Objective VAT exemptions in JDG in 2026 — in Poland

The exemption applies to a specific activity, not to the entire taxpayer. A company can sell exempt and taxable services at the same time. The right to exemption is determined by the full provision and the actual nature of the benefit - rarely the PKWiU code alone.

Subjective and objective exemption

Subjective exemption

In 2026, the limit for the personal exemption is PLN 240,000 in sales, taking into account the rules of proportion and activities excluded from the limit. A taxpayer who meets the conditions may use it or opt out.

Objective exemption

Article 43 of the VAT Act exempts specified supplies and services after meeting their detailed conditions. Exceeding the limit of PLN 240,000 does not remove the exemption from a specific service if it still meets the conditions of Art. 43.

However, it cannot be assumed that all exemptions are absolute. The Act allows you to choose taxation in certain cases, including for some real estate transactions and selected financial services provided to taxpayers. Each cancellation has its own terms and conditions.

Medical services

The exemption covers specific medical care services aimed at preventing, maintaining, saving, restoring and improving health if they are provided by an entity or person specified in the Act.

There are two things you need to check:

• purpose and nature of the service,
• service provider status.

Not every service performed by a doctor is exempt and not every health-related service becomes exempt by being assigned to PKWiU section 86. Services with purely aesthetic, advisory or evidentiary purposes may not meet the therapeutic requirement.

Educational services

Educational exemptions cover various bases, including services provided by units of the education system, universities and specific vocational training or retraining.

In vocational training, the following may be important:

• conducting in the forms and principles provided for in the regulations,
• accreditation - within the scope of accreditation,
• financing entirely from public funds,
• other specific conditions of the act or regulation.

There is no general “certification means exemption” rule, and lack of accreditation does not always automatically mean 23%.

Financial and insurance services

Article 43 covers, inter alia, certain:

• insurance and reinsurance services and intermediation,
• granting credits and loans and intermediation,
• guarantees and sureties,
• transactions involving accounts, payments, currencies and financial instruments.

The exemptions have exemptions, for example for some advisory services, debt collection or safekeeping. Merely linking service with finance is not enough.

With respect to selected financial services, the Act allows you to waive the exemption when providing them to taxpayers, after meeting the conditions. This does not automatically apply to insurance services.

Real estate

Delivery of buildings and structures

Exemption depends on, among other things, first occupancy, time since occupancy, and prior deductions or improvements. In certain cases, parties may elect to be taxed if they meet the conditions.

Not all real estate sales are exempt.

Apartment rentalThe exemption applies to renting residential real estate or parts thereof on one's own account, for residential purposes only, taking into account specific regulations for social rental agencies.

Short-term rentals, accommodation and rentals for other purposes do not benefit from this exemption simply because the property is a dwelling.

Social assistance and care

Exemptions for social assistance and personal care require verification of the type of benefit and the status of the entity or method of financing indicated in the Act.

The PKWiU 88 code itself does not provide automatic exemption. The designations "88.10.A" and "86.90.E" are not valid PKWiU codes - the letters at the end appear in PKD codes, not that way in PKWiU.

Culture and sport

Not all theatres, cinemas, museums or all sports services are exempt. The exemptions cover specific services provided by designated entities and under additional conditions; they also have exemptions, including for some admission and commercial services.

Each service must be assigned to a specific point of the article. 43, and not to the general entry "culture" or "sport".

The export of goods is not an objective exemption

The export of goods may be taxed at a rate of 0% if the conditions are met and the taxpayer has the required document confirming export. The 0% rate is not the same as VAT exemption.

At 0%, sales remain taxable and may retain the right to deduct input VAT. In the case of exempt sales, the right to deduct is generally limited.

Invoice for exempt sales

The obligation to issue an invoice depends on the type of buyer, request and specific regulations. If the invoice documents exempt sales, it does not indicate the VAT amount and should contain the required markings or the basis for the exemption, taking into account the exceptions provided for in the regulation.

Do not enter a random PKWiU code or point of art. 43. The basis on the invoice must correspond to the actual exemption.

VAT on purchases

If the purchase is solely for exempt sales, it generally does not give the right to deduct input VAT. Registration as an active VAT payer itself does not change this.

When making purchases related to both taxable and exempt sales, you may need:

• direct allocation of expense,
• sales proportion,
• pre-coefficient if there is also non-economic activity,
• annual or multi-year correction.

The most common errors

1. Recognition that each objective exemption is absolute.
2. Basing the medical leave only on the PKWiU.
3. Dismissal of any course due to certification.
4. Exemption of all cultural or sports services.
5. Treating exports as exempt sales instead of 0%.
6. Assumption that VAT registration allows purchases to be deducted from exempt sales.
7. Using PKD codes with letters as alleged PKWiU.
8. Lack of division of purchases in mixed sales.

Sources

• VAT Act - ELI, Art. 43 and 86

Do you need to determine the basis for dismissal?

Oxyok provides JDG accounting with taxable and exempt sales - from PLN 49 + VAT per month.Write to Paweł or see Oxyok accounting.

The material is of a general nature. The exemption must be assigned to a specific provision and factual situation.