- Business in Poland -
The Tax Identification Number (NIP)
What is the Tax Identification Number (NIP) in Poland?
The Tax Identification Number (NIP) is an individual ID number assigned by the Tax Office in Poland. It helps the tax authorities identify and track taxpayers, ensuring they comply with tax regulations. This number is a key tool for managing tax duties, social security contributions, and other government payments. In this article, we'll cover the basics of NIP – what it is, who needs it, how it's structured, and how to get one.
The NIP is a 10-digit number given to taxpayers by the Tax Office. It was introduced by the Act on Taxpayer Registration and Identification on August 29, 1997. The number is used by the authorities to keep track of taxpayers, handle their tax obligations, and manage social security and other contributions.
Who needs a Tax Identification Number in Poland?
Having an NIP is required in certain situations. It’s assigned to:
- Business owners – This includes individuals and legal entities running a business or performing freelance work.
- VAT taxpayers – Anyone registered as an active VAT taxpayer or who has applied to be registered.
- Social security contribution payers – People who are required to pay social security or health insurance contributions.
- Legal entities and organizations – This covers entities like foundations, associations, companies, public institutions, and other organizations that need to submit tax declarations.
People who only earn private income (for example, employees) and don’t run a business don’t need an NIP. In their case, a PESEL number (Polish ID number) is enough.
Structure of the NIP Number: What do the digits mean?
The NIP is made up of 10 digits, which are assigned in a specific way:
- The first three digits (XXX) represent the Tax Office code that issued the NIP.
- The next six digits (YYYYYY) are a randomly assigned identifier for the taxpayer.
- The last digit (Z) is a check digit, which is calculated using a special algorithm to make sure the number is correct.
The check digit is calculated based on the other digits, and it can’t be 10, which helps prevent errors in data entry.
How to get a NIP Number in Poland?
The process of getting an NIP depends on your status and type of business activity. The number is assigned after you submit the appropriate registration form:
- Individuals running a business – When you register your business by filling out the CEIDG-1 form, you’ll get an NIP. Once assigned, this NIP stays with you, even if you start other businesses.
- Legal entities and organizations – They receive an NIP after submitting the NIP-2 form directly to the Tax Office when registering a legal entity.
- Individuals who don’t run a business but are taxpayers or social security contributors need to submit the NIP-7 form.
How long does it take to receive a NIP number?
The NIP is free, and it will be issued within 3 business days after submitting a complete application. Once an individual receives an NIP for their business, it stays the same, even if they later start other businesses.
How to verify a Tax Identification Number (NIP) in Poland?
Checking the NIP is important for running a business, especially when entering contracts or issuing invoices. In Poland, there are a few ways to verify an NIP:
- CEIDG Search – For business owners registered in the Central Register and Information on Business Activity, you can check the NIP on the official government website by company name, REGON number, or address.
- KRS Search – For companies and other legal entities registered in the National Court Register (KRS), you can use a search tool to verify the NIP.
- Ministry of Finance Service – The Ministry of Finance offers an online service where you can check if a NIP is active or has been invalidated.
What is the NIP certificate and when is it needed?
The NIP certificate is a document confirming your registration in the tax system. You may need it when opening a business bank account, handling certain administrative procedures, or when working with contractors who require confirmation. The certificate can be requested in either paper or electronic form.
Author: Attorney Joanna Chmielińska
Head of Business Law Department | Partner
E:mail: j.chmielinska@kkz.com.pl
