Deposit vs Advance Payment in Poland: What Can You Get Back After an Undelivered Service?

You arranged a renovation, paid part of the price up front, and the contractor vanished. Or you booked a service online, knew there'd be an extra cost, but the contract used the word zadatek rather than zaliczka and you're not sure what that changes. These two Polish words — zadatek (earnest-money deposit) and zaliczka (advance payment) — sound almost interchangeable, yet under Polish law they mean very different things. Which one you paid decides whether you get your money back or lose it. This guide explains the difference and sets out what you can do in each situation.

This guide is general legal information, not legal advice. How the rules apply depends on the contract, the evidence and the circumstances, and on whether the matter is consumer, civil or business-to-business. If you need advice or representation, the matter should be assessed by a qualified Polish lawyer or the relevant specialist. Twoja Sprawa helps you organise the documents for that assessment.

Zadatek vs zaliczka under the Polish Civil Code

The words look similar, but the law treats them very differently. What decides whether a payment is a zadatek or a zaliczka is, above all, what the contract actually says. If the contract is silent, the courts have to work out what the parties intended.

Zadatek — earnest-money deposit (Article 394 of the Civil Code)

A zadatek is a payment made to secure performance of the contract. Its main purpose is protective — and punitive:

• If the contract is performed (the renovation gets finished, say) — the zadatek is simply set off against the price, effectively working like a discount.
• If the other party fails to perform (the contractor never starts the work) — if you paid the deposit, you can withdraw from the contract and keep it (or you can claim it back instead — the law gives you the choice). If you are the one who failed to deliver, the other party can demand the deposit back plus compensation for their loss.
• If you pull out without good reason — you normally lose the deposit. That is the whole point of a zadatek: it penalises whoever walks away.

In short: a zadatek is a "penalty deposit" designed to force both sides to honour the deal.

Zaliczka — advance payment

A zaliczka is simply a prepayment towards a future service. It has no penalty function at all:

• If the contract is performed — it's set off against the price, just like a zadatek.
• If the other party fails to perform — as a rule, the zaliczka is refundable in full (subject to the contract and the circumstances).
• If you cancel — you're normally entitled to a refund, as a rule less whatever costs the business genuinely incurred (materials already bought that can't be resold, for example).

Think of a zaliczka as an ordinary deposit — money handed over on account of the contract that either comes straight back or gets settled against real costs.

Przedpłata — prepayment (general term)

This is the broadest term — it simply means any payment made before the service is delivered. Contracts often just say "prepayment", which can mean either a zaliczka or a zadatek depending on what the parties intended. If the contract doesn't spell it out, a court will have to infer what was meant.

Why the wording of the contract matters so much

If the contract clearly says zadatek, then it is a zadatek — even if the person who signed it thought it meant something softer. That's the whole point of a written contract: the words on the page count. So it pays to:

1. Read the contract carefully before signing,
2. Ask what the term actually means if it isn't clear,
3. Ask for the wording to be changed if you want a different arrangement.

Where the word zadatek isn't used explicitly, courts tend to lean towards treating a payment as a zaliczka — the more consumer-friendly reading.

Consumer or business — the rules differ

If you're a consumer

If you're ordering a service (home renovation, cleaning, an internet subscription) in a private capacity, you're a consumer, and you get broader protection:

• The contract cannot contain unfair terms (clauses that are drastically one-sided). A clause saying "you lose your deposit for any change of mind, however minor" could well count as an unfair term.
• You have a 14-day right of withdrawal for contracts concluded at a distance (Article 27 of the Polish Consumer Rights Act) — though there are exceptions (see below).
• You can turn to the Consumer Ombudsman (Rzecznik Konsumentów) for free help and mediation.

If you're a sole trader treated as a consumer

If you run a business (e.g. as a sole trader, JDG) and order a service connected with that business but not central to your professional expertise, you may qualify for some consumer-style protections (Articles 385⁵ and 556⁴–556⁵ of the Civil Code, Article 38a of the Consumer Rights Act) — but whether you actually qualify needs a lawyer's assessment.

If it's a pure business-to-business deal

Two businesses contracting on a commercial footing. Here:

• The parties can contractually limit or exclude the statutory warranty for defects (rękojmia).
• There's no consumer protection — no 14-day cooling-off period, no mandatory warranty.
• You lose the deposit or get the advance payment back strictly according to what the contract says.

Scenario 1: The company never delivered the service — what to do

You paid a deposit or advance payment, and the contractor never showed up, never started, or downed tools halfway through.

If it's a zadatek

• You can withdraw from the contract and demand the deposit back — potentially double the amount (Article 394 of the Civil Code).
• You can also claim compensation for your losses (the cost of hiring another contractor, wasted time, etc.).
• The court will assess whether those losses are real and can be substantiated.

If it's a zaliczka

• As a rule, it's refundable in full if the service was never performed (subject to the contract and the circumstances).
• Depending on the situation, you may also be able to claim compensation for actual loss (this needs to be proven).

Step by step

1. Send a formal request to perform — a letter (by post or email) giving a deadline to carry out the work (at least 2–3 weeks). This proves you gave them a fair chance.
2. Send a demand for payment/refund — if the deadline passes with nothing done, send a further letter with a clear demand for a refund plus any compensation.
3. Mediation or court — if the demand goes nowhere, try mediation, or issue a claim in court.

Scenario 2: You're the one pulling out — what you stand to lose

You've changed your mind, found another contractor, or simply dropped the whole idea. What happens to your money?

If it's a zadatek

• You normally lose it — that's precisely what it's for: a penalty for pulling out without justification.
• Exception: if you're a consumer who contracted at a distance, you have 14 days to withdraw without giving any reason, in which case the deposit must be returned (Articles 27 and 38 of the Consumer Rights Act).
• If you have a good reason for withdrawing (the contractor started doing shoddy work, is badly delayed, etc.), a court may find you can withdraw without losing the deposit — but that depends on the specific facts.

If it's a zaliczka

• It should be refunded, as a rule less whatever costs the business genuinely incurred:
• Materials already bought that won't be used.
• Work already carried out (depends on the contract — usually costs up to the point of cancellation).
• If the company simply says "you lose everything", you don't have to take that at face value — a court will ask what costs it actually incurred.

If you're a consumer — the right of withdrawal

If you contracted at a distance (online, by phone, without visiting the trader's premises) or away from business premises, you have a 14-day right to withdraw without giving a reason (Article 27 of the Consumer Rights Act). But there are exceptions:

• Services fully performed with the consumer's express consent — if you've already received the whole service, you can't withdraw.
• Accommodation, car hire, and catering services, where the contract specifies a particular date or period of performance — no right of withdrawal applies (Article 38(12)).

In other words: if you hire a car for specific dates, you can't cancel five days later and demand your deposit or advance payment back. This matters for anything booked for a fixed slot.

Scenario 3: The company did the work, but badly — what to claim

The contractor finished the renovation, but not to the standard agreed. What are your rights over the money you paid?

The legal basis

The business is obliged to perform the service in line with the contract and with due care (Articles 471 and 491 of the Civil Code). If it hasn't:

• You can demand that the work be put right.
• You can demand a price reduction (how much depends on the scale of the defect — a minor fault means a small reduction).
• In serious cases, you can withdraw from the contract and demand the whole payment back — it makes no difference whether it was a deposit or an advance payment, if the contract wasn't performed properly.

Evidence

This is where preparation counts:

• Photos/video of the state before and after (defects, in a renovation case).
• Texts and emails with the contractor recording your objections.
• An expert's assessment, if the defect is technical.

Building your case for a possible court claim

If the matter is heading to court, put together a pack of evidence:

1. The contract (original or scan).
2. Proof of payment (bank statement, receipt, invoice).
3. Correspondence with the contractor (emails, texts, messages).
4. Your written demand (sent by post or a traceable email).
5. Evidence of non-performance or poor performance (photos, reports, assessments).
6. Witness statements, if you have any.

When you should bring in a lawyer

Get specialist advice when:

• The sum involved is significant (well into four figures in PLN).
• The contract is complex (long, with detailed conditions).
• The dispute concerns building works — limitation periods and procedure are different here (Article 647 of the Civil Code).
• The company rejects your claim and threatens a counterclaim.
• You're not sure whether you paid a zadatek or a zaliczka, and the contract doesn't make it clear.

When a claim may not be worth pursuing

Not every dispute is worth taking to court:

• The sum is below around 500 PLN — court costs can outweigh what's at stake.
• There's no clear evidence — if the agreement was verbal and it's now your word against theirs, the court may not be convinced either way.
• The company is abroad or untraceable — enforcing a judgment would be difficult.
• The defect is trivial — a court is unlikely to grant much more than a small price reduction, if that.

In these cases, it's often better to look for an amicable settlement (mediation, splitting the difference).

Common mistakes people make

1. Not reading the contract — signing without understanding whether the payment is a zadatek or a zaliczka.
2. Never putting anything in writing — relying only on phone calls, which later becomes one person's word against the other's.
3. Waiting too long — claims become time-barred; for work under a contract for a specific result (umowa o dzieło), the limitation period is 2 years from delivery of the work (Article 646 of the Civil Code).
4. Throwing away evidence — receipts, texts, photos can all matter later.
5. Agreeing to "sort it out" informally, with nothing on paper — a verbal "we agreed it between ourselves" is very hard to prove afterwards.

Frequently asked questions

Am I guaranteed to get my advance payment back? If it was a zadatek, probably not — that is exactly what it's for: a penalty for pulling out. If it was a zaliczka, then as a rule yes, though the business may deduct its genuine costs. It all depends on the contract and the evidence.

How do I prove it was a zaliczka and not a zadatek if the contract doesn't say? You need to point to what the parties actually intended. A court will look at the whole context — the nature of the service, the amount, and industry custom. If the contract is silent, courts tend to lean towards treating the payment as a zaliczka.

What if I booked a six-month service, paid an advance, and pulled out after one month? The company is entitled to keep the portion of the advance that covers its genuine costs for that first month, and refund the rest. Working out the figure can be contentious — it's best backed up with emails and a clear paper trail.

Does the 14-day right of withdrawal apply to home renovations too? Only if you arranged the renovation online or without visiting the contractor in person (an online quote, say). If you went to the contractor's premises yourself and signed there, the 14-day period usually doesn't apply. And once work has started with your express agreement, the right to withdraw lapses anyway.

Can I claim compensation on top of getting my deposit or advance payment back? Yes — if the company failed to perform the contract, you can claim both the refund AND compensation for your losses (the cost of hiring someone else, wasted time, any losses you can prove). But you do need to prove them.

What are the time limits for bringing a claim to court? Claims arising from a contract for a specific result (umowa o dzieło) can be brought within 2 years of delivery of the work (Article 646 of the Civil Code). Other claims generally have a 6-year limitation period from when the claim arose (Article 118 of the Civil Code), unless the law says otherwise.

Checklist: step by step

• [ ] Read the contract carefully and check whether it refers to a zadatek or a zaliczka
• [ ] Check what the contract actually covers (a service, renovation, hire) — this affects the time limits
• [ ] If the work wasn't done, send a formal request to perform, with a deadline (2–3 weeks)
• [ ] If there's no response, send a demand for payment (refund plus compensation, if relevant)
• [ ] Gather all the evidence: the contract, proof of payment, correspondence, photos
• [ ] If the sum is large or the contract complex, get advice from a lawyer
• [ ] Consider mediation before going to court
• [ ] If you do go to court, prepare a clear set of documents and a timeline of events

Related articles: - A company didn't deliver the service despite being paid — how do you get your money back? - Service delivered not as agreed — how to complain, step by step - Company ignoring your complaint — when to escalate to a formal demand for payment? - How to build an evidence pack for a dispute with a company