Poland drops VAT rate simplification
- European News
- 20 March 2016 | Richard Asquith
Poland’s Ministry of Finance has confirmed that it will not proceed with plans to streamline its VAT rates.
The proposal was to consolidate the current 23% standard rate with the 5% & 8% reduced VAT rates. The measure was to be fiscally neutral. The proposal was for a standard rate of 20% and a single, reduced rate of 5% (following the UK’s example).
However, the new government was unhappy with the necessary rise in reduced rates on certain goods.
The plan to cut the current standard rate from 23% to 22% remains under consideration.