Cash payment limits - changes from 1 January 2024

On 18 August 2022, Article 2 of the Act of 5.08.2022 amending the Mortgage Credit Act and the Supervision of Mortgage Credit Intermediaries and Agents and the Act amending the Personal Income Tax Act, the Corporate Income Tax Act and certain other acts became effective.

Under the new provisions, as from 1 January 2024 a lower cash payment limit for businesses will apply.

Cash payment limit in 2024 - changes for entrepreneurs

On 1 January 2024, the regulations assuming a reduction in the one-off value of a cash transaction between businesses from the current PLN 15 000 to PLN 8 000 will come into force.

For transactions in foreign currencies, to convert their value one will use the average exchange rate of foreign currencies announced by the National Bank of Poland on the last working day preceding the day of the transaction.

Moreover, to encourage companies to switch to cashless payments, the legislator has provided a PIT and CIT relief for entrepreneurs. The relief is for an entrepreneur who has purchased a payment terminal, incurred expenses on this account, as well as the expenses for processing payment transactions using the purchased terminal.

In addition, it is important for companies that the legislator has not provided for sanctions if an entrepreneur violates the provisions requiring compliance with cash turnover limits. However, an entrepreneur who ignores the provision will lose the right to include the incurred expense as a deductible cost.

Cash payment limit in 2024 - changes for consumers

On 1 January 2024, a cash payment limit will also apply for transactions between a consumer and a trader, a limit of up to PLN 20 000.

It should be emphasised that, according to the regulations, if a single transaction involves several payments, but the total value of the transaction exceeds PLN 20,000 or the equivalent amount, then we have a single transaction value to which the limit applies.

Non-cash payment at a place of business

The legislator has also introduced provisions according to which an entrepreneur is to provide for cashless payments at each place of business, for example:

• headquarters, company premises,
• off-premises,
• in a vehicle used for the provision of passenger transport services.

This obligation does not apply to entrepreneurs, listed in the VAT Act, who are exempt from the obligation to keep records of sales with the use of cash registers.

Non-cash payments are gaining importance

The Polska Bezgotówkowa Foundation commissioned a consumer survey on the payment habits of Poles. The results of the survey "Payment habits and the development of card acceptance networks in Poland" show the growing popularity of cashless transactions in Poland. The share of non-cash payments in the number of transactions conducted at commercial and service points in 2021 increased by 3 pp. (57%) compared to 2019 (54%). Moreover, one in four respondents (22%) admitted using mobile contactless payments using NFC technology.