🔹 Introduction

 Not every sole proprietorship (JDG) needs to register for VAT right away. In Poland, there is a threshold for exemption from VAT and a list of sectors and situations in which registration for VAT is mandatory regardless of turnover. It's important to know when you are obligated to register and when you can operate as a non-VAT taxpayer.
 

🔸 1. VAT exemption – up to 200,000 PLN per year

As a JDG, you do not have to register for VAT if: 

• Your turnover from the sale of goods and services does not exceed 200,000 PLN gross per year,
• You do not provide services or sell goods subject to mandatory registration (exceptions - see below),
• You do not conduct foreign activities with VAT-UE.

📌 If you start a business during the year, the limit is calculated proportionally:
 200,000 PLN × (number of days until the end of the year / 365)
 

🔸 2. When is registration for VAT mandatory?

You must register as an active VAT taxpayer if:

✅ You exceed the limit of 200,000 PLN in turnover

• You must register before making a sale that exceeds this threshold.
• Registration is done on the VAT-R form.

✅ You provide specific services or sell goods that exclude exemption

You must register from the first sale if you conduct:
Legal services - YES
Consulting services (e.g., tax, marketing) - YES
Jewelry services - YES
Trade in products made of precious metals, alcohol, cigarettes, perfumes - YES
Online sales (e.g., Allegro, Amazon) – above the limit - YES

📌 The list is in Article 113, section 13 of the VAT Act.
 

🔸 3. Voluntary VAT registration – when is it worth it?

You can register for VAT voluntarily, even if you are using the exemption, when:

• Your clients are companies and institutions (B2B) that expect invoices with VAT,
• You have a lot of VAT costs (e.g., investments, leasing, equipment purchases) that you want to deduct,
• You sell abroad (e.g., to the EU) – then VAT-UE registration is necessary,
• You plan to cooperate with foreign entities (e.g., Meta, Google, Amazon) – they require NIP-UE and active VAT.

📌 Voluntary VAT = additional obligations: JPK_V7, declarations, deadlines.
 

🔸 4. How to register for VAT?

✅ Step by step:

1. Complete the VAT-R form – preferably online via ePUAP or in CEIDG,
2. Submit it before the start of VAT liable activities,
3. In some cases, the office may request additional documents (e.g., lease agreement, commercial agreements, confirmation of the business account),
4. The office may conduct verification or a compliance visit,
5. After approval, you will receive the status of "active VAT taxpayer" – you can check this in the white list of VAT taxpayers.

📌 Since 2022, VAT registration is free (the fee of 170 PLN no longer applies).
 
 

🔸 5. What is the difference between active VAT and exempt VAT?

Issues invoices with VAT | ✅ Yes | ❌ No
Submits JPK_V7 | ✅ Yes | ❌ No
Deducts VAT from costs | ✅ Yes | ❌ No
Requires VAT records | ✅ Yes | 🔶 Limited or simplified
Visible on the white list | ✅ Yes | ❌ No

📚 Legal basis 

• Act on Goods and Services Tax (VAT) – article 113, article 96
• Regulation of the Minister of Finance on VAT exemptions
• Act on CEIDG and the Law on Entrepreneurs
• Tax Clarifications by the Ministry of Finance

✏️ Summary

• You sell only B2B, turnover < 200,000 PLN - ❌ Not mandatory
• You exceed 200,000 PLN per year - ✅ Mandatory
• You conduct advisory, jewelry, etc. activities - ✅ Mandatory
• You want to deduct VAT from costs - ✅ Voluntary
• You sell on Amazon / Meta / abroad | ✅ VAT and VAT-UE