VAT exemption for eldercare: no turnover limit

If you've just registered an eldercare business in Poland, you've probably heard about the 200k PLN VAT exemption threshold. Most accountants start there. But for eldercare, that threshold doesn't apply.

Two types of VAT exemption

Polish VAT law has two independent exemption mechanisms:

1. Subjective exemption (Art. 113(1)) — applies to anyone under 200k PLN annual turnover. This is a small-business exemption, not industry-specific.

2. Objective exemption (Art. 43(1)(23)) — applies to specific social care services, including eldercare at the client's residence. This exemption is absolute — it applies regardless of turnover.

If your care services qualify under Art. 43(1)(23), you're VAT-exempt from the first złoty and you don't lose it after crossing 200k PLN.

What qualifies?

The exemption covers social care services provided by individuals running a business, including:

• Eldercare at the client's home
• Assistance to persons with disabilities
• Care services within the framework of social assistance

The key is that the service must fall within the definition of social care under the Polish Social Assistance Act — not be a generic "companionship" or "cleaning" service.

What to put on your invoice

This is the most common mistake at the start. An invoice with "zw" (exempt) rate and an empty legal basis field looks suspicious to the tax office. On your first invoice, write:

VAT exemption: Art. 43(1)(23) of the Polish VAT Act

This keeps your documentation clean from day one.

The trap: working through a foreign agency

If you work through a German or Dutch care agency (Promedica24, Carework, etc.), there's an additional formality:

• Your eldercare services remain VAT-exempt
• But the agency's commission is an import of services — must be reported as reverse charge
• VAT-UE registration is required (even if you're not a regular VAT taxpayer)

This doesn't mean you pay VAT. It means you register as a VAT-UE taxpayer solely for import-of-services purposes — a different registration from regular VAT.

Summary

1. Art. 43(1)(23) exemption has no turnover limit — you don't lose it at 200k PLN
2. Write the legal basis on invoices — "Art. 43(1)(23) of the VAT Act"
3. Foreign agency work = VAT-UE registration — even if your services are VAT-exempt

Legal basis and interpretations

Polish VAT Act — Dz.U. 2025 poz. 775 (consolidated):

• Art. 43(1)(23) — objective exemption for social care services (absolute, no turnover limit)
• Art. 113(1) — subjective exemption up to 200k PLN (for other businesses)
• Art. 28b — place of supply (reverse charge for import of services)

Social Assistance Act — Dz.U. 2025 poz. 163 (consolidated) — defines the scope of social care services that qualify under Art. 43(1)(23).

Individual interpretations — The Director of the National Tax Information (KIS) has repeatedly confirmed that eldercare services provided by a sole proprietor at the client's residence fall under the Art. 43(1)(23) VAT exemption, regardless of turnover. Current interpretations can be found in EUREKA — the Ministry of Finance interpretation database (search: "opieka VAT 43" or "pomoc społeczna zwolnienie").

Note: Individual interpretations protect only the taxpayer who requested them — they are not universally binding. But they confirm the KIS's consistent interpretative line.

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I run accounting for sole-proprietor care businesses. If you have questions about VAT, ZUS, or PIT in eldercare — get in touch or book a call. First month free.