More taxpayers will benefit from VAT preferences

The VAT sales threshold for small taxpayers will increase from 1.2 million euros to 2 million euros.
Approximately 40,000 entrepreneurs will have the opportunity to settle taxes on a quarterly basis and use the cash accounting method.
A small taxpayer will be defined as one whose sales value (including tax) did not exceed 2 million euros in the previous tax year.
The increased threshold aims to address payment bottlenecks and improve the economic situation for many entrepreneurs.
Small taxpayers can choose between cash and quarterly VAT settlements, with the option to switch to quarterly settlements after 12 months from VAT registration.
Specific conditions must be met, including written notification to the tax office and using the expression “”metoda kasowa”” (cash method) on invoices for cash accounting.
The right to deduct input tax for small taxpayers using cash accounting arises when payment is made for the goods and services.
The cash accounting method can only be abandoned after 12 months.
The changes provide more flexibility and benefits to taxpayers in their VAT settlements.