VAT exemption up to PLN 200,000 — rules

The subjective VAT exemption capped at PLN 200,000 of annual sales is one of the most important simplifications for small businesses in Poland. It lets you avoid registering as an active VAT payer and cuts out unnecessary formalities until the threshold is hit. In 2026 the rules still follow art. 113 of the VAT Act.

Who qualifies and what is excluded

The exemption is available to entrepreneurs whose sales value in the previous year did not exceed PLN 200,000 (net). When business starts mid-year, the limit is calculated pro rata to the number of days in operation. Sales of fixed assets and intra-Community supplies (WDT), among others, are not counted toward the limit.

Important: the exemption does not cover every industry. It is not available to providers of advisory, legal or jewellery services, debt-collection services, or sellers of certain excise goods. Once the limit is exceeded, the business loses the exemption from the transaction that broke the threshold — from that sale VAT must be charged and VAT-R filed within 7 days.

• Cap: PLN 200,000 net annual sales (art. 113(1) of the VAT Act).
• Starting mid-year — the limit is prorated to the number of active days.
• Excluded sectors: advisory, legal, jewellery and excise goods.
• No right to deduct input VAT on business purchases.
• Above the cap — file VAT-R and charge VAT from the triggering transaction.

Rates and thresholds are updated annually; consult an accountant before making a decision.

Approaching PLN 200,000? We will plan your VAT registration.