VAT (value added tax) registration applies to natural persons, legal persons, organizational units without legal personality, performing their own business activity as traders, service providers and producers. It also applies to natural resource extractors and farmers. To register as a VAT payer you must meet several conditions. These include: exceeding the value of 200 thousand zlotys of sales in the previous year as well as providing services or selling goods listed in the VAT Act. In each case, the amount of tax is not included, and services rendered and goods supplied included in Article 113 paragraph 2 of the VAT Act are not taken into account. Read the article to the end and find out how the VAT registration process works.
When are you exempt from the obligation to register as a VAT taxpayer?
There are two types of exemptions from registering as a VAT taxpayer. These include:
- subjective exemption – in case you do not exceed the limit of 200 thousand zloty. Also, in a situation where you start business during the year and do not exceed the limit set proportionally to the number of months in the year,
- subjective exemption – in a situation when you perform only the activities listed in Article 43(1) of the Goods and Services Tax Act (e.g. care for the disabled, medical services).
As an exempt taxpayer, you do not have to submit VAT returns. You do not settle the output tax on your sales to the tax office. You are also not entitled to input tax refunds.
VAT registration – When should I register?
You should submit the registration application before the date of:
- the first sale of goods or services subject to VAT,
- when you lose your right to exemption, i.e. when the limit of net sales value exceeds PLN 200,000,
- the beginning of the month in which you resign from the subjective exemption and the exemption which a flat-rate farmer is entitled to.
How to register?
- online – through the Information and Service Service for Entrepreneurs as an attachment to the application for a change in the CEIDG entry or through the Tax Portal,
- traditionally – by mail or in person – to the tax office or tax office for the largest entities relevant to the place of residence (for sole proprietorship) or seat of the entity (for legal persons, e.g. a limited liability company or unincorporated entities, e.g. an association) that applies for VAT registration.
VAT registration – Cost
VAT registration is free. If you need a confirmation of registration, you will pay PLN 170 for it. If you deal with the case through an attorney, you will have to pay 17 zł for the power of attorney. The exceptions are powers of attorney granted to family members. The fees should be paid to the account of the city or municipality competent for the seat of the tax office.
VAT registration – waiting time
VAT registration is dealt with immediately. In case of mistakes or shortcomings in the application, it may take longer.