
Contact details and signing the return
Part H of the form concerned the contact details of the taxpayer or the person representing them when filing the VAT-7 return. When the return was signed electronically, the first name and surname were completed according to the data of the person signing the return with their electronic signature. This procedure ensured proper identification of the person responsible for filing the return.
Although the e-mail address and telephone number were not mandatory fields, providing them made it much easier for the tax office to contact the taxpayer when doubts needed to be clarified or additional information obtained about the return filed. Efficient communication between the taxpayer and the tax authority could help resolve any problems faster.
Signing the return electronically required a qualified electronic signature or other forms of authentication accepted by the e-Deklaracje system. Taxpayers had to equip themselves with the technical tools needed to file returns electronically
The electronic filing system introduced additional technical and organisational requirements. Taxpayers had to adapt their accounting and settlement processes to the new options, but at the same time gained speed and convenience in filing documents. Electronic filing also reduced the risk of documents being lost in traditional postal correspondence. We prepare JPK_V7 files and VAT settlements for clients as part of our accounting services.
Switch to the JPK system from October 2020
A fundamental change in VAT settlements came with the introduction of the obligation to file the JPK file instead of traditional VAT-7 returns. The VAT-7 return was used up to the settlement for September 2020 for monthly settlements and for Q3 2020 for quarterly settlements.
From the settlement for October 2020 for monthly settlements and Q4 2020 for quarterly settlements, this return was replaced by the JPK structure. This change meant switching to a completely new reporting system, which required taxpayers to adapt their accounting processes and IT systems.
The JPK file introduced a much more detailed way of reporting VAT transactions. Instead of aggregated amounts in individual items of the return, taxpayers had to provide detailed information on each transaction, including contractor data, document numbers and detailed classifications of business operations
The switch to the JPK system required businesses to invest significantly in modernising their accounting systems and organisational processes. Many companies had to update their accounting software or implement new technological solutions to generate files in the required XML format.
The new system was intended to increase the transparency of business transactions and make tax control easier by giving the tax administration detailed data on all transactions of VAT taxpayers. At the same time, it introduced additional obligations and technical requirements for businesses. Today the return and the records are filed together as JPK_V7M (monthly settlement) or JPK_V7K (quarterly settlement) – JPK_V7 (VAT return with records, SAF-T file) – and from the settlement for February 2026 the file also contains the KSeF (National e-Invoicing System) numbers of invoices and the markings OFF, BFK and DI for documents without such a number. Businesses keeping full accounting books also have a separate structure – we describe it in our article on JPK_KR for accounting books.
