What is the VAT account used for?
The VAT account in the bank is used to record the company's tax liabilities towards the state due to value added tax (VAT) in Poland.
Entrepreneurs in Poland receive a free VAT account option when opening a main bank account.
The VAT account allows you to track all transactions related to the payment and refund of VAT. For entrepreneurs conducting trade or service activities, having a VAT account is mandatory.
The VAT account is credited with funds from the sale of goods and services subject to VAT, as well as the amount of VAT that the entrepreneur may receive when purchasing goods and services from other companies. At the same time, the entrepreneur cannot freely dispose of the funds received on the VAT account, as these funds must be used to settle tax liabilities towards the state.
If the entrepreneur does not use the received VAT for the purchase of goods and services including this tax, but transfers it to the company's current account, he may do so only after obtaining permission from the tax inspection. The head of fiscal control must agree to transfer funds to the current account within 60 days.
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