Poland drops VAT rate simplification

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.