New matrix of VAT rates in Poland

Starting from April 1st, 2020 a new VAT matrix will come into force in Poland. There will be entirely new lists of goods and services taxed at 8% and 5% reduced rates (new Annexes No. 3 and 10 to the Act) based on CN codes and PKWiU 2015 (Polish classification of goods and services). The new matrix has been mainly prepared with the adoption of the principle of applying one rate for all (if possible) CN group of codes, and general reduction of the rate in case it is necessary to change it for a given commodity (“downward equation”). Nevertheless, to maximally balance the financial effect, a few positions of goods and services have been equated upward. In a result of the new legislation, the number of items in the annexes will be decreased from 183 to 97 which may bring the factual simplification for businesses.

Below you will find the changes related to most popular goods:

Downward equation

Upward equation

from 8% to 5%

  • Tropical and citrus fruit, some edible nuts, citrus fruit or melon peels – will be covered by 5%. at stake like all fruits
  • Soups, broths, homogenised and dietetic food.
  • Food for babies and small children, as well as teats, nappies and car seats
  • Hygienic articles (sanitary napkins, hygienic tampons, diapers).

from 8% to 23%

  • Ice used for food and other refrigeration purposes
  • Lobsters and octopus, other crustaceans, molluscs and aquatic invertebrates (including crabs, langoustines, shrimps, oysters, mussels, snails) and their products, as well as caviar and dishes sold in gastronomic establishments, of which the abovementioned are products

from 23% & 8% to 5%

  • Bread of all kinds and cookies (before the change, it could be 23%, 8% or 5% depending on the detail conditions)

from 5% to 23%

  • Fruit and vegetable drinks, excluding fruit and vegetable nectars

from 23% to 8%

  • Mustard, sweet pepper (spice) and some processed spices (e.g. pepper, thyme)

from 5% to 8%

  • Some unprocessed spices (e.g. cumin, saffron, turmeric)
  • Specialised magazines

from 23% to 5%

  • Books, brochures, leaflets and similar materials, printed, even in single sheets, with the exclusion of leaflets which 23% applies,
  • Regional or local magazines only, for the rest of ex 4902 group 8% applies
  • Children’s, picture, drawing or colouring books,
  • Musical notes printed or in a manuscript, even illustrated or bound
  • Maps and hydrographic maps or similar maps of all kinds, including atlases, wall maps, topographic plans and globes, printed,
  • Other printed articles, including printed pictures and photographs – only regional or local magazines
  • An electronic version of the goods mentioned above

 

 

The detail lists of the goods and services that are subject to reduced VAT rates are available in the attachment No. 3 and No. 10 to the VAT Act are available in the amendment to the VAT Act  (Polish version only) at this link:

http://orka.sejm.gov.pl/proc8.nsf/ustawy/3255_u.htm