Thursday , March 30 2023

VAT change. What will increase and cheaper? Prices


– The order of the VAT reduction system is a response to the problems caused by the need to assign analytical problems and specific products at appropriate prices. This change will increase the certainty of taxpayers and tax authorities on the correct application of VAT regulations. In this way, we settle tax uncertainties and become more annoying than tax obligations. "Said Minister Teresa Czerwińska, Minister of Finance.

Simplification of the VAT system is an important step in the repair of Polish taxes. This change is based on the 3xP philosophy. In other words, the creation of transparent, simple and tax-friendly tax systems, including entrepreneurs, is underlined.

The resort offers a general reduction in the VAT rate on the benefits of the new classification of goods and services"equation"(Food, nipples, diapers, car seats), products for women (sanitary goods) and electronics (food and drink), food and beverages (tropical fruits and citrus fruits, all kinds of breads and cookies, soups, soups, homogeneous and nutritious foods, spices) For books and electronic magazines – like paper, taxes are levied.

– The new Value Added Tax (VAT) rate is the continuation of pro-family government policies and economic support for Polish families. We are also encouraging the use of the latest technological achievements as well as reading and social development in the cultural technology field. Therefore, the proposal for lower prices for e-books and e-magazines added Czerwińska.

The new tools will increase the certainty of taxpayers and tax authorities on the correct application of VAT regulations. This tax rate is underlined.

The amendments to the VAT provisions are based on the changes in the way in which goods and services are identified for VAT purposes and the application of the Polish Product Classification and Services (PKWiU 2008) within the product range to the EU Union Classification Table (CN) Provide services that are based on departure from product classification and service.

The new solution provides as much of a single tax rate as possible across the entire CN section. This means that the number of items in the new Annexes No. 3 and No. 10 has decreased substantially in accordance with the VAT Act, which includes a list of goods and services to be imposed at a rate of 8% and 5%, respectively. At the same time, the introduction of simple matrices is screened, but MF will point out that it will be offset by lower rates for goods and services.

Using CN Classification for Value Added Tax (VAT) is a new solution, so Book-to-Bill Information (WIS) will be introduced to provide taxpayer protection and accurately allocate tax rates. This is a decision, unlike the GUS classification comments that have been working so far. We will provide certainty about the accuracy of the value-added tax rate that applies to taxpayers and tax authorities.

WIS ensures ownership protection. The tax authorities can not, for example, ask questions about tax rates applied by taxpayers based on the WIS they acquired (for example, if the goods or services match those in the WIS).

Other taxpayers can use wisdom as well as those who receive wisdom. WIS compliance with a given good or service issued to another taxpayer can not be harmful to the taxpayer (including duty free of duty, including interest free).

Binding Tariff Information and Binding Excise Information provide protection to holders and other taxpayers. This determination determines the proper classification of goods according to the CN and facilitates the accurate allocation of the VAT rate for a given product.

"The new VAT Matrix will be applied on January 1, 2020 (starting April 1, 2019 for books, notes, maps and magazines), but if you apply for WIS on April 1, 2019 Taxpayers can become familiar with the new system and change taxation on goods and services. " – summary.

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