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From 2026: Higher VAT exemption threshold for small businesses in Poland

  • Writer: Paweł Gorzelec
    Paweł Gorzelec
  • Jul 18
  • 2 min read

Starting January 1, 2026, the threshold for the VAT exemption for small businesses in Poland will be increased from PLN 200,000 to PLN 240,000 in annual turnover. This change will benefit both continuing entrepreneurs and those starting a new business.

Who qualifies for the exemption?

Businesses with a registered office in Poland may apply the exemption if their sales did not exceed PLN 240,000 in the current or previous tax year.

The following are excluded from the turnover calculation:

  • VAT itself,

  • distance sales of goods within the EU and imports not subject to VAT in Poland,

  • sales of fixed assets and amortized intangible assets,

  • certain VAT-exempt transactions (e.g., insurance, real estate – unless considered auxiliary).

How does the threshold apply?

For existing businesses:If your 2025 sales exceed PLN 200,000 but stay below PLN 240,000 – you can apply the exemption from January 1, 2026.


For new businesses in 2025:The threshold is calculated proportionally. Example:Start date: May 9, 2025 → 237 days until year-end

New limit: PLN 240,000 / 365 × 237 = PLN 155,835.62

When is exemption not available?

Certain businesses must register for VAT regardless of turnover. This applies to those selling:

  • precious metals and jewelry,

  • excise goods (with exceptions),

  • new transport vehicles, buildings, or building land,

  • electronics, cosmetics, or car parts online.


Or providing services like:

  • legal advice,

  • consulting (except in agriculture),

  • jewelry services,

  • debt collection or factoring.

Opting in voluntarily

You can waive the exemption at any time and register as a VAT payer – useful if you plan large investments or want to deduct input VAT.

Legal basis:



 
 
 

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