More Companies Will Avoid VAT, but Threshold Remains Low

The subjective VAT exemption limit will rise from PLN 200,000 to PLN 240,000 in 2025, benefiting about 19,000 entrepreneurs and allowing small businesses to avoid mandatory VAT registration longer.

Experts view the increase positively but suggest the limit remains low given inflation; higher thresholds could reduce artificial VAT-driven purchases and ease compliance burdens on small entrepreneurs.

The exemption helps consumers by potentially lowering prices on goods and services, as VAT is ultimately borne by end-users; raising the limit can reduce tax costs on non-exempt services.

Some sectors, including legal consultancy, jewelry, and excise goods, remain ineligible for the exemption; further tax limits like leasing thresholds are also outdated and may require future adjustments.