Poland: VAT Refunds for Foreign Entities and KSeF: What Has Changed and What You Need to Know

The introduction of mandatory KSeF has changed not only day-to-day invoicing but, something that is far less discussed, has also affected certain procedures, including the VAT refund process for foreign entities. The topic may seem niche, but it is highly relevant for companies within a capital group headquartered abroad, foreign counterparties purchasing in Poland, and diplomatic missions and international organisations.

Two Different VAT Refund Procedures: an Important Distinction

Before turning to the changes, it is worth clarifying what we are talking about. Polish tax law provides for two distinct VAT refund routes:

Refund of excess input tax over output tax is the mechanism for Polish VAT taxpayers who, in a given settlement period, had more VAT to deduct than to pay. The claim is submitted via JPK_V7. Here, KSeF has shortened the standard refund period from 60 to 40 days.

VAT refund for foreign entities (VAT-Refund) is a separate procedure for entities that have no registered seat or fixed establishment in Poland from which they carry out business transactions, but have incurred VAT-related expenses in Poland. It applies to VAT taxpayers from other EU member states (Directive 2008/9/EC) and entities from third countries (the Thirteenth VAT Directive). Separate, though similarly adapted to KSeF, rules also apply to diplomatic missions, consular offices, and international organisations. The application is submitted through the relevant authority or electronic system of the applicant’s member state.

It is this second procedure, VAT-Refund, that has been modified in connection with KSeF.

What Has Changed in the VAT-Refund Procedure?

KSeF number instead of a copy of the invoice

Until now, a foreign entity applying for a refund of VAT paid in Poland was required to attach to its application the invoices documenting the purchases: either as originals, certified copies, or in electronic form submitted to the tax office on the date of filing.

Under the amended provisions, the process is simplified: where a purchase has been documented by an invoice issued in KSeF, it is sufficient to provide the KSeF identification number in the refund application. There is no longer any need to attach the invoice as a supporting document, provided the KSeF number is included in the application. The tax office verifies the invoice independently via KSeF.

The obligation to attach the invoice remains only where the invoice does not have a KSeF number, such as:

• invoices issued in offline mode or in cases excluded from the KSeF obligation,
• paper invoices, for which an original or copy is still required,
• electronic invoices without a KSeF number, which must be submitted or made available on the date of filing.

Elimination of unnecessary administrative steps

The Ministry of Finance regulation has also introduced procedural changes on the part of the tax authorities, including the removal of the obligation to stamp and punch invoices returned to applicants after verification. While a minor detail, from the applicant’s perspective this means fewer formalities and faster processing.

Changes relating to goods returns and corrective invoices

The rules have also been modified for situations where an eligible entity returns goods to the seller, for example following a complaint. Where the seller refunds the amount including VAT, the obligation to notify the tax office of the corrective invoice previously fell on the seller. Under the new rules, this obligation shifts to the foreign entity: it is now the foreign entity that informs the head of the tax office of the corrective invoice received and the VAT refund.

Transitional provisions

The amended provisions apply to applications covering periods from 1 January 2026 onwards, filed from the date the amendment enters into force. Applications for periods prior to 1 January 2026 are still processed under the previous rules, and applications for 2026 filed before the new provisions came into force are also handled under the previous regime.

What Does This Mean in Practice?

Foreign group companies purchasing in Poland

Companies within capital groups whose parent or sister company is headquartered abroad and incurs expenses in Poland, for example by participating in trade fairs, purchasing services from Polish suppliers, or acquiring goods, may apply for a refund of Polish VAT through the VAT-Refund procedure. The new provisions simplify the documentation process, but only in practice where the Polish supplier issues the invoice in KSeF and provides the KSeF number to the counterparty.

Practical tip: it is worth informing Polish suppliers that the foreign counterparty intends to apply for a VAT refund through the VAT-Refund procedure, and requesting that the KSeF number be included on the invoice visualisation sent to them or in the accompanying correspondence.

Diplomatic and consular missions

For this category, the change is analogous: purchases documented by invoices with a KSeF number do not require physical attachment of documents to the application. The regulation governing VAT refunds for this group of entities has also been updated to reflect the specific characteristics of structured invoices.

Polish companies issuing invoices to foreign counterparties

Although the change directly concerns foreign applicants, Polish taxpayers should be aware that:

• invoices issued to foreign counterparties, for example in the context of intra-Community supply of goods or export of services, still enter KSeF, but must additionally be made available to the counterparty outside the system, for example as a PDF file, a paper printout, or in another agreed form,
• where an invoice is made available to a foreign counterparty outside KSeF as a visualisation, it is important to ensure the visualisation includes the required markings or codes enabling invoice verification, in accordance with the mode of its issuance,
• a foreign buyer without access to KSeF should receive the invoice visualisation promptly after it has been issued.

A particular situation that frequently arises in practice: companies registered for VAT in another EU member state must carefully analyse which of the invoices they issue are required to be submitted to KSeF and which are not. The determining criterion is the place of taxation of the transaction, not the country in which the company is established.

KSeF and the General VAT Refund: What Else Changed in 2026?

For completeness, it is worth noting the changes affecting Polish taxpayers:

From the settlement for February 2026, the standard refund period for excess VAT has been shortened from 60 to 40 days. This is a consequence of the introduction of mandatory KSeF: the former preference for voluntary users of the system, a 40-day refund under specific conditions, has been replaced by a universal 40-day deadline for all taxpayers.

The structure of the JPK_V7 file has also changed: from version JPK_V7(3), the fields relating to refund applications have been updated. It is worth verifying that accounting systems support the new structure.

The shortened deadlines, 25 days and 15 days, remain unchanged and continue to require the fulfilment of additional conditions.

Why Does Outsourcing Accounting and VAT Advisory Help with Changes Like These?

VAT-Refund procedures, international invoicing in KSeF, rules for making invoices available outside the system, QR codes on visualisations, KSeF numbers in refund applications: this is an area where errors are easily made, particularly when dealing with counterparties from multiple countries.

Companies operating in Poland and abroad, like many of BPiON’s clients, benefit from having a single service provider that understands both the Polish KSeF regulations and the cross-border context: how an invoice issued in the Polish system reaches a foreign company, how to verify a KSeF number when applying for a refund, and how to put procedures in place for situations where a foreign counterparty requests a VAT recovery.

If you work with foreign counterparties, belong to a capital group with a foreign parent, or simply want to be confident that your invoices are being correctly issued and made available, we invite you to get in touch with the BPiON team.