NIP – Tax Identification Number, like PESEL, is used to catalog taxpayers. Thanks to them, it is possible not only to settle with offices, but also to perform many legal actions. Every person working in Poland must have their NIP or PESEL assigned and this obligation applies to all foreigners.
What is NIP?
The NIP is a ten-digit number that is assigned to a specific person or company. It is used for many activities, but the most important function is fulfilling when filling in a PIT – a tax form, from which entrepreneurs and employees have to settle once a year. NIP allows you to specify the amount of taxes, but also to take into account discounts and rebates.
The NIP is not automatically granted, and in order to receive it, you must complete the NIP-7 letter, which is available on the website of the Ministry of Finance, and then return it to the appropriate tax office.
It is worth remembering that every person who was running for a permanent or temporary residence permit and then made a report, will have a PESEL number which will be displayed on the documents provided by the civil registry office. Having a PESEL you do not have to apply for a NIP, because these numbers have a very similar function.
Important! NIP is necessary when you want to set up your own company in Poland and run a business.
What can be accounted for by NIP?
Every person who legally works in Poland receives a PIT form every year, who is sent to the registered address. PIT 11 is generated by the employer and he is obliged to provide it to the employee at the end of February. On the other hand, the taxpayer must complete and send PIT 37 at the latest on 30 April. The NIP number is necessary to receive the form and be able to complete it, and thus receive a tax refund, which in some cases may constitute a significant amount.
On the basis of PIT 11, the employee complements PIT 37, which is the basis for granting reimbursement or accruing concessions. Although the form may seem difficult to describe at first, you do not need any specialist knowledge to do it yourself.
NIP improves the filling of PITs
The great simplification is that all tax declarations can be completed and sent over the internet for several years. It is necessary to have a PESEL or NIP number. In this case, the system itself calculates rates, discounts, refunds, outstanding amounts, etc. It is enough to enter your TIN into a dedicated window, and then it is revealed automatically completed with PIT 37, which can be immediately sent to the competent authorities. The information is collected from the tax office system on the basis of data received from the employer, which includes payout, seniority, etc.
It is important to remember that both the form and the e-mail confirming its sending should be printed and kept until the next settlement for the year. These are also full-fledged documents in the case of control of the tax office.