Active VAT taxpayers in Poland regularly file JPK_V7 (VAT return with records, SAF-T file) on a monthly or quarterly basis. It often happens that input VAT on purchases exceeds output VAT on sales, which creates an excess. Businesses can then claim a refund of this excess or use it to cover other tax liabilities. Offsetting a VAT refund against another tax, however, requires meeting specific formal conditions and using the right mechanisms provided for in the Tax Ordinance Act (Ordynacja podatkowa).
Legal basis for VAT refunds
VAT refunds are governed by the VAT Act and the Tax Ordinance Act. When a taxpayer reports an excess of input VAT over output VAT in the VAT settlement, they can claim a refund of it or have it offset against other tax liabilities.
The provisions of the Tax Ordinance Act on overpayments apply accordingly to a refund of the excess of input VAT over output VAT reported in the declaration part of the JPK_V7 file (Article 76b § 1 of the Tax Ordinance Act). The taxpayer can use this amount to cover tax arrears in other taxes, current liabilities or future tax liabilities
The VAT refund procedure starts with correctly completing the declaration part of the JPK_V7 file. In field P_54 the taxpayer must enter the amount of the excess of input VAT over output VAT that is to be refunded to the account indicated by the taxpayer or offset against future tax liabilities.
The choice of the VAT refund period depends on whether the taxpayer meets certain conditions. Several time options are available, from the accelerated periods of 15 or 25 days, through the standard period of 40 days (from 1 February 2026; previously 60 days), up to the extended period of 180 days in special cases.
You choose the VAT refund period by entering the digit 1 in the relevant JPK_V7 field. Each period has its own specific requirements and conditions that the taxpayer must meet to use it. Choosing the wrong period may delay the refund
Formal VAT refund procedure in JPK_V7
Correctly completing the JPK_V7 file is the basis of the entire VAT refund process. The taxpayer must state the amount of the excess precisely and choose the right refund period from the options offered by the system.
The available VAT refund periods are as follows:
- Refund within 15 days to the settlement account - field P_540
- Refund within 25 days to the VAT account - field P_55
- Refund within 25 days to the settlement account - field P_56
- Refund within 40 days to the settlement account - field P_560 (the standard period from 1 February 2026)
- Refund within 60 days to the settlement account - field P_57 (only in the JPK_V7(2) structure, for periods up to January 2026)
- Refund within 180 days to the settlement account - field P_58
Each VAT refund period requires the taxpayer to meet specific conditions. The shortest period of 15 days is available only to taxpayers who meet strict requirements on how they run their business and settle transactions. From 1 February 2026 the standard period is 40 days (previously 60 days)
Choosing the right refund period is crucial for the efficiency of the process. Taxpayers often opt for longer periods when they are not sure they meet the conditions for the accelerated ones, to avoid complications in the settlement process.
Conditions for a VAT refund within 15 days
The shortest VAT refund period of 15 days is available only to taxpayers who meet very restrictive conditions. These requirements are meant to ensure that the taxpayer is highly reliable and that the business is transparent.
The basic conditions for a VAT refund within 15 days are:
- In the last three months or the last quarter preceding the period with the reported VAT refund, at least 80% of payments for sales recorded on cash registers in each period must have been cashless payments (card, mobile or bank transfer)
- In the last three months or quarter preceding the period in which the VAT refund arises, at least 80% of total sales was recorded on online or virtual cash registers
- In the last 6 months, gross sales recorded on online or virtual cash registers amounted to at least PLN 40,000 in each settlement period
Additional requirements for a VAT refund within 15 days include being registered as an active VAT taxpayer for the 12 months preceding the refund period and filing a return for each of those periods, and the return showing the refund must be filed before the deadline. The bank account must have been on the VAT taxpayer white list for at least three months, and the VAT carried forward from previous returns may not exceed PLN 3,000
Another important restriction is that the refund amount may not exceed twice the VAT on sales recorded on online cash registers in the given period. These strict criteria mean that only a limited group of taxpayers whose business is fully transparent and documented can use the accelerated refund periods.
VAT refund within 25 days - two options
A VAT refund within 25 days is referred to as an accelerated refund and offers taxpayers two different options. The first option is a refund to the VAT account without having to meet additional conditions, while the second requires meeting specific requirements for a refund to the taxpayer's bank account.
For a refund to the taxpayer's bank account within 25 days, the input VAT reported in the declaration part of JPK_V7 must arise from specific categories of transactions:
- Invoices documenting amounts paid in full through the taxpayer's bank account or account in a cooperative savings and credit union (SKOK)
- Other invoices documenting amounts due, if the total of these amounts does not exceed PLN 15,000
- Customs documents, import declarations and customs decisions setting the tax at the correct amount, where the tax has been paid by the taxpayer. We enter import documents in the VAT records of businesses whose bookkeeping we handle.
A VAT refund within 25 days also requires meeting additional time conditions. The taxpayer must have been registered as an active VAT taxpayer for 12 consecutive months immediately preceding the settlement period. In addition, the input VAT not settled in previous periods may not exceed PLN 3,000
The procedure also requires filing with the tax office (urząd skarbowy) documents confirming the transfers in question. The 25-day period runs from the date of filing the JPK_V7 settlement containing the declaration part.
The correct field for the excess of input VAT over output VAT refunded within 25 days to the VAT account is field 55, while a refund to the taxpayer's bank account within 25 days is indicated in field 56.
New VAT refund period - 40 days
From 1 February 2026, 40 days is the standard VAT refund period (Article 87 section 2 of the VAT Act as worded by the Act of 16 June 2023). It replaced the previous 60-day period, and at the same time the separate 40-day refund for taxpayers issuing invoices in KSeF (National e-Invoicing System) was repealed (former Article 87 section 5b of the VAT Act).
The former conditions of the 40-day "KSeF" refund (such as issuing all sales invoices in KSeF) no longer apply. The current standard period does not require meeting any additional conditions and applies to settlement periods starting on or after 1 February 2026 (Article 12 of the Act of 16 June 2023).
The limits known from the former 40-day "KSeF" refund, such as PLN 3,000 of excess carried forward from the previous period, do not apply to the current standard period. In JPK_V7, in the structure in force for periods from February 2026, you choose this period in field P_560
A refund within 40 days is paid to the bank account or SKOK account indicated in the identification notification (Article 87 section 2 of the VAT Act). Any tax difference not refunded on time is treated as an overpayment that bears interest (Article 87 section 7 of the VAT Act).
| Refund period | Main requirements | JPK_V7 field | Notes |
|---|---|---|---|
| 15 days | 80% cashless payments, 80% of sales on online cash registers | P_540 | Strictest conditions |
| 25 days | Payments via bank account | P_55/P_56 | Two options |
| 40 days | Sales in the period (from 1 February 2026) | P_560 | Standard period |
| 60 days | Periods up to January 2026 | P_57 (JPK_V7(2)) | Former standard period |
| 180 days | No sales in the period | P_58 | Extended period |
Former standard VAT refund period - 60 days
Until 31 January 2026, the standard VAT refund period was 60 days from the date of filing the JPK_V7 file (Article 87 section 2 of the VAT Act as then worded). The provision now sets 40 days, and 60 days applies to settlement periods before February 2026 and to a refund under Article 87 section 5a (instead of 180 days) at the written request of a taxpayer who has provided a financial security.
The basic condition for a VAT refund within the standard period (formerly 60, now 40 days) is that sales took place in the settlement period. These do not have to be only taxable domestic sales - they can also include VAT-exempt sales and supplies of goods and services outside Poland. Payments received in advance also affect when the tax point arises – we describe the differences in our post on advance payments and deposits in VAT and PIT.
The reduction of the standard VAT refund period from 60 to 40 days was introduced by the Act of 16 June 2023 amending the VAT Act (Dz.U. 2023 poz. 1598). The change was originally to apply from 1 July 2024, but it was postponed together with mandatory KSeF and entered into force on 1 February 2026. It applies to settlement periods starting on or after that date
A VAT refund within the standard period does not require meeting additional conditions on how the business is run, the type of cash registers used or the structure of payments. The taxpayer only has to report sales subject to VAT in the settlement, which makes this period the most universal solution.
Extended VAT refund period - 180 days
The extended VAT refund period of 180 days from the date of filing the JPK_V7 file with the tax office applies in special cases. It covers situations where the taxpayer reported input VAT in the settlement period, but no sales subject to VAT took place.
A VAT refund within 180 days applies when the taxpayer has not reported any output VAT, which means there were no sales at all in the settlement period. This can happen to businesses that are just starting out, going through temporary breaks in activity or running seasonal businesses.
When claiming a VAT refund within 180 days, the taxpayer must enter the relevant amount in field 58 of the JPK_V7 file. This extended period results from the need for the tax authorities to verify more thoroughly whether the refund is justified when there are no sales
Where the validity of a refund needs additional verification, the head of the tax office may extend the refund period until the verification activities, tax audit or proceedings are completed (Article 87 section 2, second sentence, of the VAT Act) — this does not mean that the 180-day period applies automatically. Taxpayers should be ready to provide additional explanations and documents justifying their right to the refund.
Offsetting a VAT refund against another tax
A taxpayer who reports an excess of VAT in the JPK_V7 file can decide to use it to cover other tax liabilities instead of having it refunded to the bank account. This option is particularly useful for businesses with arrears or current liabilities in other taxes.
A VAT overpayment can be offset against:
- Tax arrears in other taxes
- Current tax liabilities
- Future tax liabilities
For the tax office to transfer the overpayment to settle another tax, enter the digit 1 in field 59 of JPK_V7 when requesting that the tax refund be offset against future tax liabilities in accordance with Article 76 § 1 and Article 76b § 1 of the Tax Ordinance Act
The procedure also requires entering in field 60 the amount of the tax refund to be offset against future tax liabilities, and in field 61 the type of future tax liability against which the refund is offset.
The process of offsetting a VAT overpayment against another tax is governed by the Tax Ordinance Act and does not require filing any additional applications or documents. It is enough to mark this correctly in the JPK_V7 file and indicate the type of tax to which the overpayment is to be transferred.
When the overpayment is offset and refund verification
The application of the rules on offsetting a VAT overpayment against other taxes is not always clear-cut. The date of offsetting and the refund periods follow from the Tax Ordinance Act and the VAT Act.
The right to a VAT refund reported in the return must be distinguished from actually having that amount at your disposal. A refund is offset against tax arrears on the date the return showing the tax refund, or its correction, is filed (Article 76b § 1 of the Tax Ordinance Act).
Where the validity of the refund needs further checking, the head of the tax office may extend the refund period until the verification activities, tax audit or proceedings are completed (Article 87 section 2 of the VAT Act). This means that the actual settlement of offsetting a VAT overpayment against another tax does not always coincide with the refund periods set out in the law
This matters for taxpayers who plan to use a VAT overpayment to cover other tax liabilities. They should expect to wait until the verification of the refund is completed before the offset against other taxes is actually settled.
Taxpayers should allow in their financial plans for possible delays in offsetting the overpayment, especially where the tax authorities carry out additional checks on whether the refund is justified.
Practical aspects of managing a VAT overpayment
Managing a VAT overpayment effectively requires a strategic approach to financial planning. The decision between a refund to the bank account and offsetting against other taxes should take into account the company's current financial situation and expected tax liabilities.
Businesses should regularly analyse the structure of their tax liabilities and assess which way of using the VAT overpayment pays off best. Where high liabilities for income tax or other taxes are expected, offsetting the VAT overpayment may prove more beneficial than a cash refund.
Planning how to use a VAT overpayment should take into account the payment deadlines of other taxes and the financial cost of waiting for the refund. In some cases a faster cash refund may be more beneficial than offsetting against future liabilities, especially when the company needs funds for day-to-day operations
Keeping proper documentation of the VAT overpayment is also important. Taxpayers should keep all documents confirming the basis for the input VAT, especially when claiming accelerated refund periods.
A manufacturing company reported an excess of VAT of PLN 50,000 in its JPK_V7 for January. At the same time, it expects a CIT (corporate income tax) liability for the first quarter of PLN 45,000. Instead of claiming a cash refund, the business decided to offset PLN 45,000 against its future CIT liability and carried the remaining PLN 5,000 forward to the next VAT settlement period.
Tax audits and verification of VAT refunds
The tax authorities systematically check VAT refunds to verify whether they are justified. The intensity of checks depends on the amount of the refund, the period the taxpayer claims it in and the taxpayer's settlement history.
The most common areas of verification are:
- Correct calculation of input VAT on purchases
- Consistency of source documents with the accounting records
- Meeting the conditions for the chosen refund period
- Whether the business transactions actually took place
Taxpayers claiming accelerated VAT refund periods should be prepared for a detailed audit by the tax authorities. Verification may include checking bank documents, invoices, contracts and other documents confirming the business activity
If irregularities are found, the tax authority may refuse the VAT refund within the declared period or challenge the right to the refund altogether. Taxpayers then have the right to appeal against the tax authority's decision.
Properly prepared documentation and compliance with formal requirements significantly increase the chances of the VAT refund being paid smoothly within the chosen period.
