The president signed a key bill. The VAT exemption limit will increase to PLN 240 thousand!

President Andrzej Duda signed an amendment to the taxation on Goods and Services Act, which introduces a revolutionary change for hundreds of thousands of tiny companies in Poland. Under the fresh regulations, the gross limit for VAT exemption will be increased from PLN 200 1000 to PLN 240 1000 per year. This is simply a strategical decision by the government to reduce bureaucracy and support the smallest economical operators. The fresh law, which forms part of a larger deregulation package, will enter into force on 1 January 2026.

For thousands of micro-entrepreneurs, freelancers and tiny service providers, this is groundbreaking information. expanding the threshold means that they will be able to make their activities without fear of abrupt entry into a complex VAT system. In practice it is little formal, little papers and more time to run a business. The Act besides contains a key transitional provision that protects business interests as early as 2025.

Key changes in regulations. What do you request to know?

The most crucial information coming from a bill signed by the president is to increase the yearly sales limit, which exempts the entrepreneur from being an active VAT taxable person. The existing threshold of PLN 200,000will be replaced by a fresh higher amount – PLN 240 000. This amendment will apply from 1 January 2026.

What does this mean in practice for a tiny company? An entrepreneur whose yearly net gross (without tax) does not exceed that amount will not have to:

• Register with the taxation office as a VAT taxable individual (submission of VAT-R form).
• Charge and retreat VAT on the sale of their goods and services.
• Make monthly or quarterly declarations of JPK_V7.
• Keep detailed records of sales and purchases for VAT purposes.

This is simply a immense simplification that translates into real savings in time and money. Companies exempt from VAT do not gotta usage advanced accounting services related to the handling of this tax, which straight reduces operating costs.

Transitional provision for 2025. How does this work in practice?

The legislator has foreseen a very crucial transitional mechanism, which is crucial for entrepreneurs planning their finances for the coming months. The fresh regulations defend companies that will exceed the current limit in 2025 but will fit in the new.

How does it work? If during 2025 the value of your sales exceeds PLN 200 thousand, but will not exceed the fresh threshold of PLN 240 thousand, you will not lose the right to an entity exemption from VAT. This means that even after exceeding the current limit, you will not gotta registry immediately as a VAT taxable person. This solution gives companies a “security buffer” and allows them to prepare smoothly for fresh rules that will full apply from 2026.

In this way, entrepreneurs who are developing dynamically will not be “cursed” for expanding gross in the year before the improvement enters into force. It is simply a signal that the intent of the change is to actually support, not to make legal traps.

Who will benefit most from expanding the VAT limit?

The fresh rules are aimed primarily at the smallest players on the market. The change will have the top impact on the financial and administrative situation of respective professional groups. The largest beneficiaries will be:

• Self-employed and freelancers: Graphicists, programmers, copywriters, translators, or virtual assistants who frequently balance at the border of the current threshold.
• Service microcompanies: tiny beauty, barbershops, craft workshops or cleaning companies, for which each additional administrative work is simply a dense burden.
• Small traders and creators: Those selling handicrafts, digital products or tiny online shops, which will be able to increase the scale of their activities without entering the VAT system.

So far many entrepreneurs have deliberately restricted improvement in order not to exceed the threshold of PLN 200 1000 and avoid bureaucracy. fresh higher limit removes this intellectual barrier and encourage further investment and increase revenue, which can bring affirmative results across the economy.

Why did the government decide to change?

Increasing the VAT exemption limit is not an accident. This is part of a broader government strategy, implemented under the so-called. Deregulation package. The main nonsubjective of these actions is to simplify the Polish legal and taxation strategy to make it more citizen-friendly and business-friendly.

According to the President's Office and the Ministry of Finance, the amendment is intended to accomplish respective key objectives. First, it's about reduction of administrative burdens for the smallest companies that frequently do not have staff or financial resources to handle complex regulations. Secondly, change is intended to stimulate tiny enterprise and facilitate business start. Finally, this is simply a consequence to rising inflation, which made the threshold of PLN 200 1000 actually lower than a fewer years ago.

The Ministry of Finance besides announced a wide-ranging information run that will aid entrepreneurs realize fresh rules and apply them correctly in practice. This gives certainty that the change will be implemented in a structured way.

New VAT limit since 2026. Summary and key dates

The signing of the bill by the president yet confirms the introduction of beneficial changes for tiny business. This is simply a concrete step towards reducing bureaucracy, which will affect hundreds of thousands of companies in Poland. Remember the most crucial information:

• New VAT exemption limit: 240 000 PLN per year.
• Entry into force: January 1, 2026.
• Transitional provision: In 2025 exceeding PLN 200 1000 (but not PLN 240 thousand) will not consequence in the failure of the exemption.
• Main beneficiaries: Self-employed, service micro-enterprises and tiny traders.

Entrepreneurs should already include these changes in their financial plans for the coming years. The higher limit gives greater freedom and opens fresh opportunities for improvement without fear of additional complicated taxation obligations.