Registering a business for VAT (value added tax) is a fundamental step for entrepreneurs who plan to conduct business in Poland and intend to sell goods or services subject to this tax.
The following entities should register for VAT:
- Entrepreneurs who generate revenues exceeding PLN 240,000 per year (in the case of sales of goods and services).
- Persons conducting business activity who want to deduct input VAT on purchases.
- Entities that make intra-Community acquisitions of goods or import goods.
Types of VAT registration:
- Active VAT: for taxpayers who conduct business activity and are required to pay VAT.
- VAT exempt: for taxpayers who do not exceed the revenue limit and can benefit from VAT exemption.
VAT registration is important for entrepreneurs because it allows them to:
- Deduct input VAT on purchases.
- Sell goods and services with VAT.
- Comply with the legal requirements related to running a business in case of exemptions from Art. 113 paragraph 1 and 9. of the VAT Act are not applicable.