If you’re planning to sell goods or services in Poland and you’re unsure whether this format is right for you, take a moment to stop and read this. In this guide, we’ll dive into the concept of the “dewalnyus register” in Poland. You’ll learn about the criteria required to engage in this type of activity, the pros and cons of this form of work, as well as the special nuances and risks you may encounter in Poland. It’s important to understand that for some people, this format might be convenient, while others may find it easier to open a sole proprietorship or register a company in Poland.
What is the Dewalnyus Register in Poland?
The Dewalnyus Register, or non-registered activity in Poland, is a form of business that allows you to test the market without officially registering your activity. This means that you can start selling your products or services without having to register a business or sole proprietorship. At first, this may sound appealing, especially for beginners, but it’s important to understand how this works in practice and the limitations and requirements involved.
Criteria for Engaging in Non-Registered Activity in Poland
To be eligible for non-registered activity in Poland, you must adhere to the following criteria:
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No commercial activity in the past five years: If you haven’t engaged in any commercial activity over the past 60 months and are not listed as a beneficiary of any company, you can register for non-registered activity.
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Income Level: Your income from this activity should not exceed 50% of the minimum wage in Poland, which for 2023 is 1800 PLN per month.
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No licensing requirements: Your activity must not require mandatory licensing or permits. For example, you cannot engage in the sale of alcohol or transport services, which require licenses.
If you meet these three criteria, you are legally allowed to engage in non-registered activity in Poland.
Risks and Nuances of Non-Registered Activity in Poland
Despite the attractiveness of non-registered activity, it’s important to be aware of the risks:
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If your income exceeds 1800 PLN per month, you will automatically become a commercial entity and must register a business within 7 days. This is a critical point, as you’ll need to quickly adapt to Polish legislation.
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It’s also important to remember your tax obligations. Despite common myths, non-registered activity does not exempt you from paying taxes. You will need to pay income tax based on the “Skala” model, which is 12% of your net income.
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At the end of the year, you must submit an annual tax declaration.
Taxes and Financial Reporting in Poland
Here are some important points regarding taxes and reporting for non-registered activity:
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No ZUS payments: Under non-registered activity, you are exempt from paying ZUS (social insurance), which is a significant advantage.
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Income tax: You are required to pay income tax on your net profit, which also requires you to maintain records of your income and expenses.
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Annual Declaration: Anyone engaging in non-registered activity must submit an annual declaration, where you report your income, expenses, and net profit.
Frequently Asked Questions About Non-Registered Activity in Poland
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Do I need a work permit? If you’re a Ukrainian citizen, you generally won’t need a work permit when providing services under non-registered activity.
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How do I register for VAT? If your income exceeds 200,000 PLN per year, you will need to register as a VAT payer. However, for an income of 1800 PLN per month, this is not an issue.
Conclusion: Pros and Cons of Non-Registered Activity in Poland
In summary, non-registered activity in Poland has both advantages and disadvantages. The benefits include not needing to pay ZUS and the ability to maintain simplified accounting. On the other hand, there are many restrictions and conditions that you must adhere to in order to avoid legal issues. Given the complexity of the situation and the high risks, it might be worth considering other options, such as opening a sole proprietorship or registering a company in Poland, especially if you have partners and plan to grow a full-fledged business.
Important Advice
For those who decide to engage in non-registered activity, it is strongly recommended to consult with a professional — a legal or accounting firm — to avoid issues with the tax authorities and ensure compliance with Polish laws. Remember, running your business correctly in Poland is the key to your success.
