Who Is an Active VAT Taxpayer?

In Poland, there are active VAT taxpayers and VAT-exempt taxpayers. Both groups have entirely different obligations and rights, which are worth getting acquainted with. In this article, we have gathered the essential information about the first group. Find out who qualifies as an active VAT taxpayer, what obligations this entails, and why understanding them is so important when running a business.

Active VAT Taxpayer — Who Is It?

In short, an active VAT taxpayer is an entrepreneur who has registered as a VAT taxpayer and carries out activities subject to this tax. This applies to: natural persons, legal persons, and organisational units. An active VAT taxpayer is thus an entity that does not benefit from statutory tax exemptions during the conduct of business activity — neither mandatory ones nor by voluntary choice.

Mandatory Active VAT Taxpayer Status — Who Does It Apply To?

In many sectors, the obligation to become an active VAT taxpayer in 2025 applied to businesses whose sales of goods or services in the tax year exceeded 200,000 PLN. From 2026, the regulations are less restrictive and the threshold has been raised to 240,000 PLN. However, there are industries in which entities are obligatorily required to register as active VAT taxpayers regardless of the value of goods or services sold. This applies to, among others:

• sale of selected goods subject to excise duty,
• sale of goods listed in Annex 12 to the VAT Act (e.g.: jewellery, precious metals),
• construction land,
• new means of transport,
• buildings, structures or their parts (selected),
• online sales of: computers, cosmetics, electrical devices, machinery, automotive parts and others,
• provision of legal services,
• debt collection and factoring,
• advisory services.

How to Become an Active VAT Taxpayer?

To become an active VAT taxpayer, you must complete the VAT-R form, which serves as the registration declaration for the tax on goods and services. The correctly completed application is submitted to the relevant Head of the Tax Office for the registered seat of the business.

The application can be submitted:

• via the e-Tax Office (electronically),
• through the e-Deklaracje system (electronically),
• as an attachment to a CEIDG business registration application or a CEIDG amendment application (electronically),
• by post,
• in person at the Tax Office branch.

Registering an entrepreneur for VAT purposes does not incur any additional fees. Costs arise only when the entrepreneur applies for a confirmation of registration as a VAT taxpayer — in which case a stamp duty of PLN 170 applies. After VAT registration, your company will appear on the so-called White List of VAT Taxpayers maintained by the Head of the National Revenue Administration. From that point on, you may legally issue VAT invoices.

When Must the Application to Become an Active VAT Taxpayer Be Filed?

The regulations specify when the VAT-R application must be submitted. As a rule, this must be done before the day on which the first activity (service or sale of goods) subject to VAT is performed. If as an entrepreneur you benefit from an exemption under Article 113 of the VAT Act, the application must be submitted before the day on which you lose this right, or at the beginning of the month in which you voluntarily waive the exemption.

Active VAT Taxpayer vs. VAT-Exempt Taxpayer — Differences

Polish legislation distinguishes between active and exempt VAT taxpayers. The differences between them are illustrated in the table below.

Active VAT taxpayer	VAT-exempt taxpayer
Obligations	- VAT registration - maintaining VAT sales and purchase records - submitting JPK_VAT - paying VAT - issuing VAT invoices

• maintaining simplified records - issuing invoices with a note on VAT exemption and its legal basis |

| Rights |

• the possibility of deducting input VAT from output VAT to reduce the tax liability |
• voluntary registration as an active VAT taxpayer |

The table above shows that active VAT taxpayers have significantly more obligations, and the accounting process itself is more complex and requires greater diligence.

Right to Deduct VAT

Many entrepreneurs voluntarily choose to register for VAT in order to benefit from the right to deduct VAT. This is the primary advantage for entities that carry out incoming and outgoing transactions subject to VAT. As a result, it is possible to reduce the mandatory tax liability vis-a-vis the Tax Office, which lowers the costs of business activity. Of course, this is only justified in specific circumstances, so each case should be assessed individually. For this purpose, it is advisable to consult a reputable tax advisor. Voluntary VAT registration is also justified when an entity wants to increase its market attractiveness, as business partners tend to prefer cooperating with active VAT taxpayers.

References:

• https://www.podatki.gov.pl/podatki-firmowe/vat/informacje-podstawowe/
• https://www.biznes.gov.pl/pl/portal/00246#2
• https://www.biznes.gov.pl/pl/portal/00246#2
• https://www.ey.com/pl_pl/insights/tax/kim-jest-czynny-podatnik-vat