Most active VAT payers in Poland settle monthly: every month they submit a JPK_V7M file with the return and every month they pay the tax. The Polish VAT Act, however, allows smaller businesses to switch to quarterly settlement. For a sole proprietor (JDG) this is a real simplification — fewer deadlines, fewer transfers and more time to set aside the money for tax. Before you report the change, though, it is worth checking whether you meet the conditions and whether this model really suits your business.
Who is a small VAT taxpayer in 2026
A small taxpayer is a business whose sales including VAT did not exceed the equivalent of EUR 2,000,000 in the previous year. The amount is converted at the average NBP (National Bank of Poland) euro rate from the first business day of October of the previous year and rounded to the nearest PLN 1,000. For 2026, at the rate of PLN 4.2586 on 1 October 2025, the threshold is PLN 8,517,000. This means that status in 2026 depends on gross sales achieved in 2025.
Remember that sales are counted including VAT, not as net revenue. The threshold for 2027 will be calculated using the euro rate of 1 October 2026, so towards the end of the year it is worth comparing this year's turnover with the new limit.
How quarterly settlement in JPK_V7K works
A small taxpayer settling quarterly files the JPK_V7K. The records part is still sent monthly — by the 25th of the month following the first and second month of the quarter — while the return is filed only once, together with the records for the last month of the quarter, by the 25th of the month after the quarter ends. In practice, return deadlines fall on 25 April, 25 July, 25 October and 25 January.
The most important change concerns payment: VAT for the whole quarter is paid in one amount by the return deadline, with no monthly advance payments. For a business with stable turnover, this means that the tax on sales from the first month of the quarter reaches the tax office up to about three months later than under monthly settlement.
Switching to quarters — the notification deadline
Choosing quarterly settlement requires prior notification of the head of the tax office, no later than the 25th day of the second month of the quarter for which the first quarterly return is to be filed. In practice, the change is reported by updating the VAT-R form. To settle Q1 2027 quarterly, this must be done by 25 February 2027.
The cash accounting method (metoda kasowa) works differently: a small taxpayer who has chosen it settles quarterly by operation of law. Quarterly settlement on its own, however, does not mean cash accounting — these are two separate choices, and you can opt for the first one only.
When quarterly settlement is excluded
The Act lists several situations in which, despite small-taxpayer status, monthly settlement is mandatory. Most often this affects new businesses: a taxpayer registered as an active VAT payer may not file quarterly returns for 12 months, counting from the month of registration. Other exclusions include supplies of sensitive goods listed in Annex 15 to the VAT Act exceeding PLN 50,000 net in any month of the quarter or the preceding four quarters, imports settled under the simplified procedure, and a finding that the business failed to let customers pay by card or another payment instrument despite being obliged to do so.
Status can also be lost during the year. If sales exceed the threshold, the taxpayer must return to monthly settlement — from the first month of the quarter in which the threshold was exceeded (if it happened in the first or second month), or from the following quarter (if in the third month). Businesses approaching the threshold should therefore monitor their turnover on an ongoing basis.
Returning to monthly settlement and other consequences
A taxpayer who voluntarily chose quarters may return to monthly settlement only after four quarters settled quarterly, having first notified the tax office. This matters mainly for businesses that often report excess input VAT — for example after larger capital purchases. A VAT refund is then possible only after the quarterly return is filed, so the money comes back later than with monthly settlement.
Quarterly settlement does not change other obligations. VAT-UE recapitulative statements are filed for monthly periods, invoices are issued under the existing rules, and the JPK records must be kept up to date. Quarterly VAT also does not automatically mean quarterly income tax advances — that is a separate decision under PIT.
Who it suits best
Quarterly settlement works best for service businesses with regular sales in which output VAT exceeds input VAT — they gain liquidity and save time. It pays off less with frequent VAT refunds, planned large investments, or when it is easy to overlook a single larger payment once a quarter. A good practice is to set VAT aside in a separate account, such as the VAT account used in the split payment mechanism (mechanizm podzielonej płatności), so that the amount due after the quarter does not come as a surprise.