Businesses registered as active VAT payers can usually deduct the VAT on the invoice for the website and hosting.
What it means in practice
VAT (value added tax) is a tax added to the price of most goods and services. In Poland the standard rate is 23%, with reduced rates of 8% and 5% and some exemptions.
Why it matters for your business
VAT-registered businesses can usually deduct VAT on invoices for the website and hosting, so their cost is the net amount. Small businesses exempt from VAT pay the gross amount.
Examples and good practice
- Ask the client whether they’re VAT-registered.
- Explain the difference between net and gross cost.
- A tax ID (NIP) is needed for a VAT invoice.
- If in doubt, refer them to their accountant.
How to use it in a sales conversation
The Novi website and hosting are invoiced with 23% VAT. A VAT-registered business usually deducts the tax, so its real cost is PLN 1,995 net and PLN 125 net per month.
