How does the tax office treat cryptocurrencies? A guide to cryptocurrency taxes in Poland

The tax situation for cryptocurrency investors in Poland has undergone significant changes in recent years. Today, the Polish tax law addresses cryptocurrencies through several separate mechanisms that every trader or investor should be aware of. Let’s take a detailed look at the tax obligations faced by individuals dealing with digital assets.

PIT – how to settle profits from trading

Income from the sale of cryptocurrencies falls into the category of capital gains. Since 2019, a unified rate has been in effect – the tax on cryptocurrencies is 19% on the actual profit (income minus costs).

Importantly, to correctly settle your cryptocurrency tax, you must document each purchase. Invoices from exchanges, transaction confirmations, or account statements are your basis for demonstrating deductible costs. Problems arise when transactions occur under unclear conditions – then the tax office may challenge the actual acquisition cost.

A significant restriction: losses from trading cryptocurrencies cannot be deducted from income from other sources. This means that if you earn from stocks but lose on Bitcoin, you cannot reduce your taxable base. The annual settlement is made through the PIT-38 declaration, which must be submitted by April 30 of the following year.

VAT – special status of digital currencies

The EU Court of Justice in ruling C-264/14 established that exchanging cryptocurrencies for traditional currencies (and vice versa) is not subject to VAT. The reasoning is simple: EU law treats cryptocurrencies as a means of payment, thus exempt from VAT, similar to exchanging zloty for euros.

However, this only applies to direct exchanges of crypto for fiat currency. Purchasing goods with cryptocurrencies or services paid in digital assets may be taxed with VAT in a different manner.

End of the civil law activities tax

The times when every cryptocurrency transaction could be taxed with PCC (1% of market value) are over. Since 2019, this obligation has been abolished, significantly easing the situation for traders. The previous solution led to absurd situations where the tax on a transaction was higher than the actual profit.

Cryptocurrency mining – tax rules

Mining income is classified differently depending on the scale of activity:

If you conduct mining as a formal business activity, the tax on cryptocurrencies is calculated normally – 19% on net income (revenue from mining minus operational costs). This means you can deduct expenses for equipment, electricity, and maintenance.

For hobbyist mining (for personal use), the tax applies only at the moment of selling the mined coins. Then, the income is calculated as the difference between the sale price and the market value on the “production” day of the block.

Transaction record-keeping – the foundation of proper settlement

Lack of reliable documentation is a direct path to problems with the tax authorities. If you cannot demonstrate the acquisition costs of cryptocurrencies, the office will assume that the entire sale revenue is profit. Keeping a transaction journal, obtaining confirmations from exchanges, and archiving all evidence is not bureaucratic unnecessary work but a safeguard for your interests.

What awaits us in the future?

Poland is gradually aligning its regulations with EU standards, particularly with the MiCA (Markets in Crypto-Assets) directive. New regulations will be introduced across the European Union, meaning that the tax on cryptocurrencies will become even more unified. The Polish cryptocurrency tax will need to be consistent with the European approach to digital asset taxation.

Crypto investors should be aware that tax law in this field is still evolving. It is advisable to monitor legislative changes and consult with tax advisors to avoid issues during settlement.