Tax limits in Poland 2023: VAT, CIT, PIT

February 20, 2023

From January 1, 2023, there are new tax limits in Poland. We have sorted out the limits for: quarterly VAT, “small taxpayer” (CIT and PIT), lump sum on registered income and 9% CIT. Pay attention to whether the amounts are net or gross. We have also prepared conversion of the limits expressed in euro into zlotys.

Quarterly VAT

The rule is to pay VAT in monthly settlement periods. However, the VAT Act provides for cases where VAT may be paid on a quarterly basis. The right to pay VAT on a quarterly basis is vested in taxpayers with the status of the so-called small VAT payer. The status of the so-called small VAT payer is linked to the value of turnover from the previous year and currently amounts to EUR 1.2 million. As a consequence, taxpayers whose turnover (including the amount of tax) in 2022 did not exceed PLN 5,793,000 may pay VAT quarterly in 2023. Importantly, the quarterly payment can be used only after 12 months from the date of registration for VAT.

Important! This limit may change in the near future. Currently, work is underway on further amendments to the VAT Act, under the so-called Slim VAT package. Changes in the regulations are to lead to an increase in the turnover limit entitling to pay VAT in quarterly periods to EUR 2,000,000.

„Small taxpayer” (CIT and PIT)

The limit for a “small taxpayer” in both PIT and CIT amounts to EUR 2 million. In order to apply the provisions relating to small taxpayers in 2023, the income in 2022 could not exceed PLN 9,654,000.

Taxpayers with the status of the so-called “small taxpayer” receive, among others, the right to quarterly advance payments for income tax, as well as one-time depreciation (up to EUR 50,000).

Lump sum on registered income

A lump sum on registered income is one of the simplest forms of taxation of business activity. The possibility of settling based on this form of taxation depends, among others, on: the amount of income that was achieved in the previous tax year – for 2023 this limit is EUR 2 million. For the conversion, we use the exchange rate from the first business day of October 2022, which gives us the amount of PLN 9,654,400.

Important! The lump sum limit on registered income does not apply to new entrepreneurs.

9% CIT

The application of the preferential CIT rate of 9% depends on the income earned in the previous year and the income earned in the current tax year: 

  • Gross revenue from the previous year may not exceed EUR 2 million – PLN 9,654,000 in 2022,
  • Net revenues in the tax year must not exceed EUR 2 million – PLN 9,357,000 in 2023.

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