Payment terminal tax deduction in PIT — in Poland (2026)

A payment terminal is a cost you know — you put it in expenses and that's it. But recently you have an additional option: deduct terminal expenses once more, directly from income (or revenue on the lump sum). This is the so-called payment terminal deduction under Art. 26hd of the PIT Act.

In this article we break it down: who's eligible, how much, which expenses qualify, and how the deduction coexists with the standard cost deduction in the KPiR.

Limits table — how much can you deduct?

The deduction amount depends on whether you're exempt from the obligation to use a cash register, and whether you use the 15-day VAT refund period.

| Taxpayer situation | Annual deduction limit | |---|---| | Exempt from the obligation to use a cash register | up to 2500 zł | | Others (using a cash register) | up to 1000 zł | | Small taxpayer entitled to 15-day VAT refund (≥ 7 months or ≥ 2 quarters) | 200% of expenses incurred, max 2000 zł |

The 200% option applies to small taxpayers who, for at least 7 months (or two quarters), have been entitled to the accelerated, 15-day VAT refund. They can deduct double the value of terminal expenses, up to a maximum of 2000 zł per year.

Who qualifies for the deduction?

The deduction is available on three taxation forms:

• tax scale (general rules, PIT-36),
• flat tax (PIT-36L),
• lump sum on recorded revenue (PIT-28).

On the tax scale and flat tax you deduct from income. On the lump sum — from revenue.

Does not apply to the tax card (PIT-16A). The tax card has a completely different structure and does not provide for deductions of this type.

An important boundary condition: the deduction is not for unregistered business activity. To use it, you must run a registered business.

Time window — when can you deduct?

The deduction applies in the year you start accepting payments by terminal and in the following year. So you have two years to fully use the limit.

Blocking condition: you cannot use the deduction if, in the 12 months preceding the new start of accepting payments, you already accepted payments by terminal. The "cooling-off" period resets every 12 months — if you had no terminal for a year, you can apply anew.

Which costs qualify for the deduction?

The scope is deliberately narrow:

• purchase of a payment terminal (hardware),
• rental or leasing fees for the terminal.

Not included: transaction fees (commissions for payment processing), subscription fees for add-on services, operator fees for the transfers themselves, fees for online payment gateways. Only hardware and fees for its provision.

How does the deduction work with KUP?

This is the most common source of mistakes. The deduction does not take away your right to deduct the same expense as a deductible cost (KUP).

The mechanics work like this:

1. You normally enter the terminal (or leasing installment) in the KPiR in column 13 — as a deductible cost. This lowers your income.
2. Additionally, in your annual return, you deduct the same amount from income under the Art. 26hd deduction — within the annual limit.

So the same expense lowers your income twice: once as a cost, a second time as the deduction. This is intentional — the legislator wanted to genuinely encourage cashless payment methods.

On the lump sum, the mechanics are analogous: you enter the deduction amount directly in the deductions-from-revenue field in PIT-28.

Calculation example

Assume: you run a business under the tax scale, you're exempt from the cash register, in 2026 you bought a terminal for 1200 zł net and pay 80 zł net monthly for rental (960 zł for the year).

Step 1 — cost in the KPiR:

• Terminal: 1200 zł
• Annual rental: 960 zł
• Total KUP: 2160 zł

This lowers your income by 2160 zł.

Step 2 — Art. 26hd deduction:

You additionally deduct 2160 zł from income, staying within the 2500 zł limit for those exempt from the cash register. Income is reduced by a total of 4320 zł (2160 KUP + 2160 deduction).

At a 12% rate in the first bracket, the tax saving is approx. 518 zł. Over a year that's a noticeable saving — and you'd need the terminal anyway to accept card payments.

Exceeding the limit: if in the same year terminal expenses exceeded 2500 zł, you deduct only up to 2500 zł. The rest still goes in as KUP — the limit applies only to the deduction, not to the cost.

Small taxpayer with 15-day VAT refund

Here the mechanics are even better: you deduct 200% of expenses incurred on the terminal, up to 2000 zł per year.

If you spend 800 zł on a terminal in a year, you deduct 1600 zł (2 × 800). The 2000 zł limit means the deduction stops growing at an expense of 1000 zł (2 × 1000 = 2000).

Condition: for at least 7 months (or 2 quarters) you have used the right to a VAT refund within 15 days of filing the declaration. This is a right for small taxpayers (Art. 103 sec. 4a of the VAT Act).

What to watch out for in practice

• Two years, not three. The deduction is only in the startup year and the following year. A third year no longer counts, even if the limit wasn't fully used.
• 12-month cooling-off. If you switched terminal operators and already had a terminal before, the deduction doesn't renew — a full year without a terminal must pass.
• Unregistered business is out. The deduction requires a business NIP number.
• Don't confuse with the cost. First book as KUP normally, then claim the deduction. Not the other way around.
• Keep invoices. You must prove the limit and expense eligibility on request from the Tax Office (US) — the terminal and rental fees on invoices with a specific description.

When is it worth using?

The deduction makes sense especially when:

• you're just introducing a terminal to your business (or returning after a year's break),
• you're exempt from the cash register (the 2500 zł limit is higher),
• you're on the tax scale or flat tax and have income to reduce,
• you use the 15-day VAT refund — here the deduction is most worthwhile (200%).

On the lump sum it's worth it if you pay a high rate — the deduction from revenue brings savings proportional to the rate.

Sources

Based on Polish tax regulations.