Significant changes for Polish companies and entrepreneurs will come into effect in 2026. These include an increase in the minimum wage, an increase in the VAT exemption limit, the inclusion of CO2 emissions from machine engines for the PIT and CIT, an increase in the revenue limit for the cash method and PIT, integration with the KSeF, new rules for determining length of service. A brief overview of these changes is available in our article.

One important change is the increase in the VAT exemption threshold. Starting in 2026, the threshold will increase to 240,000 zlotys of annual revenue (sales). The provisions will also allow taxpayers whose income in 2025 exceeds the 2025 limit of 200,000 zlotys but does not exceed 240,000 zlotys to continue operating outside the VAT system, returning to the exemption in 2026. We discuss this in our article.

Effective January 1, 2026, the rules for accounting for passenger car-related expenses for personal income tax (PIT) and corporate income tax (CIT) will also change. The current single limit will be replaced by a CO2-based approach. The new limits will apply to depreciation, operating leases, rental payments, and leasing. The conditions for applying the new limits are described in our article.

The cash method of PIT accounting will be expanded. The revenue limit for this method will increase from 1 million zlotys to 2 million zlotys. This decision will remain voluntary and will require filing a tax return.

In 2026, wage levels and social security contribution rates will increase due to the increase in the minimum wage.

In 2026, the National Electronic Invoice System (Krajowy System e-Faktur, KSeF) will be introduced. The Estonian Social Insurance Fund (KSeF) will modernize accounting systems, document management, and tax procedures. At the same time, changes are being made to the JPK_VAT system, bringing reporting into line with the KSeF. We offer consultations on how to integrate with this system.

Several regulations will come into force during the year, including new rules for determining length of service, arising from amendments to the Labor Code. These include the inclusion of periods of business activity, performance of service contracts, agency agreements, or service contracts, cooperation in entrepreneurial activities, suspension of business activity for childcare, and paid employment abroad in the length of service (which affects vacation, severance pay, and bonuses). These periods will be verifiable, among other things, with certificates from the Social Insurance Institute (ZUS).