Limit on cash payments in Poland

According to the current state of the law in Poland, the limit of cash payments for entrepreneurs is 15 thousand PLN. gross. This limit applies to transactions in which another entrepreneur is a party. Transactions that exceed 15 thousand PLN should be settled using a payment account. This obligation stems from Article 19 of the Polish Business activity Act of March 6, 2018.

Making payments to the payment account in Poland

“Making or receiving payments related to the business activity shall be made through the payment account of the entrepreneur, whenever:

• another entrepreneur is a party to the transaction from which the payment results, and
• the one-time value of the transaction, regardless of the number of payments resulting from it, exceeds PLN 15,000 or the equivalent of that amount, with transactions in foreign currencies being converted into zlotys according to the average exchange rate of foreign currencies announced by the National Bank of Poland on the last business day preceding the day of the transaction.”

A payment account is understood to mean a bank account, SKOK (operative Savings and Credit Fund), card payment or through online platforms. In turn, one-time transaction value means the entire value of a claim or liability, expressed in money, which results from the delivery of goods or the provision of services for consideration between businessmen.

Making payments in cash

Companies transacting with each other are required to comply with the cash payment limit.

The cash payment limit does not apply to:

• entities other than entrepreneurs,
• flat-rate farmers,
• debt collectors,
• representative offices of foreign entrepreneurs,
• foreign enterprises, if they do not operate in the territory of Poland,
• entities entered exclusively in the register of associations, foundations, other social and professional organizations, independent public health care institutions,
• natural persons not engaged in business,
• entrepreneurs registered outside Poland, providing services in the territory of the Republic of Poland (under temporary cross-border provision of services).

Beginning in 2024 the cash payment limit in Poland will decrease from PLN 15,000 to PLN 8,000. The change was supposed to take place as early as 2023, but the final deadline was extended by a year. According to the Finance Minister, cashless payments are a necessary part of the modern digital economy in order to combat the shadow economy, including in countering so-called money laundering.

If the entrepreneur does not fulfill the obligation to make non-cash payments- he will not be entitled to include the incurred expense as a deductible expense.

Beginning in 2024, a cash payment limit for consumers will also take effect.. Until now, there were no restrictions on such transactions, being in any store we could pay cash for purchases made. Starting in 2024, the limit will be 20 thousand PLN. The change was originally scheduled to take effect from 2023, but was also postponed for another year.

Author: Agnieszka Bojar, Manager of the Accounting area at MDDP Outsourcing.