Service Business

Limits for small VAT payers over the years

The limits for small VAT payers are based on the average euro exchange rate on the first business day of October. Due to the different exchange rates of the euro in individual years, the limits for small taxpayers over the years are different.

Limits for small VAT payers in 2017

Maximum income (including tax) entitling to be a small taxpayer: the equivalent of EUR 1,200,000, converted into PLN.

Maximum income (including tax) for brokers and other persons providing similar services: the equivalent of EUR 45,000, converted into PLN.

The conversion of the amounts should be made according to the average euro exchange rate announced by the National Bank of Poland on the first working day of October of the previous tax year, rounded up to the nearest whole thousand.

Converted into PLN, in 2017 the limits for small VAT payers are:

1,200,000 × 4.2976 = PLN 5,157,120, i.e. after rounding: PLN 5,157,000.
45,000 x 4.2976 = PLN 193,392, i.e. after rounding: PLN 193,000 - for brokers and other persons providing similar services.

Limits for small VAT payers in 2016

Maximum income (including tax) entitling to be a small taxpayer: the equivalent of EUR 1,200,000, converted into PLN.

Maximum income (including tax) for brokers and other persons providing similar services: the equivalent of 45,000 euros, converted into zlotys.

Converted into PLN, in 2016 the limits for small VAT payers are:

1. 1,200,000 × PLN 4.2437 = PLN 5,092,440, i.e. after rounding: PLN 5,092,000.

2. 45,000 x 4.2437 PLN = 190,966.50 PLN, ie after rounding: 191,000 PLN - for brokers and other persons providing similar services.

Limits for small VAT payers in 2015

Maximum income (including tax) entitling to be a small taxpayer: the equivalent of EUR 1,200,000, converted into PLN.

Maximum income (including tax) for brokers and other persons providing similar services: the equivalent of 45,000 euros, converted into zlotys.

Converted into PLN, in 2016 the limits for small VAT payers are:

1. 1,200,000 × PLN 4.1792 = PLN 5,015,040, i.e. after rounding: PLN 5,015,000.

2. 45,000 x 4.1792 PLN = 188,064 PLN, that is after rounding: 188,000 PLN - for brokers and other persons providing similar services.

Limits for small VAT payers in 2014

According to Art. 2 point 25 of the Act on tax on goods and services, a small taxpayer is a person or entity whose sales value (including VAT) did not exceed in the previous tax year the amount expressed in zlotys corresponding to the equivalent of EUR 1,200,000.

A significant limitation of this limit has been provided for by the legislator in the case of taxpayers running a brokerage company, managing investment funds, agents, contractors or other persons providing services of a similar nature, with the exception of a commission commission.

If the amount of commission or other forms of remuneration for services rendered (including the amount of tax) in the previous tax year did not exceed the PLN equivalent of EUR 45,000 in the previous tax year - they may have the status of a small VAT taxpayer.

The conversion of the above amounts expressed in euro should be made according to the average euro exchange rate announced by the National Bank of Poland on the first working day of October of the previous tax year - rounded up to the nearest whole thousand.

In 2013, this date fell on October 1, when, according to the NBP table no. 190 / A / NBP / 2013, the average EUR exchange rate was PLN 4.2230. Therefore, the limit applicable from the beginning of 2014 will be:

EUR 1,200,000 x PLN 4.2230 = PLN 5,067,600, after rounding: PLN 5,068,000.

On the other hand, for taxpayers running a brokerage company and the others mentioned above, the sales limit after conversion will be:

EUR 45,000 x PLN 4.2230 = PLN 190,035, after rounding: PLN 190,000.

As a reminder, it is worth adding that the limit for small VAT payers applicable to taxpayers until the end of 2013 was PLN 4,922,000, so in 2014 it increased by PLN 146,000.

Data limits for small VAT taxpayers refer to sales in a given calendar year.

Example 1.

An entrepreneur running a business in 2013 uses the status of a small VAT taxpayer and settles using the cash method. In November of a given year, sales exceeded the limit of PLN 4,922,000, but this will not result in the loss of status after the end of the quarter, as a new limit will apply from the next year, resulting from the increase in the euro exchange rate.