[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"advice-en-programmer-foreign-income":3},{"slug":4,"title":5,"excerpt":6,"body":7,"datePublished":8,"dateModified":8},"programmer-foreign-income","A programmer's foreign client: EU VAT, PIT and the NBP rate in 2026","How a JDG programmer settles a contract with a foreign firm: PIT in Poland, NBP rate, reverse charge, VAT UE registration and tax withheld abroad.","\u003Cp>A programmer living in Poland and working through a JDG (sole proprietorship) for a foreign client settles revenue in Polish PIT in the same way as for a domestic client — according to the chosen form of taxation, after converting the currency into zloty. The differences concern mainly VAT: a service for a foreign firm is as a rule not taxed in Poland, the invoice carries the note \"reverse charge\", and for a client from the Union, VAT UE registration and recapitulative statements are required. Below we discuss step by step what a foreign contract changes.\u003C\u002Fp>\u003Ch2>Income tax: residence decides\u003C\u002Fh2>\u003Cp>A person with a place of residence in Poland is taxed here on all their income, no matter where the client is based. A contract with a firm from Germany, the United Kingdom or the United States does not therefore change the form of taxation: revenue goes into the same register as domestic sales and is taxed on the scale, flat tax (podatek liniowy) or ryczałt (for many programming services at 12%).\u003C\u002Fp>\u003Cp>It is different when the programmer actually moves their life abroad or spends a significant part of the year there. Then it must be determined in which state they are a tax resident — the rules are described in the article \u003Ca href=\"\u002Fen\u002Fadvice\u002Fpit-tax-residency\">Tax residence in PIT\u003C\u002Fa>.\u003C\u002Fp>\u003Ch3>Currency conversion\u003C\u002Fh3>\u003Cp>Revenue in foreign currency is converted at the average rate announced by the NBP on the working day preceding the day on which the revenue arose. For services, this day is usually the day the service is performed or the invoice is issued, if it took place earlier. When payment comes in at a different rate, exchange differences arise that increase revenue or costs. The way of recognising them depends on the form of taxation.\u003C\u002Fp>\u003Ch2>VAT: EU client, non-EU client, app store\u003C\u002Fh2>\u003Cp>For services provided to firms, the place of VAT taxation is the state where the recipient has their seat (Article 28b of the VAT Act). The Polish programmer therefore does not add Polish VAT, and the tax is settled by the buyer in their own country.\u003C\u002Fp>\u003Ctable>\u003Cthead>\u003Ctr>\u003Cth>Client\u003C\u002Fth>\u003Cth>Registration\u003C\u002Fth>\u003Cth>Invoice\u003C\u002Fth>\u003Cth>Reporting\u003C\u002Fth>\u003C\u002Ftr>\u003C\u002Fthead>\u003Ctbody>\u003Ctr>\u003Ctd>Firm from another EU country\u003C\u002Ftd>\u003Ctd>VAT UE (also under VAT exemption)\u003C\u002Ftd>\u003Ctd>no Polish VAT, buyer's VAT UE number, note \"reverse charge\"\u003C\u002Ftd>\u003Ctd>VAT-UE recapitulative statement by the 25th day of the following month (JPK only for active VAT payers)\u003C\u002Ftd>\u003C\u002Ftr>\u003Ctr>\u003Ctd>Firm outside the EU (e.g. USA, United Kingdom)\u003C\u002Ftd>\u003Ctd>VAT UE not required\u003C\u002Ftd>\u003Ctd>no Polish VAT, with a note that the service is not taxable in Poland; note \"reverse charge\" if the tax is settled by the buyer\u003C\u002Ftd>\u003Ctd>JPK (for active VAT payers)\u003C\u002Ftd>\u003C\u002Ftr>\u003Ctr>\u003Ctd>App store based in the EU\u003C\u002Ftd>\u003Ctd>VAT UE\u003C\u002Ftd>\u003Ctd>invoice to the store operator, usually monthly, as for an EU firm\u003C\u002Ftd>\u003Ctd>VAT-UE (JPK only for active VAT payers)\u003C\u002Ftd>\u003C\u002Ftr>\u003C\u002Ftbody>\u003C\u002Ftable>\u003Cp>Important detail: the duty to register as a VAT UE payer also applies to an entrepreneur exempt from VAT, if they provide services to firms from other EU countries. Many people skip this step because they are \"not on VAT\". The procedure is described in the article \u003Ca href=\"\u002Fen\u002Fadvice\u002Fvat-ue-registration\">VAT UE registration\u003C\u002Fa>.\u003C\u002Fp>\u003Ch2>Tax withheld abroad\u003C\u002Fh2>\u003Cp>Some states and platforms withhold tax at source on payments to foreign service providers, especially on royalties (e.g. for app sales or software licences). It can usually be reduced or avoided by handing the payer a certificate of tax residence from a Polish tax office or the form required by the given state.\u003C\u002Fp>\u003Cp>If the tax is withheld anyway, an entrepreneur on flat tax may deduct it from the Polish tax, but only up to the part of the Polish tax proportionally attributable to the foreign income (Article 30c(4) of the PIT Act). A similar mechanism works on the scale. The details depend on the double taxation treaty with the given state.\u003C\u002Fp>\u003Ch2>Working physically abroad\u003C\u002Fh2>\u003Cp>A remote contract with a foreign client is one thing; working on the client's site is another. A longer stay in another state may:\u003C\u002Fp>\u003Cul>\u003Cli>require an A1 certificate from ZUS, so that contributions continue to be paid in Poland;\u003C\u002Fli>\u003Cli>with a permanent office or a long project on site give rise to the risk of a permanent establishment, i.e. taxation of part of the income abroad;\u003C\u002Fli>\u003Cli>on the transfer of the centre of vital interests change the tax residence.\u003C\u002Fli>\u003C\u002Ful>\u003Cp>Before leaving for a project lasting several months, it is worth analysing the provisions of the relevant double taxation treaty.\u003C\u002Fp>\u003Ch2>Example: an invoice in euros for a client from Germany\u003C\u002Fh2>\u003Cp>A programmer on ryczałt, exempt from VAT, registered as a VAT UE payer, performs a service in May 2026 for EUR 6,000 and issues an invoice on 29 May.\u003C\u002Fp>\u003Col>\u003Cli>Invoice: client's VAT UE number, amount in euros without Polish VAT, note \"reverse charge\".\u003C\u002Fli>\u003Cli>Conversion: the average NBP rate from the last working day before 29 May, i.e. from 28 May 2026, was PLN 4.2355, so the revenue is PLN 25,413.\u003C\u002Fli>\u003Cli>Ryczałt: 12% on PLN 25,413, or after rounding PLN 3,050 in the May settlement.\u003C\u002Fli>\u003Cli>VAT: by 25 June a VAT-UE recapitulative statement showing the service.\u003C\u002Fli>\u003C\u002Fol>\u003Cp>The turnover-based VAT exemption does not stand in the way of this transaction, but VAT UE registration is mandatory before the first service.\u003C\u002Fp>\u003Ch2>Most common mistakes\u003C\u002Fh2>\u003Cul>\u003Cli>No VAT UE registration before the first EU client.\u003C\u002Fli>\u003Cli>Skipping the VAT-UE recapitulative statement.\u003C\u002Fli>\u003Cli>Converting revenue at the rate from the day of payment instead of the day preceding the revenue.\u003C\u002Fli>\u003Cli>Adding Polish VAT to the invoice for a foreign firm.\u003C\u002Fli>\u003Cli>No certificate of residence, with the result that the platform withholds tax at source in full.\u003C\u002Fli>\u003C\u002Ful>\u003Ch2>How Good Balance can help\u003C\u002Fh2>\u003Cp>We register entrepreneurs for VAT UE, check the correctness of invoices for foreign clients, convert foreign-currency revenue and file VAT-UE statements as part of \u003Ca href=\"\u002Fen\u002Fservices\u002Faccounting\u002Fsimplified-accounting\">simplified accounting\u003C\u002Fa>. For contracts with an element of working abroad or withholding tax, we help obtain an \u003Ca href=\"\u002Fen\u002Fservices\u002Flegal\u002Ftax-interpretation\">individual tax interpretation\u003C\u002Fa>.\u003C\u002Fp>","2026-10-09"]