🔄What is barter?‍

Barter is a form of exchange in which no cash changes hands—both parties provide services or goods in return. For example:

• A company may send a gaming headset to an online creator in exchange for a product review or placement.
• A VTuber may receive a free 3D model in return for promoting the model artist during streams.
• An influencer might get a free hotel stay in exchange for an Instagram post.

While these are non-cash transactions, tax and accounting regulations treat them as standard business transactions. A barter deal requires a proper agreement where both parties act as seller and buyer. Each side must document the transaction in their accounting records by issuing an invoice—the provided service or product is revenue, and the received benefit is a cost.

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⚖️Barter and Tax Law – obligations for both parties

‍Although barter is often seen as informal, tax regulations recognize it as a legitimate commercial transaction with full legal and tax consequences for both parties.

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1. For entrepreneurs (e.g., sole proprietors such as creators):
When entering into a barter agreement, the creator is obligated to issue an invoice—with or without VAT, depending on whether they’re VAT-exempt. This transaction must be reported in their revenue records (for both PIT and potentially VAT purposes), and the income must be taxed like any other sale.

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2. For the other party (e.g., sponsoring company):
A company providing goods or services must also issue an invoice for its deliverables, account for VAT accordingly, and recognize the cost in its accounting.

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Barter is not just marketing—it’s a taxable business transaction. Proper documentation and accounting are crucial. Our accounting firm actively supports creators and businesses in correctly handling barter agreements.

🧾How to issue an invoice for a barter transaction?

In a barter arrangement, each party issues an invoice reflecting the value of their contribution—even though no payment is made. These transactions are still fully subject to tax obligations.

Example:

CompanyX provides a VTuber with a microphone worth PLN 1,000 (net).In return, the creator produces a review and promotes the product on their platforms.

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Key rules for barter transactions:

• Both parties must record the issued invoices as revenue/sales.
• PIT and VAT must be settled just like for a standard cash transaction.
• No cash transfer does not exempt you from tax—the value of the service or product is the taxable base.
• Barter is a legitimate form of business and requires formal documentation—ensure your invoices and accounting entries are correct.

If you’re unsure, our accounting office will gladly support you!

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‍💡How to value a barter transaction?

Barter cannot be valued arbitrarily—specific tax rules apply. The value of the transaction is based on the market value of the goods or services at the time they are provided.

As stated by the Director of the Tax Chamber in Bydgoszcz in an individual tax ruling: “The goods or services exchanged in a barter agreement should have equal value—not necessarily exactly market-based, but aligned with the purpose of the agreement.”

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Example:
If a company gives you equipment worth PLN 2,000 (gross), your income from the service provided is also PLN 2,000.
You cannot lower this amount or set your own arbitrary value.
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Remember: even barter requires fair valuation and proper documentation. If you need help, our firm will assist in determining the value and settling everything correctly.

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✅How to safely and legally account for barter transactions?

1. Draft a Barter Agreement
The contract should clearly define:

• the scope of services from both sides,
• the market value of each deliverable,
• performance deadlines, and
• a note stating that this is a non-cash settlement.

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2. Issue an Invoice (or Bill)
If you're a business owner – issue a standard VAT invoice (or VAT-exempt if applicable) and include a note like “barter transaction”.
If you’re an individual – a well-drafted agreement and reporting the income in your PIT return (e.g., as income from other sources) is sufficient.

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3. Record the Income in Your Accounting
Lack of a bank transfer does not mean lack of revenue—the service or product received is still taxable income.
For VAT payers – this also creates a VAT obligation.

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In a barter transaction, both parties receive a financial benefit, simultaneously acting as supplier and buyer.
Even without money changing hands, mutual performance is taxable under both VAT and PIT (or CIT).

In practice – if both parties are VAT payers, they can:

• report output VAT on their invoice, and
• deduct input VAT from the invoice received.

This can be efficient—but only if well-documented.
If you want to be sure everything is settled correctly, our accounting firm will gladly assist you.

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‍Starting a barter collaboration and unsure how to issue invoices or settle taxes properly? Contact us. As an experienced accounting firm, we’ll help you accurately account for all such operations and ensure compliance with tax regulations.

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