This article is for owners of a JDG (jednoosobowa działalność gospodarcza, the Polish sole proprietorship) who are exempt from VAT and whose sales for the year have approached 240 000 zł or already crossed this threshold. In short: the exemption is lost on the sale with which you exceeded the limit, and that sale is already subject to VAT in full. VAT-R must be filed before the day of that sale, and from that month you file a JPK_V7M every month.
The general rules of the exemption, including who is not entitled to it at all, are described in the article the VAT exemption limit of 240 000 zł. Here we deal with what to do at the moment the limit is exceeded.
From which sale VAT applies
Under art. 113 ust. 5 of the VAT Act, the exemption “ceases to apply starting from the transaction by which this amount is exceeded”. The Ministry of Finance explains: the whole transaction on which the limit is exceeded is taxed, not only the part above 240 000 zł. Sales before it, including in the same month, remain exempt and do not need to be corrected. All sales after it carry VAT.
The limit is counted from 1 January on the total of sales without VAT. The exemption works only if the threshold has not been exceeded in either the previous or the current year.
Which sales count towards the limit
The limit includes sales of goods and services within Poland, exports and intra-Community supplies of goods. The following are not counted:
- the sale of fixed assets and intangible assets that you depreciate;
- sales exempt under art. 43 ust. 1 (for example some medical and educational services), except real estate transactions and certain financial and insurance services, if they are not ancillary;
- distance sales of goods to other EU countries that are subject to VAT outside Poland.
Services for firms from other countries, if under the VAT rules their place of supply is abroad, are not included in the limit either: they are not sales within Poland. On the other hand, they require VAT-UE registration, regardless of the limit.
The first year: a proportional limit
If the JDG was registered during the year, the limit is reduced in proportion to the days of activity: 240 000 zł × the number of days from the start of activity to 31 December / 365. An example from biznes.gov.pl: a start on 2 May 2026 gives 244 days and a limit of about 160 438 zł. Many people count the full 240 000 zł and exceed the threshold without noticing.
When to file VAT-R
Art. 96 ust. 5 requires VAT-R to be filed before the day on which you lose the right to the exemption, that is before the day of the sale with which you will exceed the limit. If you are already registered as a podatnik VAT zwolniony (VAT-exempt taxpayer), an update of the same VAT-R is filed. So it is better to count the limit in advance: when the amount left to the threshold is that of one or two ordinary invoices, it is time to file VAT-R.
If the excess is noticed later, VAT-R is filed immediately. VAT on the sale on which the limit was exceeded and on all subsequent ones is payable in any case. And the deduction of VAT on purchases, under art. 88 ust. 4, is available only to those registered as a czynny podatnik VAT (active VAT payer).
Invoices: what to correct
- The invoice for the sale with which the limit is exceeded is already issued with VAT. If it went out marked as exempt, a faktura korygująca (corrective invoice) is issued.
- If the price has been firmly agreed with the client, VAT is calculated from within it: at the 23% rate this is 23/123 of the amount. With a VAT-registered client you can agree to add the tax on top: they will deduct it.
- KSeF: until 31 December 2026, invoices for firms can be issued outside the system as long as their total for the month is no more than 10 000 zł including VAT. With VAT the same work gives a larger amount, and the limit runs out sooner. Details in the article KSeF for a JDG without VAT.
- After registration you appear on the biała lista (white list of VAT payers) as a czynny podatnik VAT, together with the account numbers from CEIDG. Business clients check it before large payments.
JPK_V7M and deduction on earlier purchases
The first JPK_V7M is filed for the month in which the limit was exceeded, by the 25th day of the following month, together with payment of the VAT. For the first 12 months after registration as a czynny podatnik, reporting is monthly only; the quarterly JPK_V7K is not available in this period.
Under art. 91 ust. 7d, the VAT on goods bought during the exemption and not sold by the day of the change (for example goods in stock) can be adjusted in the return for that period. For fixed assets worth more than 15 000 zł the adjustment is made in parts over the adjustment period (art. 91 ust. 7a). You need invoices with VAT for these purchases.
And the cash register?
The cash register follows its own rules: everything depends on sales to private individuals and on the type of activity. The exemption by turnover (20 000 zł of sales to private individuals a year) does not depend on your VAT status. VAT registration by itself neither switches the cash register obligation on nor off, but with sales to private individuals this limit is worth checking separately.
Example with figures
A hypothetical example, not a client case. A JDG provides services to firms, the VAT rate is 23%, all sales are under the exemption.
- By 14 October 2026, sales since the start of the year total 236 000 zł, including invoices of 2 and 9 October. They remain without VAT.
- On 15 October an invoice for 6 150 zł is issued at a fixed price. Without VAT this is 5 000 zł, VAT 1 150 zł. 236 000 + 5 000 = 241 000 zł; the limit is exceeded by this sale, and it is taxed in full.
- VAT-R should have been filed before 15 October. The JPK_V7M for October is filed by 25 November 2026: payable 1 150 zł minus VAT on purchases since registration.
- November and December: all sales with VAT, monthly reports. In 2027 there is no exemption. You can return to it no earlier than one year after the end of the year in which it was lost, that is from 2028.
Frequently asked questions
Is the amount with or without VAT counted towards the limit?
Without VAT. While you are exempt, there is no VAT in your sales, so it is simply the total of invoices and receipts. On the sale that exceeds the limit, the limit is compared with the amount without tax.
Can I split a large invoice into two so that the first stays without VAT?
This changes only the invoice on which the limit is exceeded. As soon as total sales have passed 240 000 zł, the exemption is lost, and all subsequent sales are taxed.
The excess was noticed a month later. What should I do?
File VAT-R immediately, correct the invoices from the date of the excess, file the JPK_V7M for the missed month and pay the outstanding VAT with interest. Deduction on purchases is available only after registration as a czynny podatnik.
Can I return to the exemption if sales fall next year?
Yes, but no earlier than one year after the end of the year in which the exemption was lost. If you lost it in 2026, you can return from 2028.
We count the limit against your sales month by month, file VAT-R and handle the JPK_V7M. More on the page VAT registration. The cost of bookkeeping for a VAT payer is shown by the calculator on this page.
Checked as of 5 October 2026. This is general information, not tax advice.
Sources: Podatki.gov.pl: zwolnienie podmiotowe od VAT, Podatki.gov.pl: zwolnienia podmiotowe, Biznes.gov.pl: kto musi płacić VAT.
