VAT changes. There is a project to increase the limit of tax exemption

Draft amendment to the Act increasing the limit of VAT exemption from 200,000 PLN up to 240 thousand PLN published on Friday in the list of legislative works of the Council of Ministers.

Currently – as reminded – the VAT Act gives the opportunity to exempt from goods and services tax to entrepreneurs, whose sales value did not exceed PLN 200,000 in the previous and current tax year. zloty. At the same time, the VAT Act from January 1, 2025 gives the opportunity to take advantage of this exemption to taxpayers without the headquarters of economic activity in Poland (taking into account the national limit of PLN 200,000 and an additional EU limit set at EUR 100,000).

“Considering that the current limit of PLN 200 has not been increased since 2017, fewer and fewer companies are entitled to use the exemption in VAT. This means that entrepreneurs exceed the applicable limit much faster and are required to register as active VAT taxpayers” – the justification was written. It was added that the project was included in the deregulation package prepared with the participation of entrepreneurs. His introduction was previously announced by Deputy Minister of Finance Jarosław Neneman.

It was noted that the changes are aimed at facilitating small enterprises to run a business, removing certain administrative obligations from VAT.

The increased limit of subjective exemption in VAT will apply to taxpayers benefiting from the exemption in Poland (both those having the headquarters of economic activity in the territory of the country, as well as those having their registered office in other EU Member States who will benefit from VAT exemption in Poland). (PAP)

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