Polish is slightly abrasive and scrubs off a tiny layer of old paint and dirt and stuff, leaving new paintwork exposed. Many polishes also form a layer over this newly exposed paint to protect it.
Wax just forms a protective coat over what is there already, so waxing a faded or dirty car is pointless.
As far as i can remember!!
Wax just seals the paintwork.
Polish can remove lite scratches and renovate old looking paintwork.
Hope this helps!
Richard.