Ministry wants new VAT rates

The Ministry of Finance wants to simplify VAT rates. They have recently published a draft bill introducing changes to the act on value added tax of 11 March 2004. There are numerous goods will soon fall under a different tax rate. The goal is to make the VAT matrix clearer and fairer.


The VAT tax rates in Poland have been set at 23%, 8% and 5% ever since 2011. Nothing will change in this respect. However, the lawmakers want to make assignment of goods to rate groups more transparent and unified. The lower tax rates are to apply to a greater range of similar products. Today, taxpayers are often confused as to what tax rate they should use. For example, different amount of VAT is applied to types of bread products depending on their best before date. The same goes for local and exotic fruit.


Consumers will be happy to hear that prices of certain goods may soon drop due to lowered VAT. These include baby products, basic food items (including spices) and magazines. E-books are paper book will finally get the same treatment. In general, in case of similar products, the rule is to bring the rate down rather than up. A novelty is Current Rate Information that will state clearly what rate applies to what products or services.


The new VAT rate matrix is going to be introduced on the 1st of January 2020 with respect to most of the goods. However, in certain cases, like magazines and books, this will happen on the 1st of April 2019. Taxpayers will have a lot of time to get acquainted with the new tax rates and check what rate are correct for what they are selling.


The Ministry of Finance admits the rate matrix and the surrounding regulation we have today is bulky, complicated, and ineffective.