From 2026, taxpayers whose sales value in the previous tax year did not exceed 240,000 PLN can benefit from the subjective exemption. The previous limit of 200,000 PLN has been raised by 40,000 PLN, which means greater flexibility, especially for the smallest companies and individuals running sole proprietorships.
Who is this good news for?
- Micro-enterprises, freelancers, and sole proprietors who have been "hovering" around the 200,000 PLN limit gain more room for development without the need to enter VAT.
- Taxpayers who exceeded 200,000 PLN in 2025 but did not exceed 240,000 PLN can take advantage of the exemption in 2026 – often without the need to wait a year to return to the exempt status after submitting the appropriate VAT-R update.
- The increased limit also applies to foreign entities using the SME procedure in Poland, as long as they meet the exemption conditions.
What does this mean for our clients?
- The possibility of remaining outside VAT with higher revenues
If your sales in 2025 did not exceed 240,000 PLN, in 2026 it is possible to benefit from the subjective exemption – even if you exceeded the previous threshold of 200,000 PLN. This allows time for safely increasing sales without the obligation to charge VAT and submit VAT returns. - The need to monitor turnover during the year
The exemption is still lost after exceeding the limit during the year – after exceeding 240,000 PLN, you must register as an active VAT taxpayer and tax subsequent transactions. Therefore, it is particularly important to continuously monitor revenues (e.g., monthly sales reports) and plan larger contracts. - Decision: to remain exempt or enter VAT?
The increased limit does not always mean that it is beneficial to remain outside VAT – companies working mainly with VAT taxpayers, incurring high VAT costs, may benefit from being active taxpayers. In many industries (B2C, services for consumers), maintaining the exemption will still be cost-effective.
Our recommendations for micro-entrepreneurs
- We will check your turnover for 2025 and confirm whether you meet the conditions for using the subjective exemption in 2026.
- We will analyze what is more beneficial: to remain exempt or to switch to the status of an active VAT taxpayer (considering cost and customer structure).
- If necessary, we will prepare and submit a VAT-R update (return to exemption or VAT registration), and we will also adapt the sales records to the new limits.
If you would like to check how the new limit affects your specific situation (e.g., turnover forecasts for 2026), please contact our office – we will prepare an individual analysis and recommendation for the form of VAT settlements.