Poland confirms 23% VAT rate till at least 2016

The Polish VAT authorities have confirmed that it will extend the current ‘temporary’ standard VAT rate of 23% until 2016.

The Finance Ministry had raised the Polish VAT rate from 22% in 2011, but promised to then reduce it back in 2014.  However, whilst Poland was the only European Union member state to avoid recession in the recent financial crisis, it is still struggling to maintain its state deficit within the Euro-currency target of 3% of GDP.  It has therefore indicated it will propose a measure to extend the VAT rise for a further two years.  The average EU VAT rate is now over 23%