From January 1st, 2026, the subjective VAT exemption limit will be increased from the current 200,000 PLN to 240,000 PLN per year. This is an important change, especially for micro-entrepreneurs and freelancers.
For whom?
• Micro and small entrepreneurs (including sole proprietors),
• People providing local and specialist services,
• Businesses whose annual turnover does not exceed the new limit.
Benefits of VAT exemption:
• No obligation to register as a VAT payer,
• Fewer formalities and simpler accounting,
• Potentially more competitive prices for customers.
Transitional provisions:
In 2025, if an entrepreneur exceeds 200,000 PLN in turnover but does not exceed the new limit of 240,000 PLN, they do not need to register for VAT. The exemption remains in force until the end of 2025, and the new regulations come into force in January 2026.
Exclusions from the exemption:
Companies operating in certain industries such as legal services, trading in jewelry products, or selling antiques will still not be able to benefit from the VAT exemption. For these businesses, the obligation to register as an active VAT payer remains regardless of turnover.
How to prepare:
• Regularly monitor turnover in 2025,
• Analyze the benefits of staying outside the VAT system,
• Consult with an accounting or tax advisor.
As an accounting firm, we support entrepreneurs in analyzing and implementing changes in regulations.
Let’s talk
At ACS, we turn regulatory complexity into practical solutions. Changes to the VAT threshold are an opportunity to simplify your business provided you are properly prepared.
Contact our experts to learn how our tax compliance services can help you increase efficiency and reduce risk.
