Lump-sum Tax

Certain taxpayers engaged in specific types of business activity may choose the lump-sum tax on recorded revenue (ryczałt) as their form of taxation. In such cases, there is no requirement to maintain a Revenue and Expense Ledger (KPiR), because the tax base is revenue — without deducting the costs of earning it. Only a revenue register is kept.

Choosing the lump-sum tax as the form of income taxation does not preclude registration as an active VAT payer — these are two separate, non-exclusive taxes. If an entrepreneur taxed under the lump-sum system is also an active VAT payer, collecting cost invoices remains important for VAT settlement purposes, even though it is irrelevant for income-tax purposes.

If, however, the entrepreneur taxed under the lump-sum system is not an active VAT payer, collecting cost invoices is pointless from a tax-settlement perspective (except for purchase invoices for goods in the case of trading activities).

Choosing the lump-sum tax also affects the way social-insurance (ZUS) contributions are calculated. In 2026, depending on the declared revenue level, the monthly health-insurance contribution may amount to PLN 498.35, PLN 830.58 or even PLN 1,495.04.