The VAT exemption limit in 2026 is PLN 240,000 of net sales value per year. If you exceed this threshold, you will lose the right to the exemption. To quickly check if you are approaching the limit, you can use our tool – a VAT limit calculator. It is simple and intuitive to use. You only need to provide a few details to get the calculations. 

The 2026 VAT threshold – what is it and who does it apply to?

In 2026, the VAT exemption limit is PLN 240,000 of net annual sales. Therefore, an entrepreneur can benefit from a VAT exemption as long as the value of their sales does not exceed this threshold. The relief applies to both businesses continuing their operations and those starting them. Additionally, there is an exemption for specific services (e.g., medical, educational). The limit applies to, among others, sole proprietorships, individuals collaborating in a B2B model, and small companies. 

So long as net sales in a given year do not exceed PLN 240,000, you can benefit from VAT exemption and do not have to add tax to the prices of your services or products. The grounds for VAT exemption are based on the provisions of the Act on Tax on Goods and Services. 

If you want to quickly check if you're approaching the VAT threshold, a calculator will be helpful. The tool allows you to quickly calculate sales and check if you fall within the exemption limits. Simply specify the type of exemption and the first day of business, and you will receive information regarding your exemption limit. 

How to calculate the £240,000 limit for VAT?

How to calculate how much specific leave you are entitled to in a given year? The rule is relatively simple, but you need to remember a few important elements. First and foremost, net sales, meaning the value of sales excluding VAT, are included in the limit.

For the calculation, you need:

• calculate the total net sales since the start of the year,
• checking if the sum has not exceeded £240,000,
• monitor sales on an ongoing basis, particularly when revenue is growing rapidly.

VAT limit when starting a business part-way through the year

If a business was started during the year, the VAT threshold is not automatically £240,000. In this case, it needs to be calculated proportionally. It is then calculated based on the number of days the business operated in that year.

For example, if a company was established exactly halfway through the year, the VAT exemption limit will be PLN 120,000 net. If you wish to calculate the exemption for part of the year, it will be particularly useful to use the VAT limit calculator, which automatically adjusts the amount in proportion to the period of business activity.

When do you lose your VAT exemption?

A business owner loses their right to VAT exemption once their net sales exceed PLN 240,000. Any transaction that causes this limit to be exceeded must be subject to VAT. In this situation, there is also an obligation to register as a VAT payer.

That is precisely why it is so important to monitor sales and regularly check the threshold, for example by using a VAT calculator. For businesses that sell online or whose business model is based on a high volume of transactions (e.g. dropshipping), the threshold can be exceeded more quickly than one might think.

Is it worth registering for VAT before exceeding the threshold?

Sometimes businesses choose to register for VAT even before they exceed the threshold. This mainly applies to companies that:

• collaborate with other entities as part of their activities,
• incur significant VAT costs on purchases,
• They are planning for rapid sales growth.

In such cases, an earlier move to VAT can simplify accounting and help avoid problems associated with the limit being suddenly exceeded.

Limited VAT in previous years – 2025 vs 2026

In recent years, the VAT exemption limit has changed:

• 2025 – the limit was £200,000 net sales,
• 2026 – the limit has been raised to PLN 240,000 net sales.

Raising the threshold means that a greater number of businesses can benefit from the tax exemption for a longer period.

Regularly checking sales and using the VAT threshold calculator will help you avoid errors in your accounting and properly prepare for the moment you switch to VAT. The tool available on our website is simple, intuitive, and its calculations are in line with the current legal situation. 

If you want to safely manage your tax threshold, prepare for VAT registration, or need support with your ongoing accounting, get in touch with us. We'll be happy to show you how convenient online accounting can be with the support of an experienced accounting manager.