Poland’s lower house of the Parliament (Sejm) passed the first reading of a bill which allows small businesses with sales in the previous tax year not over EUR 100,000 to receive a value-added tax (VAT) exemption in other EU countries on 27 September 2024.
Earlier, Poland’s Ministry of Finance’s approval on 10 September 2024 of a draft bill to simplify and modify VAT regulations for small businesses.
Currently, Polish entrepreneurs with turnovers up to PLN 200,000 are VAT-exempt in Poland but must pay VAT on EU transactions from the first one. The EU directive (2020/285) revises these regulations by extending VAT exemptions to small businesses across other EU countries, easing foreign market operations.
In addition, the Sejm approved a law on 24 September 2024 introducing the option for businesses with revenue in the previous tax year not over PLN 1 million to use the cash method in accounting for costs and revenues (cash PIT), which will go into effect in 2025.
