Deregulation

How it was?

Small businesses and public institutions faced administrative requirements atrelatively low thresholds.

Businesses could benefit from VAT exemption only if their annual turnover didnot exceed PLN 200,000. At the same time, public authorities were requiredto apply public procurement procedures for contracts exceeding PLN 130,000net, increasing administrative workload and extending procurement timelines.

 

What has changed?

Thresholds for VAT exemption and public procurement procedures have beenincreased.

The VAT exemption threshold has been raised from PLN 200,000 to PLN240,000 in annual turnover. In addition, the threshold for applying publicprocurement rules has increased from PLN 130,000 to PLN 170,000 net.This allows more businesses to benefit from simplified tax arrangements andenables public institutions to carry out lower-value purchases moreefficiently.

 

Who benefits?

Simplified rules for 8,664 public contracts and 19,000 taxpayers.

Raising the public procurement threshold to PLN 170,000 enables fasterawarding of lower-value contracts without a full tender procedure. Based on2024 data, this change could affect approximately 8,664 contracts with atotal value exceeding PLN 1.3 billion. At the same time, increasing the VATexemption threshold expands eligibility for simplified tax treatment to anestimated additional 19,000 taxpayers.