When is obligatory to register
as a VAT payer?
Are you planning on conducting business activity and wonder if you should register as a VAT payer?
Before taking the next step, find out in which situations you will be subject to VAT exemptions.
Are you a VAT payer?
In line with the Polish regulations, all entrepreneurs selling goods and services, exporting and importing goods in Poland and inside the EU are subject to VAT. They can be divided into active and exempt taxpayers. An active taxpayer must register as a VAT payer, submit declarations, keep records of goods and services, issue VAT invoices, and pay taxes.
An exempt taxpayer is an entrepreneur who can be exempt from VAT either on the account of sales volumes or on the account of specific products and services. However, there are certain requirements which they must meet, such as keeping simplified sales records and issuing invoices upon request.
A taxpayer is exempt from VAT when their annual sales do not exceed PLN 200,000. The exemption is then based on sales volumes. Entrepreneurs can benefit from it as soon as their business is set up. As long as they do not exceed their annual turnover threshold, they do not have to register as a VAT payer. The exemption can also be based on the specific products and services sold. Entrepreneurs can benefit from the latter if the economic activity they conduct is stipulated by Article 43 (1) of the Polish Tax on Goods and Services Act. More importantly, entrepreneurs entitled to this exemption cannot waive it. However, they are obliged to issue VAT invoices with an information on tax exemption.
When is it necessary to register as a VAT payer?
As stipulated by the VAT Act, there are instances when the entrepreneur is subject to VAT registration as soon as the business is set up. These instances include entrepreneurs who sell goods listed in Annex 12 to the VAT Act, excise goods (with exceptions), building land, parts of motor vehicles and motorcycles, new means of transport, as well as certain goods sold online – regardless of the annual sales value. Registration as a VAT payer is also obligatory when providing legal, advisory, jewellery and debt recovery services.
Our experts provide support with all aspects of VAT registration, do not hesitate to contact them should you have any questions or queries.