Registration as a VAT payer - when to register

Who should register as a VAT payer

The obligation to register as a VAT payer occurs if:

1. The value of sales in the previous year exceeded the amount of PLN 200 thousand. PLN
2. Goods or services listed in the VAT Act are sold.

Up to said sales value:

• The amount of tax is not included
• Deliveries of goods and rendered services included in Art. 113 paragraph. 2 of the VAT Act (including intra-Community supply of goods, mail order sales from the payer’s country, mail order sales within the payer’s country).

If the activity begins during the tax year, the sales value limit is calculated in proportion to the number of months remaining until the end of the calendar year. If the sale value exceeds the amount of PLN 200,000, PLN, the exemption does not take place starting from the activity in which this amount was exceeded.

Obligation to register as a VAT payer in other cases

The obligation to register as a VAT payer also occurs in other cases, when:

• Goods listed in Annex 12 to the Act on Value Added Tax (e.g. precious metal scrap, coins) are delivered,
• Goods subject to excise duty are delivered, with the exception of: electricity (CN 2716 00 00), tobacco products of passenger cars, other than those listed in point (a). e, classified as fixed assets subject to depreciation,
• Buildings, structures or their parts are constructed in the cases referred to in Art. 43 sec. 1 point 10 lit. a and b,
• Construction sites are delivered,
• New means of transport are delivered,
• Goods are delivered in connection with the conclusion of a distance contract (regarding cosmetic and toilet preparations, computers, electronic and optical products, electrical and non-electrical household appliances as well as machines and devices that have not been classified),
• Parts for motor vehicles and motorcycles are supplied (for wholesale and retail deliveries).
• Legal services are provided,
• Advisory services, with the exception of agricultural consultancy related to the cultivation and breeding of plants and animal breeding and breeding, as well as related to the preparation of a development plan and modernization of a farm,
• Jewelery services,
• Debt collection services, including factoring.

When you are exempt from registering as a VAT payer

1. You are exempt from registration as a VAT payer, irrespective of the value of sale, if you only perform the activities listed in Art. 43 sec. 1 of the Value Added Tax Act (e.g. medical services, care for the disabled).
2. If the sales limit of PLN 200,000 is not exceeded, PLN or when the activity begins during the year and in relation to the limit set in proportion to the number of months in the year in which it will be conducted.

VAT exemption means that the company does not have to submit settlement declarations, does not settle the tax due on sales to the tax office and has no right to deduct (return) input tax.