Free invoice generator and tax tools for Poland

Income tax on business profit is the Personal Income Tax (PIT) for sole traders and partners. The default is the tax scale of 12% up to 120,000 zł of income with a tax-reducing amount, and 32% above (art. 27 of the PIT Act). The alternatives are a 19% flat rate on business income (art. 30c) and the lump-sum regime ryczałt. Advances are paid during the year (art. 44), and the tax offices of the National Revenue Administration, Krajowa Administracja Skarbowa (KAS), collect them.

Social insurance and health contributions are collected by ZUS, not by the tax office. For employees, the payer calculates the contributions, withholds the employee's share and transmits everything to ZUS: art. 17 of the social insurance system act. Health insurance is 9% of the contribution base under art. 79 of the health-care benefits act. Payers with legal personality settle by the 15th of the following month and all other payers by the 20th (art. 47).

VAT is declared and paid to the tax office. Alongside it, the VAT Act now obliges taxpayers to issue and receive structured invoices through the National e-Invoice System, KSeF (art. 106ga and 106gb, in this form since 1 February 2026). The latest consolidated text of the VAT Act was announced on 1 September 2026 (Dz.U. 2026 poz. 1263), so the rules on this page follow that text.

Ryczałt od przychodów ewidencjonowanych (lump-sum tax on recorded revenue) is the Polish presumptive regime for individuals. It is open to a sole trader whose revenue in the previous year did not exceed EUR 2,000,000, and to a business that starts during the year regardless of revenue (art. 6 ust. 4 of the lump-sum act). The tax is charged on revenue, not on profit, at rates fixed by activity: 17% for the liberal professions, 15%, 14% for health care and architectural and engineering services, 12%, 10%, 8.5% on the first 100,000 zł and 12.5% above for rental and accommodation, 3% for trade and catering, and 2% for the case in art. 6 ust. 1d (art. 12). It is chosen in writing with the tax office by the 20th of the month after the first revenue (art. 9) and paid by the 20th of the next month, or quarterly if elected (art. 21). Pharmacies, currency dealing and trade in motor vehicle parts are excluded (art. 8). It replaces PIT only; VAT stays under the VAT Act.