Who has to pay VAT: the PLN 240,000 exemption, registration and rates
The small business VAT exemption in 2026, the activities that cannot use it, voluntary registration, VAT-R and VAT-UE, VAT rates, JPK_V7M and JPK_V7K, and the KSeF dates.
Updated
Every business is a VAT taxpayer, but not every business has to charge VAT. A small business can use the subjective exemption (zwolnienie podmiotowe) if its sales stay within the limit and its activity is not excluded from the exemption.
The exemption in 2026
- Limit: PLN 240,000 of net sales in the previous year and in the current year. From 1 January 2026 the limit rose from PLN 200,000.
- A business starting during the year counts the limit in proportion to its period of activity in that year.
- The limit does not include, among others, most sales exempt by type (for example medical or educational services) or sales of fixed assets. Financial and insurance services and real estate transactions do count, unless they are only ancillary.
- The exemption ends with the sale that takes you over the limit. You charge VAT from that sale on, so file the VAT-R beforehand.
Who cannot use the exemption
Regardless of turnover, the exemption is not available to a business that:
- provides legal services, consulting services (except agricultural consulting), jewellery services or debt collection, including factoring;
- sells, among others, excise goods (with exceptions), new means of transport, building land, products made of precious metals, car parts;
- sells cosmetics, electronics, electrical equipment and some machinery online or at a distance.
The full list is in art. 113(13) of the VAT Act and in annex 12.
Active VAT payer
You can register for VAT voluntarily, even within the limit. This makes sense when you sell mainly to businesses that deduct VAT, or when you have large purchases with VAT. After giving up the exemption you can return to it at the earliest a year after the end of the year in which you gave it up.
- VAT-R: file it at the latest on the day before your first sale with VAT, with the CEIDG application or at the tax office.
- VAT-UE: register before your first intra-EU transaction. This also applies to a VAT-exempt business that buys services from businesses in other EU countries (for example advertising or software) or provides services to EU businesses.
You can check the VAT status of any NIP in the VAT payer register (white list).
VAT rates
| Rate | When |
|---|---|
| 23% | the standard rate |
| 8% | among others some construction services in residential housing, catering, hotel services, some foods |
| 5% | among others books and some foods |
| 0% | among others intra-EU supplies of goods and exports, when the conditions are met |
| zw | exempt sales: the subjective exemption or an exemption by type |
| np | sales outside Polish VAT, for example services to businesses in other countries |
Check the rate for a specific product or service in the VAT Act and its annexes. If in doubt, you can apply for a binding rate information (WIS).
Filing: JPK_V7M or JPK_V7K
An active VAT payer files the JPK_V7 with the return and the records by the 25th of the following month. A small taxpayer can file quarterly (JPK_V7K), but not in the first 12 months as an active VAT payer. See JPK_V7: how Norman prepares and files it.
KSeF
From 2026 invoices to businesses are issued in the National e-Invoice System (KSeF): from 1 February 2026 for the largest businesses, from 1 April 2026 for everyone else. Until 31 December 2026 you can issue invoices outside KSeF as long as their total including VAT does not exceed PLN 10,000 a month. See Sending invoices to KSeF.
In Norman
You set your VAT status and JPK frequency under Account → Taxes, section VAT: see Tax settings. Rates on invoices are covered in VAT on invoices, and the VAT-UE in VAT-UE and VAT-UEK.
This is general information on the 2026 rules. Check with an accountant or a tax adviser whether you can use the exemption.
Sources: VAT Act, art. 41, 96, 97, 99, 113, 145l, 145m and 146ef, podatki.gov.pl: VAT, VAT payer register, KSeF.