Prime Minister Donald Tusk Delivers on VAT Reduction Promise for Beauty Industry

In a press conference following a government meeting on Tuesday, Prime Minister Donald Tusk announced a significant step toward fulfilling one of the promises made by the Civic Coalition during the election campaign. The government is set to implement a reduction in the Value Added Tax (VAT) rate for the beauty industry, effective April 1 of this year.

The current VAT rate for beauty services stands at 23 percent, a figure deemed burdensome by industry professionals. The Civic Coalition, as part of its “100 specifics for 100 days” initiative, had pledged to address this concern. The proposed reduction aims to bring the VAT rate for the beauty industry in line with the lower rate of 8 percent applicable to hairdressing services.

Prime Minister Tusk, addressing the media, expressed the gravity of the issue, highlighting the impact on approximately 30,000 companies, the majority of which are small enterprises. Nearly 100,000 individuals are employed in this sector, making it a significant contributor to the workforce. Tusk stated, “I hope that this will bring relief and a sense of justice to a very large professional group,” emphasizing the importance of rectifying what was perceived as an unjust discrepancy in VAT rates between the beauty and hairdressing industries.

The decision wasn’t without its share of skepticism, with doubts arising after the disclosure of answers to MPs’ questions following Prime Minister Tusk’s announcement on December 12. Tusk acknowledged the significance of tax revenue for the state budget, cautioning that changes should be approached with care. However, Minister of Finance Andrzej Domański assured in a subsequent interview with the Radio Information Agency that efforts are underway to equalize VAT rates for beauty services.

As the April 1 implementation date approaches, the beauty industry anticipates a positive shift, providing relief to entrepreneurs who felt the weight of higher VAT compared to their counterparts in the hairdressing sector. The government’s commitment to addressing this issue underscores its dedication to fairness and economic support for a crucial segment of the professional landscape.