VAT Exemption in Poland

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17.11.2009

 

The Polish Ministry of Finance decided to increase the VAT exemption limit, from the current PLN 50 000 (EUR 12 000) to PLN 150 000 (EUR 36 000)...

 

It will be applied gradually from 1 January 2010. During 2010 the limit amount will increase to PLN 100 000 and in 2011 reach PLN 150 000. Nowadays the VAT exemption limit in Poland is one of the lowest among the European Union countries.

 

The possibility of implementing the Law on Exemption of Value Added Tax is a significant advantage for the small businesses. As a result of a new regulation, businesses costs will reduce considerably. The employers, whose income is lower than the relevant annual exemption limits, are not obliged to keep accounts and neither to issue a VAT declaration.

 

According to the experts, it is a substantial support for the micro and small entrepreneurs, which will influence their business efficiency, even though it will lead to the Government’s revenue decrease.

 

Source: Gazeta Prawna