Cash Payment Limit for Sole Proprietorship (JDG) in Poland in 2026 — 15 000 zł and NKUP

Paid a contractor in cash for an invoice above 15 000 zł? That expense is not a deductible expense (KUP). The cash payment limit is one of the easiest traps to overlook in a sole proprietorship (JDG) — and one of the most expensive in consequences.

We explain how the 15 000 zł limit works (Art. 22p of the income tax (PIT) Act), which transactions it covers, what the exceptions are, and what to do when you've already paid in cash.

The 15 000 zł Limit — Legal Basis

Under Art. 22p sec. 1 item 1 of the PIT Act (Dz.U. 2026 item 592 t.j.) and Art. 19 of the Entrepreneurs' Law Act, entrepreneurs may not include in deductible expenses (KUP) the portion of a payment relating to a transaction between entrepreneurs with a value above 15 000 zł that was settled in cash.

The limit applies to the one-time value of a transaction — regardless of the number of resulting payments. You cannot circumvent the rule by splitting the payment into several smaller transactions.

Who Is an Entrepreneur for This Limit

The limit applies to transactions where both parties are entrepreneurs (persons conducting business activity). A purchase from an individual not conducting business activity is not subject to the limit — even if the value exceeds 15 000 zł.

Transactions with foreign entrepreneurs are also subject to the limit.

How the KUP Exclusion Works

If a transaction between entrepreneurs with a value above 15 000 zł is paid in cash:

• the entire amount paid in cash is excluded from KUP (not just the excess above 15 000 zł),
• for an active VAT taxpayer — the net amount is excluded,
• for a VAT-exempt taxpayer — the gross amount.

If part was paid in cash and part by bank transfer — only the cash portion is NKUP.

Example 1: Full Cash Payment

You buy equipment for 20 000 zł net + 4 600 zł VAT = 24 600 zł gross. You pay in cash.

• KUP: 0 zł (the entire transaction is above 15 000 zł, paid in cash),
• VAT: deductible (the right to deduct VAT does not depend on the form of payment),
• Result: you lost 20 000 zł of cost deduction — tax higher by 20 000 × 12% = 2 400 zł on the tax scale.

Example 2: Partial Cash Payment

You buy the same equipment for 24 600 zł gross. You pay 10 000 zł in cash, 14 600 zł by transfer.

• KUP from this transaction: 0 zł — because the transaction exceeds 15 000 zł, any cash payment is NKUP, even 10 000 zł,
• VAT: fully deductible.

Fixed Assets and the Cash Limit

The 15 000 zł limit also applies to the purchase of assets classified as fixed assets. If an entrepreneur paid in cash for a fixed asset and the transaction value exceeded 15 000 zł:

• depreciation write-offs cannot be included in costs (neither as a one-time deduction nor over time),
• KUP must be corrected if depreciation has already begun.

What to Do After Exceeding the Limit

Cost Correction

Under Art. 22p sec. 2 of the PIT Act, an entrepreneur who has included in costs an expense paid in cash above the limit must:

1. Reduce KUP by the incorrectly recognized amount — in the month in which the violation was identified,
2. If the expense related to a fixed asset — correct the depreciation write-offs.

Bank Transfer Payment After Cash

If the entrepreneur settled the transaction in cash and then returned the cash and paid by bank transfer, KUP can be restored. The Ministry of Finance confirms that a final payment by bank transfer removes the ground for exclusion — but this requires documentation of the refund and the subsequent payment.

Exceptions to the Limit

Transactions with Individuals Who Are Not Entrepreneurs

Purchasing a car, equipment, or goods from a private individual not conducting business activity — the 15 000 zł limit does not apply. You can pay any amount in cash and include the expense in KUP (provided the general conditions for deductibility are met).

Cash Withdrawals (Representation Costs, Per Diems)

Cash withdrawals from the company cash register that are not transactions between entrepreneurs (e.g., employee per diems, travel allowances) are not subject to the limit.

Pitfalls

1. Splitting transactions — you cannot split a purchase into two invoices of 8 000 zł each to avoid the limit. The rule refers to the one-time value of the transaction.
2. Cash payment to an account — depositing cash into the seller's account (at a bank or post office) is treated as a payment via a payment account, so the limit does not apply.
3. Framework agreement — for framework agreements with recurring deliveries, the limit is assessed for each delivery separately, but only if they are independent transactions.
4. Fixed asset — forgetting to correct depreciation after exceeding the limit is a serious error. Tax authorities check this during audits.
5. VAT vs. KUP — the right to deduct VAT exists regardless of the form of payment. Even with NKUP, VAT can be deducted. But without the PIT cost deduction, VAT is the only benefit.

FAQ

Does the 15 000 zł limit apply to transactions with a private individual?

No. The limit applies only to transactions between entrepreneurs. A purchase from an individual not conducting business activity is not subject to the restriction.

Can VAT be deducted on an invoice paid in cash above 15 000 zł?

Yes. The right to deduct VAT does not depend on the form of payment (Art. 86 sec. 1 of the VAT Act). But the expense does not enter KUP.

Does a cash deposit to the seller's account count as cash?

No. A cash deposit to the seller's payment account (at a bank, post office) is treated as a payment via a payment account.

Does the limit apply to leasing?

No. Leasing installments are paid by bank transfer under the agreement. The limit applies to one-time transactions, not installments.

What if I paid in cash and already recorded it in the tax revenue and expense book (KPiR)?

You must correct KUP — reduce costs in the month in which the violation was identified. If it concerns a fixed asset, correct the depreciation write-offs.

Sources

• PIT Act — Art. 22p sec. 1 and 2 (Dz.U. 2026 item 592 t.j.)
• Entrepreneurs' Law Act — Art. 19 (Dz.U. 2024 item 575 t.j.)
• MF / Gofin — tax consequences of cash payments above 15 000 zł

Need Help with Costs in a JDG?

Oxyok maintains the KPiR and helps avoid cost-related errors — from 49 zł + VAT per month.

Write to Paweł or see Oxyok accounting.

This material is for informational purposes. Individual tax situations require analysis.