Small VAT Taxpayer 2026 — EUR 2 Million Limit and Quarterly Filing

Who Is a Small VAT Taxpayer?

A small VAT taxpayer is an entrepreneur whose total sales value (VAT-inclusive) in the previous tax year did not exceed the equivalent of EUR 2 million. The small taxpayer status is granted automatically — no separate application is required.

The status remains in effect until the end of the year, even if you exceed the threshold mid-year — you only lose it from January of the following year.

Key Benefits of Small Taxpayer Status

• Quarterly VAT filing — JPK_V7K (SAF-T VAT file) submitted every 3 months instead of monthly (with exceptions: a newly registered VAT taxpayer must file monthly for the first year)
• Cash accounting method for VAT — output VAT becomes due only when the customer pays, not when the invoice is issued
• Accelerated 25-day VAT refund — instead of the standard 60 days
• Quarterly PIT/CIT (personal/corporate income tax) advance payments — payments every quarter instead of every month

Quarterly VAT Filing — Who Is Eligible

Only taxpayers who have been registered as small taxpayers for at least 12 months may use quarterly filing. New VAT taxpayers must file monthly for the first year.

Exceptions — quarterly filing unavailable even for small taxpayers:

• Sale of sensitive goods (fuels, electronics, metals)
• Exports below 30% of turnover
• Failure to file JPK_V7M (monthly SAF-T VAT file) on time in the last 2 years

Cash Accounting Method for VAT — How It Works

Under the standard method, output VAT arises on the date the invoice is issued. Under the cash accounting method, it arises only when the customer pays. This means you do not remit VAT on invoices you have not yet collected payment for.

Choosing this method: submit a notification to the tax office (updated VAT-R registration form) — you must remain on the cash method for a minimum of 12 months.

Important: if the customer does not pay within 90 days of the payment due date, output VAT becomes due regardless — by operation of law.

How to Obtain and Lose Small Taxpayer Status

Obtaining: automatically, if your turnover in the previous year was ≤ EUR 2 million. No filing required.

Losing: in the year you exceed the threshold, the status remains in effect until year-end. From January 1 of the following year, you become a standard (large) taxpayer subject to monthly filing and full procedures.

Voluntary resignation: submit a VAT-R form; you become a standard taxpayer from the next filing period.

Frequently Asked Questions