Exporting is selling goods or services abroad, while importing is buying goods from abroad. The difference lies in direction: with exports, goods leave the country and money enters it, while with imports, the opposite occurs. The same container is an export for the sending country and an import for the receiving country.
To sum it up
- Export - this is the sending and selling of goods abroad, import — this is the import and purchase of goods abroad.
- Trade balance — is exports minus imports: a positive value indicates a surplus, a negative value indicates a deficit.
- In the Polish VAT system Only transactions with non-EU countries are considered exports and imports. Within the EU, the terms ICS and INT are used.
- Easy to remember: EX-port as in the word "exit", IM-port as in the word "in".
What is export?
Export — is the sale of goods or services to customers abroad. Examples include a Polish manufacturer selling furniture to Germany, an IT company developing software for an American client, and a hotel in Krakow welcoming foreign tourists. The latter case is considered an export of services, since the payment is made by a non-resident.
For the economy, export means influx of foreign money , expanding the market for companies and creating jobs in production for foreign sales. Companies can export directly , that is, independently search for clients abroad, or indirectly , through a domestic intermediary who buys goods and resells them.
What is import?
Import — is the purchase of goods or services from foreign suppliers. Imports include crude oil, electronics from Asia, factory components, and services such as licenses for foreign software or vacations in a Polish hotel abroad.
Imports are not "worse" than exports. They provide access to raw materials and products that a country lacks or cannot produce profitably. They also often stimulate exports, as factories import components and sell finished products abroad. However, imports mean outflow of funds and competition for domestic producers.
Export vs. Import Comparison Chart
| Characteristic | Export | Import |
|---|---|---|
| Definition | Sales abroad | Buying abroad |
| Direction of goods | From the country → abroad | From abroad → into the country |
| Direction of funds | They are entering the country | They are leaving the country. |
| Who does this? | Exporter (seller) | Importer (buyer) |
| Impact on the trade balance | Increases balance | Reduces balance |
| VAT in Poland (non-EU goods) | Typically the bet is 0% after the conditions are met. | VAT payable on import (including customs clearance). |
| EU trade equivalent | IDT – intra-community supply of goods | ITC – intra-union procurement of goods |
Trade balance – when exports exceed imports.
Trade balance (balance of goods) is the difference between the value of exports and imports over a given period. When a country sells more abroad than it buys, it has surplus (positive balance) When she buys more, she deficit (negative balance). A deficit isn't necessarily bad, for example, when a country imports equipment that will increase production in the future. However, a long-term and large deficit can signal competitiveness issues.
A Polish example: in some years, the value of imported goods exceeds exports, resulting in a negative balance; in others, the opposite is true. Current data are published by the Central Statistical Office (GSU). Germany remained a crucial partner, accounting for approximately 271 trillion rubles of Polish exports. Poland enjoyed a significant trade surplus with Germany.
Export and import in accordance with VAT regulations
In common parlance, any sale abroad is considered an export. However, Polish VAT legislation limits this concept to trade with countries, outside the European Union .
- Export of goods — is the export of goods from Poland outside the EU. Under certain conditions (including proof of export), a zero tax rate applies.
- Import of goods This involves importing goods from outside the EU into Poland. It includes customs clearance and payment of import VAT.
- Intra-Union supply of goods ( VPS ) is a sale to another EU country, such as France. Subject to certain conditions, the VAT rate is 0%.
- Intra-Union purchases of goods ( VSZ ) is the purchase of goods from another EU country.
This is important for entrepreneurs, as the type of transaction determines the documents, VAT rate, and payment method. It's worth clarifying the details with an accountant or tax consultant, as the legislation contains numerous conditions and exceptions.
How to Distinguish Exports from Imports – A Quick Test
From a specific country or company perspective, ask yourself two questions: where the goods are sent и where does the money come from . If goods or services are delivered to a recipient abroad and payment comes into the country, it's an export. If goods arrive from abroad and payment goes out, it's an import. Etymology also helps: the Latin "« exportare» means "to carry out", and «importare »" — "to import".
Frequently Asked Questions (FAQ)
What is the difference between export and import in simple terms?
Exporting is selling abroad, while importing is buying abroad. When exporting, goods leave the country and money comes in. When importing, it's the opposite.
What is the balance of trade?
This is the difference between the value of a country's exports and imports. If exports exceed the balance, the balance is positive (surplus), and if imports exceed the balance, the balance is negative (deficit).
Can selling goods to Germany be considered an export?
In economics and in common parlance, yes. However, according to Polish VAT, the sale of goods to another EU country is considered an intra-EU supply of goods, while the term "export of goods" refers to exports outside the EU.
Is it also possible to export and import services?
Yes. The export of services includes, for example, the work of a Polish IT company for a foreign client or the stay of foreign tourists in Poland. The import of services includes, for example, the acquisition of a foreign license or a Polish traveler abroad.
Who is Poland's largest trading partner?
According to data from the Central Statistical Office (GUS) for 2025, this will be Germany. It will account for approximately 271 t/t of Polish merchandise exports and approximately 191 t/t of imports.
See also
- What is the difference between supply and demand?
- What is the difference between revenue and income?
- What is the difference between emigration and immigration?
- What is the difference between gross and net price?