VAT rates in Poland affect the economy. There are several VAT rates and it is worth knowing them to avoid problems and unpleasant consequences. Below you will find an overview of VAT rates effective in 2024. We invite you to read.
VAT rates in Poland
The Act of 11 March 2004 on the tax on goods and services (the VAT Act) defines the principles of taxation. It also specifies VAT rates.
The current VAT rates in Poland are:
- 23% – standard VAT rate,
- 8%, 5% – reduced VAT rates,
- 7%, 4% – special VAT rates,
- 0% – preferential VAT rate.
Standard VAT rate in Poland
The standard VAT rate in Poland is 23%. It applies to all goods and services that are not subject to reduced VAT rates.
The 23% VAT rate applies to goods such as:
- electronics and household appliances,
- office supplies,
- furniture
- toys
- cosmetics.
It also applies to services such as:
- passenger transport,
- providing telecommunications services,
- training
- renovation services outside housing construction programs.
As a rule, the standard VAT rate applies to all categories of goods and services, except for those listed in the appendix to the VAT Act.
Reduced VAT rates in Poland
According to the regulations, the 8% VAT rate applies to goods and services listed in Annex 3 of the VAT Act.
These include, among others:
- food products (e.g. coffee, cocoa-free confectionery, sauces),
- goods normally used in agriculture (e.g. live trees, tubers, roots, seeds, grains, horticultural soil),
- healthcare-related goods (e.g. medical devices, medicinal products, disinfectants with bactericidal, fungicidal and virucidal properties),
- certain services (e.g. taxi, veterinary, hairdressing services).
The 8% VAT rate is also applied to the supply of buildings and residential premises. Certain construction services related to it also qualify for reduced rates.
The reduced VAT rate of 5% applies to:
- specific food products,
- other goods (e.g. printed books, maps, nappies, baby comforters),
- food products that were temporarily subject to 0% VAT rate until 1 April 2024. For example meat, fish, dairy products, vegetables, fruit, flour and fats.
A full list of products subject to the 5% VAT rate can be found in Appendix 10 of the VAT Act.
Special VAT rates in Poland
Special procedures defined in the VAT Act allow farmers using the unified rate to receive a flat-rate tax refund of 7% from the buyer. This tax rate was temporarily increased by the legislator from the basic rate of 6.5%.
Entrepreneurs providing passenger taxi services have the possibility of using a flat-rate tax at the rate of 4%. However, it does not apply to car rental services with a driver. This rate has also been increased by the legislator for a specified period from the basic rate of 3%.
Preferential VAT rate in Poland
The 0% VAT rate applies to goods and services specified by the legislator.
According to the VAT Act, it primarily applies to intra-Community supply and export of goods.
The preferential rate also applies to goods listed in Annex 8 to the VAT Act:
- Central processing units of computers, servers, monitors, desktop computer sets,
- Printers
- Scanners
- Braille computer devices,
- Digital data transmission devices.
It can also be used in exceptional cases.
VAT exemption in Poland
As per the provisions of the VAT Act, the following can be distinguished among the goods and services exempt from VAT:
- supply of goods used exclusively for tax-exempt activity, if the entity making the supply was not entitled to reduce the amount of output tax by the amount of input tax on account of the purchase, import or production of these goods,
- delivery of buildings,
- universal postal services,
- medical care services,
- educational services,
- financial and insurance services.
VAT rates in Poland – summary
In 2024, there are several VAT rates in Poland. Knowing them is essential for entrepreneurs and accountants to avoid tax mistakes and effectively manage the company’s finances. Regulations on VAT rates affect various goods and services, which can have a significant impact on the operating costs of businesses.
Are you interested in the topic of VAT rates in Poland? If you want to learn more, please contact us! Experts from our law firm are eager to help you.
FAQ – Questions and answers on the topic of VAT rates in Poland
What is the basic VAT rate in Poland in 2024?
The standard VAT rate in Poland in 2024 is 23%.
Is the 0% VAT rate still in force?
Yes, the 0% VAT rate is still in force in 2024 for selected goods and services.
What goods and services are subject to the 8% VAT rate?
The 8% VAT rate covers e.g. construction services related to housing and certain medical services.
Has the VAT rate on food changed?
The VAT rate on basic food products is still 5%, but the specific categories may vary.
What changes to VAT rates in Poland have been introduced in 2024?
In 2024, adjustments to VAT rates for selected goods and services were introduced to align with EU standards.
Are digital services subject to the new VAT rates in Poland?
Digital services are subject to a 23% rate, however, specific regulations may apply for international transactions.
What are the VAT rates in Poland for transport services?
Transport services are subject to different VAT rates depending on the type of transport and the range of services.
Do the new VAT rates in Poland affect small businesses?
Yes, small businesses need to adjust their accounts to the new VAT rates. This can affect their operating costs.
What are the benefits of knowing VAT rates for entrepreneurs?
Knowledge of VAT rates allows for better financial management and avoidance of tax errors. It enables more effective business planning.
Where can I find the full list of VAT rates in Poland applicable in 2024?
The full list of VAT rates applicable in 2024 is available on the website of the Ministry of Finance. You can also find it in the Journal of Laws.