Poland’s New Short-Term Rental Definition Could Increase VAT and Tax-Classification Risks

Summary

Legislation submitted for presidential signature would classify generally available rentals of less than 30 days as hotel services. However, it does not directly amend the Polish VAT or income-tax rules.
Short-term accommodation supplied by an active VAT taxpayer is generally subject to the reduced 8% VAT rate, while qualifying small operators may continue to benefit from the turnover-based VAT exemption.
The new definition could nevertheless lead to greater scrutiny of whether short-term rental constitutes an organized business activity, with potential consequences for VAT registration, social-security contributions and property taxation.

Extended article

A Polish legislative amendment submitted for presidential signature would expand or clarify the definition of hotel services. The new definition would cover the generally available rental of houses, apartments, rooms and other accommodation for periods of less than 30 days per customer.

The amendment primarily regulates the provision of hotel services and does not directly change the taxation of short-term rentals. It therefore does not automatically require every private individual who occasionally rents out an apartment to register a business or become an active VAT taxpayer. The scale, organization, continuity and commercial nature of the rental activity remain relevant to its tax classification. Prawo.pl

Nevertheless, expressly classifying short-term rentals as hotel services could influence the approach taken by the tax authorities. In particular, the new terminology may support the view that a continuous and professionally organized rental activity constitutes an economic activity rather than passive management of private property.

From a VAT perspective, short-term accommodation must be distinguished from the letting of residential property for residential purposes, which may qualify for a VAT exemption. Where short-term accommodation is supplied by an active VAT taxpayer, the service is generally subject to the reduced 8% VAT rate. Smaller operators may still benefit from the turnover-based VAT exemption, provided all statutory conditions are met. Prawo.pl | ERPHome

The proposed definition does not, by itself, create an automatic VAT-registration obligation. Short-term rental operators should nevertheless assess:

the number of properties offered;
the frequency and continuity of the rentals;
the level of organization of the activity;
whether additional accommodation or hospitality services are provided;
annual turnover and entitlement to the small-business VAT exemption;
the VAT treatment of commissions charged by foreign booking platforms; and
whether the contractual model involves a direct accommodation service or a B2B lease to an intermediary.

Platform commissions require particular attention. Even an operator benefiting from the small-business VAT exemption may be required to register for EU VAT purposes and account for Polish VAT under the reverse-charge mechanism on services purchased from a foreign booking platform. This obligation is separate from the VAT treatment of the operator’s own accommodation income. ERPHome

The main impact of the amendment is therefore not an immediate change in VAT legislation, but a potentially higher risk of reclassification and tax disputes. Operators should review their rental model, VAT position and platform arrangements and retain documentation supporting the tax treatment applied.

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