What is a NIP

What is a NIP number for

A tax identification number (NIP) allows tax authorities to identify taxpayers, tax remitters and collectors.

A taxpayer is a natural person, a legal person or an organizational unit without legal personality, subject to tax under tax laws.

A remitter is a natural person, a legal person or an organizational unit without legal personality that is required under tax law to calculate and collect a tax from a taxpayer in order to transfer it to the tax authority in due time. For example, an employer is a tax remitter for their employees.

A collector is a natural person, a legal person or an organizational unit without legal personality that is required to collect a tax from a taxpayer and transfer it to the tax authority in due time. The collector is not required, however, to calculate the amount of tax due (or e.g. the amount of advance tax payments or instalment payments towards the tax). For example, a housing cooperative can act as a collector.

The other tax identifier used in Poland, besides the NIP number, is the PESEL number.

A PESEL number is the tax identifier for those taxpayers who are natural persons and who:

• do not conduct business activity, but instead earn their income, for example, from a contract of mandate, employment contract or contract for specific work
• are not registered taxpayers of value added tax.

Please note! If you run a business, your tax identifier is your NIP number. You are required to use it when submitting any tax-related declarations, statements, returns or when making a tax payment.

Who needs to use a NIP number

The following types of taxpayers need to use NIP as a tax identifier:

• natural persons conducting business activity
• legal persons (foundations, associations, limited liability companies, joint-stock companies) or organizational units without legal personality (general partnerships, professional partnerships, limited partnerships, limited joint-stock partnerships) that are taxpayers under tax law
• taxpayers of value added tax
• bodies other than natural persons, legal persons or organizational units that are taxpayers under tax law (for example, a civil law partnership with regard to value added tax)
• tax remitters
• payers of social and health insurance contributions
• persons pursuing non-registered activity.

How to obtain a NIP number

In order to obtain a NIP number, you must submit a NIP-7 identification form.

A natural person starting a one-person business activity can submit an identification form for the issue of a NIP number when registering their business activity in CEIDG register as part of their application for entry in the register.

The NIP identification form will be then forwarded to the tax office automatically.

Natural persons conducting non-registered activity, which is not subject to the obligation of registering in CEIDG, or VAT taxpayers, can obtain a NIP number by submitting a NIP-7 identification form to the head of the tax office competent for their place of residence.

Entrepreneurs and tax remitters must submit a NIP identification form no later than within the time limit provided for the submission of their first tax declaration, tax return, information or statement or when making their first payment of tax.

Partners in a general partnership, limited partnership, professional partnership, limited joint-stock partnership that are payers of social and health insurance contributions, or that are taxpayers of income tax must also submit a NIP-7 identification form to the head of tax office competent for their place of residence.

In the case of a civil law partnership, the identification form must be submitted by:

• all partners in the partnership – as part of their individual applications for entry of their business activity in CEIDG register
• the civil law partnership itself – using the NIP-2 identification form.

Please note! A civil law partnership needs to have its own NIP, because it may need to pay social insurance contributions for its employees or may have the status of a taxpayer under certain tax laws. Therefore, a civil law partnership must obtain its own NIP number.

Read on how to submit a NIP-7 identification form.

How to update a NIP identification form

A NIP number is issued based on the details provided in the identification form. The data provided is then linked to your NIP number.

The NIP number cannot be changed, however, when the details provided in the identification form change, they need to be updated. The update should be made within 7 days from the date on which the details change.

The method of updating the data differs depending on the person or body making the update.

Business Activity Central Register and Information Record System (CEIDG) is the body responsible for any update in the data of:

• natural persons conducting activity entered in CEIDG register
• partners of a civil law partnership.

Please note! In the event of a change in the data of a civil law partnership which are disclosed in the identification form (for example, a change of the last name of a partner if it is included in the partnership’s name), the partnership must submit a NIP identification form, using for this purpose the NIP-2 form, independently of the partner submitting their form.

The following persons or bodies should update their identification details by submitting a NIP-7 form to the head of the competent tax office:

• natural persons that pursue an activity not subject to registration in CEIDG, i.e. a non-registered activity
• VAT taxpayers that pursue an activity not subject to registration in CEIDG
• natural persons not subject to the obligation of registering in CEIDG that pursue an activity in their own name (for example, court bailiffs)
• partners of a general partnership, limited partnership, professional partnership, limited joint-stock partnership.

Where do you need to provide a tax identification number (NIP)

Taxpayers are required to provide their tax identifiers on any forms used in connection with paying their tax liabilities and non-tax duties collected by the tax or customs administration.

In addition, NIP should be provided each time if requested by:

• central or local government bodies
• the National Revenue Administration (Polish customs and tax authorities)
• the Supreme Audit Office
• banks and cooperative credit unions
• parties to civil law transactions
• tax remitters and collectors of taxes and non-tax duties.

Tax remitters and collectors will request that taxpayers disclose their tax identifier for the purpose of filling out any documents used in connection with remitting tax and non-tax duties to the tax or customs administration.

Please note! From 1 January 2020, in the case of sales recorded in the fiscal cash register and confirmed by a receipt, a buyer who wishes to receive a VAT invoice needs to provide their NIP number before the receipt is issued in order for it to be added to the receipt. Only if the receipt includes NIP, will the seller be allowed to issue a VAT invoice based on the receipt.

This means that the customer has to specify at the moment of the transaction already whether or not they want to receive a VAT invoice.

How to report liquidation of your business to the tax administration

A natural person conducting business activity subject to registration in CEIDG should report the termination of their business activity to CEIDG register.

A natural person conducting business activity not subject to registration in CEIDG should report information on the liquidation of their business activity, company or partnership by submitting a NIP-7 form.

In the case of a civil law partnership, all partners can submit an update NIP identification form as part of the applications that they submit to CEIDG for deleting their respective entries from the register. The liquidation of a civil law partnership must be reported to the tax office independently of any individual applications submitted by the partners to CEIDG, using the NIP-2 update form.

Read how to file the termination of your business activity to CEIDG.

Certificate of issue of a NIP number

You may need to obtain a certificate of issue of a NIP number when, for example, your business participates in a tender bid or when you apply for a loan.

Also, you may be asked for a NIP certificate by a contractor who wants to check whether the NIP number you use has actually been assigned to you (or your business). Certificate of issue of a NIP number is issued by the head of the competent tax office.

This certificate is issued without delay, no later than within 3 days from the date of receiving by the head of the tax office a correctly filled out identification form.

Learn how to apply for a certificate of issue of a NIP number.