How Much Is My Sole Proprietorship (JDG) Worth? Business Valuation in Poland (2026)

There is no single method for valuing a sole proprietorship (JDG). The three most popular:

1. Multiplier method (EBITDA)

Value = average annual operating profit × multiplier.

• Multiplier: 2–4× for services, 4–6× for e-commerce, 1–3× for trade
• Example: profit of 150,000 zł/year × 3 = 450,000 zł business value

2. Income method (DCF)

Value = future cash flows discounted to today.

More precise, but complex. Used for larger transactions.

3. Asset-based method

Value = value of assets (equipment, inventory, fixed assets) − liabilities.

Used when the business has a lot of assets but little profit.

What is included in a sole proprietorship (JDG) valuation?

Intangible assets:

• Customer base — contracts, subscriptions, retention
• Brand — recognition, domains, social media
• Team — employees, know-how
• Contracts — long-term agreements with clients

Tangible assets:

• Fixed assets — vehicles, equipment, machinery
• Inventory — goods, materials
• Receivables — unpaid invoices
• Cash — funds in the business account

What is not included:

• Liabilities — unpaid invoices, social insurance (ZUS), Tax Office
• Loans and leases — must be repaid or assumed

Selling a sole proprietorship (JDG) — how does it work for tax purposes?

1. Sale of the enterprise (PCC-3)

If you sell the entire enterprise — the buyer pays PCC-3 (2% tax) on the market value.

Example: selling a sole proprietorship (JDG) for 300,000 zł → PCC-3 = 6,000 zł (paid by the buyer).

2. VAT on equipment

If you sell fixed assets with VAT — VAT is charged.

Example: selling a vehicle (registered with VAT) → VAT 23% on the value.

3. Income tax (PIT) on the sale

Selling an enterprise is income. On the tax scale / flat tax — income tax (PIT) on the profit (sale price − book value).

Tax strategies when selling

1. Selling assets instead of the business

Instead of selling "the whole business," you can sell individual assets:

• Selling a vehicle — VAT + income tax (PIT)
• Selling a customer base — income tax (PIT) (business income)
• Selling a domain — income tax (PIT)

This can result in a lower total tax.

2. Selling shares in a company

If you convert your sole proprietorship (JDG) into a company (LLC, limited partnership) — you can sell shares rather than assets.

• PCC-1 (1%) instead of PCC-3 (2%)
• No VAT on assets
• No income tax (PIT) on the transaction (tax only when dividends are paid)

3. VAT exemption

If you sell the entire enterprise (as an organized whole) — you can use a VAT exemption (Art. 6(1) of the VAT Act).

Pitfalls and most common mistakes

1. Missing PCC-3

If you sell a sole proprietorship (JDG) and don't file PCC-3 — fines + interest.

2. Forgetting about VAT on assets

Selling a vehicle, equipment — VAT is mandatory.

3. Low valuation

Many entrepreneurs sell too cheaply because they don't know the multiplier method.

4. Selling without a written agreement

The sale of a sole proprietorship (JDG) must be documented. Without a contract — problems with the Tax Office and social insurance (ZUS).

5. No consultation with an advisor

Selling a business is a complex transaction. Without a tax advisor, you lose money.

FAQ

How much does PCC-3 cost when selling a sole proprietorship (JDG)?

2% of the market value. Paid by the buyer.

Do I pay VAT when selling a sole proprietorship (JDG)?

If you sell the entire enterprise (an organized whole) — you can use the VAT exemption. If individual assets — VAT is mandatory.

Is selling a sole proprietorship (JDG) considered income?

Yes. Selling an enterprise is business income. On the tax scale / flat tax — income tax (PIT) on the profit.

Can I sell a sole proprietorship (JDG) without PCC-3?

No. PCC-3 is mandatory when selling an enterprise.

Is it better to convert to a company before selling?

Often yes. Selling shares in a company has lower taxes (PCC-1 1% instead of PCC-3 2%, no VAT on assets).

Need help selling your sole proprietorship (JDG)?

I handle accounting for sole proprietorships (JDG) — valuation, sale, PCC-3, tax optimization. From 49 zł + VAT per month.

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

Note: Sole proprietorship (JDG) valuation: multiplier method (2–6× EBITDA), income method, asset-based method. Sale: PCC-3 2% (paid by buyer), VAT on assets, income tax (PIT) on profit. VAT exemption when selling an organized enterprise (Art. 6(1)). Consult an accountant before making decisions.