Revenue limit for lump sum, cash PIT and small VAT taxpayer status. Check the applicable values and whether you still qualify for the simplified form of settlement.
Registered lump sum and cash PIT are two of the most popular simplified forms of business settlement. Each, however, has a revenue limit — exceeding it means losing the right to this form in the following year. Let's check exactly how much.
The annual revenue limit for lump sum is EUR 2,000,000 (converted to zloty at the NBP rate of 1 October of the year preceding the tax year). In case of exceeding the limit during the year — in the next year you have to switch to general principles (tax scale) or flat tax. The lump sum itself can still be applied until the end of the year in which the limit was exceeded.
Cash PIT (from 2025) — allows recognizing income only at the moment of receiving payment, not issuing the invoice. This is a huge relief for companies that wait long for payments. Revenue limit: PLN 1,000,000 annually (to be reached in the previous year). Additional requirement: keeping a tax book of revenues and expenses (PKPiR), not full accounting.
Small VAT taxpayer — sales limit EUR 2,000,000 annually (with VAT). Benefits: • Possibility of quarterly VAT settlement (instead of monthly). • Possibility of using the cash method in VAT — tax revenue at the moment of payment from the contractor. • Less formalities and less administrative burden.
What counts towards the limit? Net revenue from business activity — without VAT. Non-revenue values (e.g. bank interest) usually do not count, but there are exceptions. Who monitors the limit? Standardly we do, the accounting office — we inform the client when revenues are approaching the threshold. What if I exceed the limit unknowingly? Penalty: no right to lump sum/cash PIT from the next year. There are no retroactive sanctions if the settlements for the year of excess are correct.
Choosing between lump sum, cash PIT and other forms of taxation is a decision that affects business profitability throughout the year. We will help analyze your situation and choose the best solution. Contact us.