Registering as a VAT Taxpayer in Poland — 2026 Guide

VAT, or value-added tax, is a compulsory tax imposed on most goods and services. Under the VAT system, the tax is levied at each stage of production and sale, with taxpayers acting as intermediaries in collecting the tax and remitting it to the state budget. There are different VAT rates, including standard, reduced and zero rates, which govern the taxation of different types of goods and services.

Who must register as a VAT taxpayer?

Mandatory registration as a VAT taxpayer in Poland is primarily regulated by the Act of 11 March 2004 on Value Added Tax. According to this law, the obligation to register depends mainly on the turnover threshold reached.

In 2026, the VAT exemption threshold for small businesses in Poland increased from PLN 200,000 to PLN 240,000. Entrepreneurs whose annual sales do not exceed PLN 240,000 are not required to register or pay VAT. The following turnover rules therefore apply in 2026:

• General turnover threshold: For most taxpayers, the obligation to register as a VAT taxpayer arises once turnover exceeds PLN 240,000 in the previous calendar year (Article 113(1) of the VAT Act, as amended from 1 January 2026).
• Activities requiring registration regardless of turnover: In certain sectors — including trade in second-hand cars, scrap metal, waste, precious metals, certain financial services, and the sale of excise goods — VAT registration is mandatory regardless of turnover due to a higher risk of tax fraud or the nature of the transactions involved.

For existing businesses, if 2025 sales exceeded PLN 200,000 but remained below PLN 240,000, the VAT exemption can be applied from 1 January 2026. For new businesses that started in 2025, the threshold is calculated proportionally based on the number of days of activity.

It is also important to note exceptions that may affect mandatory VAT registration:

• Intra-Community transactions: If a taxpayer plans to carry out intra-Community transactions — trade in goods between EU countries — there may be an obligation to register for VAT regardless of the turnover achieved, due to the need to monitor the movement of goods within the EU and tax these transactions correctly.
• Imports and exports: As with intra-Community transactions, carrying out imports or exports may require VAT registration even if the general turnover threshold has not been exceeded.

Failure to register on time or when legally obliged can lead to financial penalties and other legal consequences. It is therefore advisable to keep up to date with changes in tax legislation and to consult a professional such as a tax advisor or accountant.

Taxpayer exempt from VAT

A taxpayer exempt from VAT is an entrepreneur who is not obliged to charge or remit VAT on their goods and services. The main grounds for VAT exemption in Poland are:

• Low turnover: Entrepreneurs whose annual sales do not exceed PLN 240,000 (the threshold applicable from 1 January 2026) may benefit from the subjective VAT exemption.
• Nature of the activity: Certain types of activity are exempt from VAT due to their social or public purpose, without any turnover condition. These include educational services, medical services, childcare, charitable activities, and some cultural activities.
• Small-scale economic activity: Where economic activity is conducted on a very small scale — particularly as a supplementary rather than primary source of income — exemption may also be possible.

Taxpayers exempt from VAT are not entitled to deduct input VAT on their purchases. They are also not required to file VAT returns or charge VAT on their sales. However, they lose the benefit of recovering VAT on costs, which may affect operating expenses for businesses with significant input costs.

Optional registration for VAT

If you have not exceeded the mandatory registration threshold, voluntary VAT registration remains available and can be advantageous in many situations. The main reasons to consider voluntary registration include:

• Deduction of input VAT: VAT-registered businesses can deduct the VAT paid on purchased goods and services, reducing their effective costs. For businesses that invest regularly in goods and services, this can represent significant savings.
• Working with larger contractors: Many large corporations and public institutions require their suppliers to be VAT-registered. Registration can enhance credibility and open access to tenders and larger contracts.
• Planned business growth: Registering before reaching the mandatory threshold provides greater flexibility and avoids the need for a rushed registration when turnover approaches the limit.
• Improved financial control: VAT registration requires more comprehensive financial recording, which can support better internal management and financial oversight.

VAT and transactions with EU contractors

When planning commercial transactions with counterparties from other EU Member States, it is important to understand the rules governing intra-Community supplies and acquisitions. In such cases, registration as an EU VAT taxpayer is generally required — particularly in the context of intra-Community acquisition of goods and intra-Community supply of goods.

It is also worth noting that Poland’s mandatory e-invoicing system — KSeF (Krajowy System e-Faktur) — applies to all VAT-registered businesses from April 2026, requiring B2B invoices to be issued through the national platform. This is separate from the VAT registration threshold and applies regardless of turnover.

The procedures related to intra-Community transactions can be complex. We are happy to assist you in ensuring correct and compliant VAT settlement in the context of EU trade.