Poland increases VAT 1% to 23% January 2011

Poland has proposed a 1% standard VAT rate rise to 23% from January 2011.  There will also be an increase in the reduced VAT rate to 8%.

The government has also proposed further, 1% incremental rises until 2013 when the rate will be 25% - the highest in Europe.  These Polish VAT rise will be mirrored with rises in the reduced VAT rate.

Poland joins a number of other countries turning to VAT rises to help manage spiraling debt.  These countries in include Hungary, Spain, Finland and Romania.

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