Unregistered Business Activity in Poland (2026): Legal Status, Income Limits, Taxes, and Liability
Legal nature and scope of application
(Article 5 of the Law on Entrepreneurs – Prawo przedsiębiorców)
As of 1 January 2026, unregistered business activity (działalność nierejestrowana) remains a specific legal regime allowing a natural person to carry out minor economic activity without registration in CEIDG.
This form of activity is often perceived as a “simple” or “safe” way to earn income without formalities. In reality, it is an exceptional legal regime with strictly defined boundaries.
Its application is permitted only if all statutory conditions are met simultaneously. A breach of any single condition automatically results in the activity being classified as full-scale business activity, with all corresponding tax and sanction-related consequences.
The law clearly defines when such activity is not considered business activity within the meaning of Article 5:
- the person has not conducted business activity during the previous 60 months;
- income in any quarter does not exceed 225% of the minimum wage;
- the activity does not require a permit, concession, or entry into a regulated professions register;
- the activity is conducted solely and individually, without participation in a spółka cywilna;
- the person is not registered as a VAT taxpayer under general rules.
Once any of these conditions is violated, the full business regime applies automatically.
Income limit for unregistered activity in 2026 and the moment when registration becomes mandatory
In 2026, the minimum wage amounts to PLN 4,806, which results in the following quarterly income limit for unregistered activity:
225% × PLN 4,806 = PLN 10,813.50 per quarter
Exceeding this threshold has two direct consequences:
- The status of działalność nierejestrowana ends at the moment the limit is exceeded, not at the end of the quarter.
- Within 7 days, the person is obliged to submit an application to CEIDG to register business activity.
Continuing activity without registration after exceeding the limit is treated as conducting business without registration, which entails administrative liability.
Importantly, Polish law does not provide any transitional or grace period after the limit is exceeded. The mere fact of exceeding the quarterly threshold automatically changes the legal regime of the activity, regardless of intent, income regularity, or later income reduction.
Unregistered activity and invoicing (when an invoice is required)
Unregistered activity does not create an automatic obligation to issue an invoice for every transaction. Polish law does not require invoicing of every minor sale.
If the buyer does not request an invoice, other proof of the transaction (e.g. bank transfer confirmation or receipt) is sufficient.
Invoice issued at the buyer’s request
(Articles 106b and 106i of the VAT Act)
A person conducting unregistered activity and benefiting from VAT exemption (zwolnienie podmiotowe, Article 113 of the VAT Act) is required to issue an invoice at the buyer’s request, provided that the request is made:
- no later than the end of the third month following the month in which the goods were supplied, the service was rendered, or payment was received.
The deadline for issuing the invoice depends on when the request is submitted:
- if the request is submitted by the end of the month in which the transaction occurred – the invoice must be issued by the 15th day of the following month;
- if the request is submitted later, but within the 3-month period – the invoice must be issued within 15 days of the request.
Thus, under unregistered activity, an invoice is not required “by default”, but becomes mandatory upon request within the statutory deadlines.
Unregistered activity and VAT status
In most cases, unregistered activity benefits from VAT exemption, as turnover remains well below the annual threshold of PLN 200,000.
The obligation to register as an active VAT taxpayer arises only where goods or services are provided that cannot benefit from VAT exemption (e.g. certain legal, tax, jewellery services, excise goods). In such cases, VAT registration is mandatory from the outset, regardless of turnover.
Voluntary VAT registration is also possible, but it constitutes a separate and conscious decision of the taxpayer.
KSeF and unregistered activity from 2026
From 1 February 2026, Poland introduces mandatory use of the National e-Invoicing System (KSeF) for VAT taxpayers, including those benefiting from VAT exemption under Article 113 of the VAT Act.
For unregistered activity, this means:
- as long as the person is not a VAT taxpayer, there is no obligation to use KSeF;
- however, if a VAT-exempt person issues an invoice at the buyer’s request after the effective date of mandatory KSeF, that invoice is subject to issuance via KSeF, in accordance with transitional rules;
- use of KSeF requires a NIP number, which a natural person obtains by submitting form NIP-7.
For certain low-turnover exempt taxpayers, transitional periods apply, but the general rule remains clear: once an invoice is issued after KSeF becomes mandatory, it gradually moves into the electronic KSeF framework.
Fiscal cash register and unregistered activity
From a VAT perspective, a person conducting unregistered activity is considered a seller. Therefore, the rules on fiscal cash registers established in the VAT Act and secondary legislation apply.
1.General rule
Pursuant to Article 111 of the VAT Act, sales of goods or services to individuals not conducting business activity and to flat-rate farmers are, as a rule, subject to recording via a fiscal cash register, unless an exemption applies.
2.When a cash register is not required
The most common exemptions include:
- PLN 20,000 turnover limit – if annual turnover from sales to individuals and flat-rate farmers does not exceed this amount and the activity is not excluded from exemptions;
- fully cashless payments, regardless of turnover, provided that:
- all payments are made via bank transfer or payment systems;
- transaction records clearly identify the buyer and the subject of the transaction;
- the activity does not belong to categories excluded from exemptions.
In such cases, no fiscal receipt is issued, but payment documentation must be retained.
3.When a cash register is always required
For certain types of activity, no exemptions apply – a cash register is mandatory from the first sale, regardless of turnover or payment method.
These activities are listed in the Regulation of the Minister of Finance of 17 December 2024 on exemptions from the obligation to record sales using cash registers (Journal of Laws 2024, item 1902), in particular § 4.
They include, among others: hairdressing and cosmetic services, catering, vehicle repair and servicing, car washes, passenger transport, and retail sale of certain goods (fuel, tobacco products, perfumes, etc.).
Key conclusion
The assumption that “payment to a bank account automatically exempts from a cash register” is incorrect.
The decisive factors are the type of activity, the status of the buyer, and the ability to properly identify the transaction – not the payment method itself.
In most cases, unregistered activity may operate without a fiscal cash register, but only if statutory exemptions are applied correctly. In practice, errors in applying these exemptions are one of the most common sources of disputes with tax authorities.
Income and expense records under unregistered activity – minimum requirements
Unregistered activity does not require keeping a KPiR, but it must record:
- the amount of income received;
- the date of receipt;
- the document confirming the transaction (invoice, transfer confirmation, etc.).
Records may be kept in any form (Excel file, table, ledger).
This recordkeeping is mandatory and forms the basis for determining annual income.
PIT and taxation of unregistered activity
(Articles 20(1b) and 45 of the PIT Act)
Income from unregistered activity is classified as “other sources”, not as business income. Taxation rates:
- 12% up to PLN 120,000 annual income;
- 32% above PLN 120,000.
Expenses directly related to the activity may be deducted if properly documented.
Reporting specifics:
- no advance tax payments;
- income is declared in PIT-36;
- filing deadline: 30 April of the following year.
Unregistered activity does not constitute grounds for ZUS registration and does not generate health insurance coverage. Contributions are payable only under other titles (employment contract, contract of mandate, voluntary insurance, etc.).
Liability for violations under unregistered activity
As long as the activity remains within statutory limits, unregistered activity is legal and permissible. However, even a formal breach of these limits automatically triggers liability mechanisms under administrative, tax, and fiscal-criminal law.
Administrative liability
The key provision is Article 60¹ §1 of the Code of Petty Offences, which applies where business activity is conducted without required registration or permits, including:
- lack of CEIDG entry;
- lack of entry in a regulated activities register;
- absence of required concession or permit.
The penalty may include a fine or restriction of liberty.
The fine may range from PLN 20 to PLN 5,000, with the exact amount determined based on the nature, duration, and circumstances of the violation.
Additional consequences may include orders to register activity, tax reassessments, fiscal penalties, or further sanctions where special permits are required.
Fiscal-criminal liability
Fiscal-criminal liability arises only where tax obligations are breached, such as failure to file PIT returns, income concealment, or failure to keep mandatory records after losing the right to unregistered activity or entering the VAT regime.
Relevant provisions include, inter alia, Articles 54 and 60 of the Fiscal Penal Code.
VAT-related violations
Unregistered activity usually benefits from VAT exemption. Liability arises only where exemption is applied without legal grounds or VAT obligations are not fulfilled. VAT liability does not arise “because of unregistered activity”, but due to incorrect entry into the VAT regime.
Final conclusion
Unregistered activity is not a simplified liability regime.
It merely limits formal obligations but does not eliminate tax or sanction-related liability if statutory limits are exceeded or legal requirements are breached.
Ukrainian version of this article
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