On 3 July 2025 the President signed the Act of June 24, 2025 amending the Act on the Income Tax goods and services. The aim of this Act is to increase the limit of the subjective exemption from VAT from the current PLN 200,000 to PLN 240,000.
This means that if your annual sales do not exceed the new amount, your company will still be able to benefit from VAT exemption, which involves fewer formalities and no need to settle this tax.
It is worth paying attention to an important transitional provision (Article 2). Namely, if in 2025 the total sales value of an entity with its registered office in Poland was in the range above PLN 200,000 but did not exceed PLN 240,000, then from 1 January 2026 this entity will also be able to benefit from the VAT exemption.
The same applies to entrepreneurs who started their business in 2025 and whose proportional sales were within the same range mentioned above.
From 1 January 2025, the subjective exemption from VAT is also available to entrepreneurs with their registered office in other EU Member States.
The new transitional provision will also apply to them, which will make it easier for them to do business in Poland.
President signed the Act was on 3 July 2025 and it will enter into force on 1 January 2026.
Raising the VAT exemption limit is primarily real support for small and medium-sized enterprises. For many companies, this means the possibility of further development without the burden of VAT settlement, which translates into saving time and resources. This increases the competitiveness of companies on the market. However, there is also a downside to using the VAT exemption, namely the lack of the possibility of deducting VAT from your purchases.
We encourage you to consult with our tax advisors to ensure that your company is taking full advantage of the opportunities brought by changes in tax regulations.
Check out our tax advisory services: Tax Advisory for Businesses in Poland
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