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Poland considers single VAT rate

  • VAT
  • 12 June 2014 | Richard Asquith

Poland considers single VAT rate

Poland is reviewing combing its standard and reduced VAT rates to create a single rate for all taxable goods and services

The current Polish VAT rate is 23%, with reduced rates of 8% and 5%. Polish VAT was increased from 22% in January 2011. It is promising a Polish VAT rate cut back to 22% in 2016 or soon after.

This new proposal comes from the Finance Ministry with the idea of simplifying VAT compliance process. It is believed that the combined rate would be either 17% or 18%. Other countries, such as the Czech Republic, has put forward such plans but with no conclusion. It follows the original post-Soviet era countries’ plans for flat taxes which were rolled back following the start of the financial crisis in 2007.

EU rules on VAT rates

The 28 member states of the EU are free to set their own standard VAT rates within the rules of the EU VAT Directive. The standard VAT rate must be at least 15%, and they are permitted two reduced VAT rates of 5% or above. There is also scope for nil VAT rates on goods where the rate was applicable prior to entry into the EU by the country.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.