VAT Exemption Threshold Raised to PLN 240,000: Who Benefits in 2026
From January 1, 2026, micro-entrepreneurs can now operate without VAT registration up to PLN 240,000 annual turnover—an increase from PLN 200,000—reducing administrative burden for small-scale freelancers and sole traders.
The Change
Starting January 1, 2026, the VAT exemption threshold is increased from PLN 200,000 to PLN 240,000 in annual turnover. This allows more micro-entrepreneurs to avoid VAT registration in Poland and reduce administrative burdens.
Who Qualifies
Taxpayers whose turnover did not exceed the specific threshold in the previous fiscal year (excluding VAT) are exempt from VAT. The change applies to businesses with registered offices in Poland or other EU Member States (provided additional requirements are met).
Practical Impact
The PLN 40,000 increase in the exemption threshold benefits freelancers, consultants, and small traders who previously had to register for VAT once they hit PLN 200,000. For instance, an IT contractor earning PLN 15,000 monthly (PLN 180,000 annually) previously risked crossing into VAT territory; now, they have a comfortable cushion up to PLN 240,000 before VAT becomes mandatory.
VAT registration, while offering the advantage of reclaiming VAT on business purchases, also creates significant compliance obligations: monthly JPK_V7 filings, invoice numbering requirements, and detailed VAT settlement records. By raising the exemption threshold, Poland provides relief to emerging entrepreneurs and those with modest income levels.
What This Means for You
If you are a foreigner running a JDG (sole proprietorship) or freelancing in Poland, check your annual turnover against the new PLN 240,000 limit. If you're below it, you can remain VAT-exempt, which simplifies your invoicing and eliminates complex monthly VAT filings. However, if you choose to register voluntarily (for example, to recover VAT on equipment purchases), you can do so. If you're between PLN 200,000–PLN 240,000 in turnover, you now have breathing room before mandatory VAT registration kicks in—reassess whether staying unregistered or going voluntary makes sense based on your business expenses.
Sources
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