Unregistered Business: No Registration Needed, But VAT Still Applies and Causes Problems

• Unregistered business activity in Poland does not require formal registration, but VAT obligations still apply.
• Many people, such as employees, students, the unemployed, and retirees, use unregistered business to earn extra income due to fewer formalities.
• Limited formal requirements can lead to problems, as individuals may neglect necessary tax settlements, including VAT, fiscal cash registers, and KSeF.
• VAT exemption for private teaching applies only to education that matches official school or university curricula; private music lessons and swimming lessons do not qualify.
• Failure to understand and fulfill tax obligations can result in legal and financial troubles for those conducting unregistered business activities.

Source: ksiegowosc.infor.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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