Issuing invoices by individuals who do not carry on a business

Can a private individual issue an invoice? This is a question that regularly comes up amongst freelancers, small-scale service providers and people who earn money occasionally outside the scope of their business activities. The answer requires knowledge of tax regulations, an understanding of the different types of documents, and an understanding of the principles under which Polish law permits non-business entities to document sales.

Definitions and legal basis: when to use an invoice, when to use a receipt

In the Polish legal system, an invoice is a document confirming the sale of goods or services, which is of key importance for VAT settlements. Pursuant to Article 106b(1) of the VAT Act, the obligation to issue an invoice applies to entities carrying out taxable activities, i.e. VAT taxpayers. A VAT taxpayer – as specified in Article 15 of the VAT Act – may be a natural person, but only if they independently carry out economic activity within the meaning of that Act.

Economic activity within the meaning of the VAT Act encompasses not only a traditional business registered with the CEIDG, but also any activity carried out by manufacturers, traders, service providers, members of the liberal professions and even farmers. However, the activity must be of a continuous, organised and profit-making nature. Natural persons who do not meet these criteria are not VAT taxpayers and therefore cannot issue VAT invoices in their own name.

Who can issue a VAT invoice?

• A natural person running a registered business as an active VAT taxpayer (after submitting a VAT-R form to the tax office).
• An entity benefiting from a VAT exemption based on the entity or the goods/services – in which case they issue an invoice without VAT (stating the reason for the exemption).

Individuals who do not run a business, even if they occasionally provide services or sell goods, are not authorised to issue VAT invoices. Exceptions are made in specific situations, such as the sale of property, where the law requires VAT to be accounted for – but in such cases, the seller must register as a VAT taxpayer before the transaction takes place.

Invoices without a business – what is possible?

For individuals who do not run a business and are not registered as VAT taxpayers, the law provides for other forms of documenting sales:

• A receipt – a simplified document issued at the customer’s request, confirming a sale or the provision of a service.
• Invoice without VAT – a document issued by persons benefiting from a VAT exemption (either a subject-based or goods-based exemption), including those carrying out unregistered business activities.

Unregistered business activity is a specific form permitted by law – it is possible where monthly income does not exceed 75 per cent of the minimum gross wage, and the person has not carried out any business activity in the last 60 months. In such cases, receipts or invoices may be issued without VAT, without showing value added tax. This arrangement is often used by people providing small-scale services or selling items they have made themselves.

What documents can a private individual issue?

Receipt

A receipt is the basic form of documentation for a sale made by a person who is not running a business. It should include:

• The first name, surname and address of the seller and the buyer,
• The date of issue and the receipt number,
• A description of the goods or services, the quantity and the unit price,
• The total amount payable (in figures and words).

A receipt does not need to include a tax identification number (NIP), VAT rate or any specific notes. In the case of civil law contracts (contracts for services or specific-task contracts), a receipt may serve as the basis for payment of remuneration.

Invoice without VAT

Persons benefiting from a VAT exemption (e.g. those carrying out unregistered business activities) may issue an invoice without VAT. On such a document, the abbreviation ‘zw’ appears in place of the VAT rate, and in the case of a specific exemption, the legal basis must be stated (e.g. Article 43(1) of the VAT Act).

Electronic documents

Both a receipt and an invoice without VAT can be issued in electronic form, e.g. as a PDF file. For the document to be valid, its authenticity of origin, integrity of content and legibility must be ensured. The recipient’s consent to an electronic document may even be implied, e.g. by paying a receipt sent by email.

Documentation and tax obligations

When a private individual not carrying out business activities makes a sale or provides a service, they are not obliged to record this transaction on a cash register, provided they do not exceed certain limits or provide services in sectors subject to a mandatory requirement to use cash registers. In most cases, a sale is confirmed by a receipt or a VAT-free invoice at the purchaser’s request.

In the case of unregistered business activity, exceeding the revenue limit (75 per cent of the minimum monthly wage) triggers an obligation to register the business and enter the full tax regime, including the obligation to account for VAT (upon exceeding PLN 200,000 per year or upon voluntary registration).

When must a document be issued at the customer’s request?

If a customer (purchaser) requests a receipt or invoice within 3 months of the end of the month in which the service was provided or the goods were delivered, the seller is obliged to issue such a document. After this deadline, issuing a receipt or invoice is optional.

A receipt must be issued within:

• within 7 days of the service being provided or the goods being supplied (if the request for a receipt was made before the service was provided or the goods were supplied),
• within 7 days of the date the request was made (if the request was made after the service was provided or the goods were supplied).

A VAT invoice without a business name – is this even possible?

Polish law does not permit a natural person who is not carrying on a business to issue a VAT invoice in their own name and on their own account. This is clearly stipulated in the provisions of the VAT Act – only registered VAT taxpayers are authorised to do so. Issuing a VAT invoice without registering a business and without submitting the VAT-R form is illegal and may result in serious tax consequences, including a fine.

Exceptions – VAT invoices issued by an intermediary

However, there are market solutions that enable individuals to issue VAT invoices without setting up a business. For example, platforms such as Bizky or Useme act as intermediaries – they enter into a contract with a freelancer, issue the VAT invoice to the client themselves, and then pay the remuneration after deducting tax. In such a situation, the formal issuer of the VAT invoice is the intermediary, not the individual.

“Issuing VAT invoices without registering a business and without VAT taxpayer status constitutes a breach of tax law and may result in criminal tax penalties.”

Elements of an invoice for a natural person – what must the document contain?

An invoice issued to a natural person who does not carry out business activities should include:

• the date of issue,
• the serial number,
• the buyer’s full name and address (without a tax identification number),
• the seller’s full name (or company name) and address, and their tax identification number (NIP),
• the name of the goods/services, unit of measurement, quantity, net unit price,
• net value, VAT rate and amount (if applicable),
• total amount due.

In the case of VAT-exempt invoices, the requirement to state the VAT rate is replaced by the notation ‘zw’ or another indication of exemption. On an invoice issued to a private individual, it is not necessary to include the purchaser’s PESEL or tax identification number.

The most common errors and their tax consequences

Issuing a VAT invoice without the appropriate authorisation is a prohibited act and results not only in an obligation to pay the tax shown, but also in criminal tax liability. It sometimes happens that individuals unwittingly cross the line between unregistered activities and business activities, often as a result of regular or recurring orders.

Errors on an invoice (e.g. incorrect numbering, missing required details, incorrect VAT rate) may make it difficult for the purchaser to exercise their rights (e.g. making a complaint, returning goods) and to document the expenditure for tax purposes. In the event of an error, it is possible to correct the document (by means of a credit note or a corrective invoice).

Receipts and invoices in unregistered business activities – practical aspects

A person carrying out unregistered business activity should maintain simplified sales records. Receipts or invoices without VAT are issued at the customer’s request, and the documents may be kept in paper or electronic form. Income from this activity must be declared in the annual PIT return.

In the case of transactions settled in foreign currencies, the amounts on the receipt or invoice must be converted into zlotys at the average exchange rate of the National Bank of Poland (NBP) on the day preceding the receipt of the income.

Changes from 2026 – KSeF and e-invoices

From 2026, the mandatory National e-Invoice System (KSeF) will come into force. Smaller taxpayers will be subject to this obligation from 1 April 2026, whilst large businesses will be subject to it from 1 February 2026. B2B invoices will have to be issued via KSeF, whilst B2C invoices (for individuals not carrying out business activities) remain optional within this system.

The KSeF system requires every invoice issuer to have a tax identification number (NIP) – which, in practice, prevents individuals not engaged in business activity from issuing invoices themselves via this system.

Summary and expert recommendations

A natural person who does not carry out business activities and is not a VAT payer cannot issue a VAT invoice in their own name. In the case of occasional services or sales, it is possible to document the transaction with a receipt or a non-VAT invoice, particularly in the context of unregistered business activity. Exceeding the revenue thresholds or the nature of the business activity carried out makes it compulsory to register a business.

If a customer requires a VAT invoice, the only legal way to do so is to set up a business and register as a VAT payer, or to use the services of an intermediary that issues VAT invoices (e.g. platforms such as Bizky or Useme). Any attempts to circumvent the regulations may result in serious tax consequences.

Anyone considering selling goods or providing services on a regular basis should consider registering a business and choosing the appropriate tax regime. If in doubt, it is worth seeking assistance from an experienced tax adviser or an accountancy firm.