A person running unregistered business activity is, under the VAT Act, a taxpayer — usually, however, an exempt one. With the quarterly limit of PLN 10,813.50 in 2026, the annual turnover-based VAT exemption threshold of PLN 240,000 cannot be exceeded, so the VAT obligation is determined not by the amount of turnover but by the type of sales. Selling cosmetics online, gold products or legal advice excludes the exemption from the very first transaction, and buying services from foreign platforms triggers obligations even under a full exemption.
Where VAT obligations come from without a CEIDG entry
Not having an entry in the business register exempts you from some formalities, but does not change the fact that selling goods and services in an organised and repetitive manner is, for VAT, business activity. The turnover-based VAT exemption from art. 113 of the VAT Act covers sales up to PLN 240,000 net a year, and when starting during the year — proportionally less. The Act lists, however, situations in which this exemption cannot be used at all, regardless of the amount of sales.
Sales that require VAT from the start
The turnover-based VAT exemption is not available if the taxpayer:
- sells online (or otherwise at a distance, when the contract is concluded without a meeting of the parties) cosmetics and toilet preparations, computers, electronic and optical products, electrical equipment or machinery and equipment — this exclusion most often surprises people selling on social media;
- sells products made of precious metals listed in Annex 12 to the Act, including gold or silver jewellery;
- sells excise goods, e.g. alcohol (except, among others, tobacco products and electricity);
- trades in parts and accessories for cars and motorcycles;
- provides legal, advisory (apart from agricultural advisory), jewellery or debt collection services.
For a person who handmakes silver jewellery or provides advisory, this means the obligation to register as an active VAT taxpayer before the first sale. In practice, such activity rarely makes sense without a CEIDG entry — with VAT registration, records and JPK declarations, the formalities are the same as in a company, and the benefits of the unregistered form disappear.
What to watch out for with cosmetics
The exclusion concerns sales at a distance. The same person selling handmade soaps and creams exclusively at a local fair, face-to-face, does not lose the exemption on this account. However, accepting an order via a messenger message and sending the parcel is enough for the sale to fall within the scope of the exclusion. The boundary is therefore marked by the way the contract is concluded, not by the scale.
Buying services from abroad — an obligation easy to forget
Advertising on social media, fees for a foreign sales platform or a subscription to graphic software bought from a company outside Poland are, for a VAT taxpayer, an import of services. The tax on such a service is settled by the buyer, not the seller, including when they themselves use the turnover-based VAT exemption.
An exempt taxpayer does not file JPK_V7, but reports the import of services on a VAT-9M declaration, filed electronically for each month in which such an obligation arose — the deadline is the 25th day of the following month. Before the first purchase of a service from a counterparty in another EU country, you must also register for VAT-UE. The VAT paid this way is a cost — an exempt taxpayer cannot deduct it.
Example: a cosmetics shop on social media
Ms Magda makes natural balms and sells them via a social media profile. Her quarterly earnings are about PLN 6,000, so she fits within the unregistered activity limit. Nevertheless:
- selling cosmetics online, she cannot use the turnover-based VAT exemption — she should register as an active VAT taxpayer before the first sale and add VAT to the price;
- paying for advertising to a foreign supplier, she settles the import of services in her declaration;
- she needs a VAT sales record and files JPK_V7, and invoices for companies she issues in KSeF (for sales documented with invoices up to PLN 10,000 per month, this obligation will cover her from 1 January 2027).
A sensible solution for her is to set up a JDG — since VAT obligations are the same as in a company, she at least gains the possibility of using start-up relief at ZUS and deducting costs. If she wants to remain VAT-exempt, she could limit herself to stationary sales.
Consequences of overlooking it
- The office may determine VAT due retrospectively on the whole sales covered by the exclusion — tax paid out of own pocket, because it was not added to the price for clients.
- Interest for delay is added to the arrears.
- Lack of registration and declarations may lead to fiscal penal liability.
- If the records are unreliable, the authority estimates the value of sales on its own.
Quick test for unregistered activity
| Question | If "yes" |
|---|---|
| Do I sell cosmetics, electronics or electrical equipment online? | VAT registration before the first sale |
| Do I sell gold, silver or platinum products? | VAT registration before the first sale |
| Do I provide advisory or legal services? | VAT registration before the first service |
| Do I buy services from foreign companies? | VAT-UE (for an EU counterparty) and a VAT-9M declaration |
| None of the above | Turnover-based exemption; a sales record is enough |
The general rules of activity without registration, including limits and records, are described in the article who unregistered activity is for, and the basics of VAT — in the text on VAT in Poland.
How Good Balance can help
We will assess whether your sales fit within the VAT exemption, and if not — we will help you move to JDG and register for VAT before the first transaction. The details of setting up a business are described in the service registration of a sole proprietorship, and in ongoing support we also handle VAT invoices.