VAT exemption - how to return to it?


Entrepreneurs who are active VAT taxpayers may resign from this status in certain situations. However, they must remember that such a decision has certain consequences. So how can you go back to the VAT exemption?

Subjective VAT exemption - for whom?

Pursuant to the provisions of the VAT Act (Article 113 of the VAT Act), entrepreneurs whose sales value did not exceed the total amount of PLN 200,000 in the previous tax year. PLN (valid from 2017), may benefit from a subjective VAT exemption. This is called optional exemption, as the taxpayer decides whether to use it or not. Importantly, for entrepreneurs setting up business during the year, this limit is calculated proportionally.


However, it should be remembered that there are types of activities that exclude the right to benefit from the subjective exemption, regardless of the amount of turnover. Entrepreneurs who provide, for example, legal services, consultancy services or jewelery services, must be VAT payers right away.

VAT exemption - when can you come back?

In a situation where the entrepreneur is entitled to VAT exemption, but has previously registered as an active VAT taxpayer, he may return to the exemption under certain conditions. He must remember that this decision cannot be made earlier than before the end of the year, counting from the end of the year in which he lost the right to exemption or resigned from it. A taxpayer who wants to return to the subjective exemption from VAT is obliged to submit a VAT-R (update) form within 7 days from the date on which the change takes place.

Importantly, the return to the VAT exemption does not have to take place on January 1 of a specific tax year. Registration as a VAT-exempt taxpayer can also be made during the registration process.

VAT exemption - return conditions

In summary, each taxpayer who plans to return to the VAT exemption must meet the following conditions cumulatively:

  • in the previous tax year, the total amount of sales did not exceed PLN 200,000 zloty,
  • the resignation from the dismissal or its loss occurred in the above-mentioned time limit.

VAT exemption - how to get back to it?

If the previously indicated conditions are met, the entrepreneur may return to VAT exemption. For this purpose, a properly completed VAT-R must be submitted.

It is very important that in part A "Purpose and place of assembly", in pos. 4 indicate square 2. - "data update". It is also necessary to complete items 8 and 9 - in case of return to the exemption, as the scope of the data change, please indicate option 1: "The change did not change the properties of the tax authority". Position 9 in this case remains empty.

For the return to the dismissal, the information in part C is also important, and more precisely the selection of the option in item 30 - “the taxpayer will benefit from the exemption referred to in Art. 113 paragraph. 1 or 9). Additionally, in item 38, provide the exact date from which the entrepreneur will benefit from the VAT exemption.

As you can see, return to the VAT exemption is possible after meeting the statutory conditions. However, it should be remembered that such action most often involves the need to correct the deducted tax and several other necessary formalities. This applies to goods and materials that were not sold before returning to VAT exemption, as well as fixed assets and equipment.