Polish VAT registration threshold proposal

The Polish government has proposed raising its VAT registration threshold for resident companies.

The current threshold of PLN 150,000 per annum would be increased to PLN 200,000 per annum. This change would free many hundreds of small enterprises from the burden of VAT compliance, and enable the tax authorities to focus on larger companies and VAT fraud detection.

The motion, approved by the Polish cabinet on Tuesday, has to be submitted to the European Commission as a derogation from the EU VAT Directive limits on VAT registration thresholds. Consent by the EC should be a mere formality.

Non-resident companies providing a taxable supply in Poland must register immediately for VAT.