Lump-Sum Tax (Ryczałt) for Construction Services in Poland (2026)

5.5% Rate — Specialized Works

PKWiU 43 (specialized construction works):

• 43.11 — demolition and site preparation
• 43.12 — earthworks
• 43.13 — test drilling and boring
• 43.21 — electrical installations
• 43.22 — plumbing, water, and gas installations
• 43.29 — other installations
• 43.31 — plastering
• 43.32 — finishing works in insulation
• 43.33 — parquet, flooring, and wall coverings
• 43.34 — painting and glazing
• 43.91 — roofing and finishing works

8.5% Rate — General Construction Works

PKWiU 41-42:

• 41.10 — building construction
• 42.11 — roads and motorways
• 42.12 — railways and tracks
• 42.13 — bridges and tunnels

The Construction Materials Problem

In construction, services often include materials (cement, bricks, tiles). How do you settle this on lump-sum tax (ryczałt)?

Option 1: Everything as a Service (8.5% or 5.5%)

If the material is built into the service price — the whole amount is a construction service.

Example: painting a room for 2,000 zł (paint included) → 5.5% lump-sum tax (ryczałt) on 2,000 zł.

Option 2: Selling Materials Separately (2%)

If the material is a separate line item on the invoice — the sale of materials is 2% lump-sum tax (ryczałt).

Example:

• Materials (paint, brushes): 500 zł → 2%
• Labor (painting): 1,500 zł → 5.5%

Which Option to Choose?

It depends on the ratio of materials to labor:

• If materials are <50% of the price — Option 1 (simpler)
• If materials are >50% of the price — Option 2 (lower tax)

VAT in Construction Services

Reverse Charge (B2B)

B2B construction services are subject to reverse charge. The buyer settles the VAT.

VAT Rates (B2C):

• 23% — standard rate for construction services
• 8% — certain finishing works (until 31.12.2027)

Settlement Example

Scenario: B2C bathroom renovation, 8,000 zł gross

Option 1 (everything as a service):

• Revenue: 8,000 zł / 1.23 = 6,504 zł net
• Lump-sum tax (ryczałt) at 5.5%: 6,504 × 5.5% = 358 zł

Option 2 (split materials/labor):

• Materials: 4,000 zł net → 2% = 80 zł
• Labor: 2,504 zł net → 5.5% = 138 zł
• Total: 218 zł (vs 358 zł in Option 1)

The split saves 140 zł. But it requires accurate material records.

Most Common Mistakes

1. Wrong PKWiU

Specialized works (5.5%) vs general (8.5%). Check the exact code.

2. No Material Split

If materials are >50% — the split yields a lower tax.

3. Deducting Costs on Lump-Sum Tax (Ryczałt)

On lump-sum tax (ryczałt), you do not deduct material costs. All labor is taxed on the full amount.

4. Missing VAT Reverse Charge (B2B)

If you perform a B2B service — reverse charge is mandatory.

5. Confusing 8% VAT with 8.5% Lump-Sum Tax (Ryczałt)

8% VAT (on finishing works) is different from 8.5% lump-sum tax (ryczałt). Don't confuse them.

FAQ

Are construction materials 2% or 5.5%?

Depends: sold separately = 2%. Included in the service price = same as labor (5.5%).

Do B2B construction services have VAT?

Yes, but via reverse charge (the buyer settles the VAT).

Can I deduct materials on lump-sum tax (ryczałt)?

No. Lump-sum tax (ryczałt) has no cost deduction. Materials increase revenue.

Is painting 5.5% or 8.5%?

5.5% (PKWiU 43.34 — painting).

Need Help with Construction Accounting?

I run sole proprietorship (JDG) accounting for construction businesses — lump-sum tax (ryczałt), Polish classification of goods and services (PKWiU), material splitting, and VAT. From 49 zł + VAT per month.

Reply to [email protected] or visit oxyok.com/pl.

Note: Construction services on lump-sum tax (ryczałt): specialized works (PKWiU 43) = 5.5%, general works (PKWiU 41-42) = 8.5%. Materials: sold separately = 2%, included in service price = labor rate. Before making a decision, consult an accountant.