Registration of a sole proprietor under the simplified tax system for work in Poland

The work of Ukrainian specialists in Poland is increasingly carried out in the format of remote cooperation with foreign clients. In such conditions, one of the most convenient and beneficial tools for conducting activities remains the registration of a private entrepreneur (PE) under the single tax in Ukraine. This format allows for the optimization of the tax burden, simplification of accounting, and legalization of income while actually staying abroad.

At the same time, combining the status of a PE in Ukraine and residing in Poland requires consideration of a number of legal and tax nuances: determining tax residency, complying with the requirements of Polish and Ukrainian legislation, and properly formalizing contracts and financial transactions.

This article discusses the key aspects of registering and using a PE under the single tax for work in Poland: legal grounds, procedures, main risks, and practical recommendations for entrepreneurs conducting activities between two jurisdictions.

Choosing the optimal group of the single tax for working with Polish counterparties

When planning cooperation with companies from Poland, a key factor becomes not only the tax rate but also the requirements of counterparties regarding the status of your business. European partners often expect transparent reporting, the ability to enter into long-term contracts, and to receive closing documents formatted according to their internal procedures. Therefore, when choosing a regime, it is important to assess: the volume of expected income, the currency of settlements, the need for VAT registration, and the acceptable structure of expenses. For working with international clients, criteria such as the stability of tax conditions and minimal restrictions on types of activities are especially important.

• Income volume — correlate the planned revenue with the limits of the chosen group;
• Type of services — IT, consulting, marketing, and creative services are prioritized by Polish counterparties;
• Presence of VAT — clarify with the partner whether they need you to be a VAT payer;
• Currency and form of settlements — readiness to work on a cashless basis in EUR/PLN;
• Document flow — speed of issuing acts/invoices and the possibility of bilingual documents.

Step-by-step algorithm for registering an individual entrepreneur for cooperation with Polish companies

Start by preparing a basic set of documents: a valid international passport, identification code, Ukrainian phone number, and registration address. Then choose the appropriate NACE code focusing on IT services, marketing, consulting, or another type of remote service that Polish contractors usually request. Through the «Diia» portal or with a qualified electronic signature, submit an application to open an individual entrepreneur, while also selecting a simplified taxation system и the 3rd group of the single tax. When registering, immediately specify the rate with VAT or without VAT (most often, Polish companies only require a status without VAT if the work involves B2B services without complex import/export schemes). After confirmation of registration, obtain an extract from the State Register — this is usually requested by Polish partners as the first legal document.

The next block of steps is related to setting up document flow and finances. Open a business account in a bank with the possibility of currency receipts in euros and zlotys, and also connect internet banking with export of statements in PDF/CSV format — this will simplify proving the origin of funds in Poland. Prepare a basic package of templates:

• service agreement in two languages (Ukrainian/English or Ukrainian/Polish);
• act of completed work linked to the period and rate;
• invoice indicating the details of the individual entrepreneur and IBAN;
• personal data protection policy, if you work with user data.

For the convenience of coordination with the Polish side, structure the key information about your status as follows:

Tax risks and compliance requirements when working as an individual entrepreneur under the single tax in Poland

Working under contracts with Polish companies through an individual entrepreneur on a single tax requires special attention to evidence of the reality of activities and transparency of cash flows. Key control areas include the source of funds, documentary confirmation of services rendered, as well as the absence of signs of «fictitious entrepreneurship» or labor relations disguised as civil law contracts. It is critical to establish internal accounting, including storing contracts, acts, correspondence, and technical assignments, so that when requested by regulatory authorities, the economic essence of operations and the business purpose of cooperation with the Polish counterparty can be quickly confirmed.

To reduce risks, it is advisable to adapt tax and compliance processes in advance to the requirements of both Ukrainian and Polish legislation. In practice, this means implementing internal regulations and clearly separating personal and business expenses, as well as regularly monitoring changes in tax rules in both countries.

• Verification of counterparties: verification of the Polish company through registers, request for a basic package of founding documents.
• Compliance with single tax limits: control of turnover and types of activities to avoid losing the right to the simplified system.
• Correct determination of tax residency: analysis of the center of vital interests and days spent in Poland.
• Anti-money laundering procedures: fixation of the source of funds, verification of unusual payments and requests from the client.

Recommendations for drafting contracts and primary documentation with Polish partners

When preparing contracts with counterparties from Poland, it is important to agree in advance not only on the subject of the transaction but also on the tax status of the parties. Include in the contract text the details of the individual entrepreneur, indication of the tax system, and wording that each party is independently responsible for paying its taxes and contributions. Be sure to specify the applicable law and competent court, as well as the procedure for resolving disputes (for example, preliminary claim procedure). It is recommended to use bilingual templates (Polish/Ukrainian or Polish/English) and to verify terminology with a local accountant or lawyer.

• Accounts and acts — draft in a single style, with the same details of the individual entrepreneur and the Polish company, indicate the contract number and the period of service provision.
• Description of services — formulate briefly and unambiguously, avoid general phrases like «consulting services» without clarification.
• Currency and exchange rate — specify the currency of calculations (PLN, EUR) and the method of converting to hryvnia for accounting the income of the individual entrepreneur.
• Primary documents — keep scans with signatures and seals (when used in Poland), and systematize the originals by contractors and years.

We will draw conclusions

In conclusion, we note that registering as an FOP under the single tax for work in Poland requires careful preparation, understanding of the Ukrainian and Polish regulatory environment, as well as clear planning of further activities. A competent choice of the tax system, correct documentation, and compliance with the requirements of both Ukrainian and Polish legislation minimize risks and create a foundation for stable business operations.

Before making a final decision, it is advisable to consult with a specialized accountant or lawyer to consider the individual characteristics of your situation, the specifics of the services provided, and the requirements of clients in Poland. This approach will allow for the establishment of a transparent and sustainable work model, optimize the tax burden, and ensure legal protection for your entrepreneurial activities.