Guide · Glossary

Accounting and tax glossary

The key accounting and tax terms explained in plain language. If one of these terms is keeping you up at night, at Luno-Group we will explain it and take the matter off your hands.

Accounting firm (biuro rachunkowe)

A firm that professionally handles the bookkeeping and tax settlements of entrepreneurs. At Luno-Group this is done by a team of experienced accountants, fully online.

Bookkeeping (ksiegowosc)

The recording of a company's economic events (income, costs, taxes). It may be simplified (KPiR, lump-sum tax) or full (statutory books of account).

KPiR

The tax book of revenue and expenditure (podatkowa ksiega przychodow i rozchodow) - a simplified form of bookkeeping in which you record income and costs. Used under the tax scale and flat tax.

Lump-sum tax on recorded revenue (ryczalt)

A simplified form of taxation in which you pay a percentage of revenue without deducting costs. Rates depend on the type of activity (from 2% to 17%).

Tax scale (skala podatkowa)

Taxation under general rules: 12% up to PLN 120,000 of income and 32% on the surplus, with a tax-free amount of PLN 30,000.

Flat tax (podatek liniowy)

A form of taxation at a fixed rate of 19% regardless of the level of income, without a tax-free amount and without most reliefs.

CIT

Corporate income tax - paid by, among others, limited liability companies (sp. z o.o.). The basic rates are 9% (small taxpayers) and 19%.

PIT

Personal income tax - paid by, among others, entrepreneurs running a sole proprietorship.

VAT

Value added tax (tax on goods and services). Up to a limit of PLN 240,000 in annual sales (from 2026) you may use the subjective exemption.

VAT-UE

Registration for intra-Community transactions - needed when trading in goods and services with companies from other EU countries.

VAT OSS

A procedure in which a single return settles the VAT due in other EU countries - including on intra-Community distance sales of goods (WSTO) and on services for consumers in the EU. As long as your combined distance sales of goods and telecommunications, broadcasting and electronic services to all EU countries do not exceed EUR 10,000 (PLN 42,000) - in neither the current nor the previous year - you settle the VAT in Poland; once the threshold is exceeded, the VAT is due in the consumer's country: through OSS or through VAT registration in that country.

KSeF

The National e-Invoicing System (Krajowy System e-Faktur) - a government platform for issuing and receiving structured invoices. All taxpayers have been receiving invoices in KSeF since 1 February 2026, and they issue them from 1 February 2026 (gross sales above PLN 200 million in 2024) or from 1 April 2026 (all the others, including those exempt from VAT); where sales do not exceed PLN 10,000 gross per month, the obligation to issue invoices starts on 1 January 2027.

Invoice (faktura)

A document confirming the sale of a good or service, forming the basis for tax settlements.

Correcting invoice (faktura korygujaca)

A document that corrects an earlier invoice, for example in the event of a return, a discount or an error.

ZUS

The Social Insurance Institution (Zaklad Ubezpieczen Spolecznych). An entrepreneur pays social and health contributions; at the start they may use reliefs.

Health contribution (skladka zdrowotna)

A compulsory contribution towards health insurance. Its amount depends on the form of taxation and on income or revenue.

Start relief (ulga na start)

Exemption from ZUS social contributions (and from the Labour Fund and the Solidarity Fund) for 6 full calendar months - you pay only the health contribution; the month in which you start counts only if you start on the 1st day of the month. It is available for your first business activity or after a break of at least 60 months, and it does not cover work for a former employer within the scope of duties performed under an employment contract in the current or previous year.

Maly ZUS Plus

A preference allowing lower social contributions linked to income, available once conditions are met, including a revenue limit.

CEIDG

The Central Register and Information on Business Activity - the register in which you set up a sole proprietorship, online and free of charge.

KRS

The National Court Register (Krajowy Rejestr Sadowy) - a register of, among others, companies, foundations and associations.

NIP

The Tax Identification Number used by a company in its dealings with the tax office.

PKD

The Polish Classification of Activities - codes that define the type of business activity carried out.

PKWiU

The Polish Classification of Goods and Services - used, among other things, to determine the applicable lump-sum tax or VAT rate.

JDG

Sole proprietorship (jednoosobowa dzialalnosc gospodarcza) - the simplest form of running a business, set up in CEIDG.

Limited liability company (sp. z o.o.)

A separate legal entity; as a rule, the partners are not liable with their private assets. It keeps full books of account.

Estonian CIT

Lump-sum tax on company income - the tax is paid primarily when profit is distributed to the shareholders, but also on an ongoing basis on hidden profits and on expenses unrelated to business activity. It is available to companies that meet the statutory conditions, including having only natural persons as shareholders and meeting the employment requirements.

Depreciation (amortyzacja)

The gradual charging of the value of a fixed asset (e.g. equipment, a machine) to costs over time.

Fixed asset (srodek trwaly)

A company asset with an expected useful life of more than one year, e.g. a car, a machine, equipment.

Tax-deductible costs (koszty uzyskania przychodu)

Expenses incurred in order to generate revenue, which reduce the taxable base (under the tax scale and the flat tax).

Stocktaking (remanent / spis z natury)

An inventory of goods and materials as at a given day, used among other things to determine income at the year-end.

White list of taxpayers (biala lista)

A government register of VAT taxpayers with their account numbers. In a transaction with an active VAT taxpayer above PLN 15,000 the payment must go to an account from the register - otherwise you cannot treat the expense as a tax-deductible cost and you are jointly liable for your contractor's VAT, unless within 7 days of ordering the transfer you file a ZAW-NR notification with your tax office.

Split payment (MPP)

The split payment mechanism: the net amount goes to the seller's account and the VAT to a separate VAT account. Compulsory for certain transactions.

IP Box

A preferential rate of 5% on income from qualified intellectual property rights, e.g. copyright in software.

Full bookkeeping (pelna ksiegowosc)

Keeping books of account in accordance with the Accounting Act; compulsory for, among others, limited liability companies and after exceeding the revenue limit.