PKD for consulting activities and VAT exemption


When registering a business, I introduced the PKD code covering advisory services. In fact, however, I am an electrical designer and do not make any advice related to it. Does such a range of PKD mean that I have to pay VAT on invoices that I issue? Am I not entitled to VAT exemption, even though I did not exceed the limit of PLN 200,000?

Michał, Kąty Wrocławskie


Performing activities understood as consultancy automatically excludes the possibility of using the VAT exemption, regardless of the amount of turnover generated from the activity. The exclusion, however, is not caused by the registration of the activity itself - the provision of advisory services in the PKD registration application. In this regard, the activities actually performed as part of the services provided by you are of importance. Therefore, if the activities performed by you are not consultative, the VAT exemption would apply until the turnover exceeds PLN 200,000, unless you have already registered as an active VAT taxpayer by submitting a VAT-R application to the office.

On October 22, 2012, the Director of the Tax Chamber in Warsaw issued an individual ruling (IPPP2 / 443-979 / 12-2 / KOM) in a similar case:

The taxpayer planned to extend the scope of the registered (...) business activity to perform the functions of an investor's supervision inspector and construction manager (PKD 71.12.Z - Engineering activities and related technical consultancy), therefore he applied for an individual tax interpretation, because he was actually only doing engineering, not consulting.

The tax authority's response ended with the following words:

If the Applicant performs, as part of his business activities, activities consisting solely in performing the function of an investor's supervision inspector or construction manager in accordance with the Construction Law, and unless he actually performs and does not intend to perform any activities, the essence of which is any type of consulting (engineering, technical or other), then the Applicant will be entitled to benefit from the subjective exemption from tax on goods and services provided for in Art. 113 paragraph. 9 of the Act - admitting the taxpayer was right as to his position, in which he indicated that the activities actually performed by him do not constitute consultancy, despite the so defined PKD of economic activity.