Poland to hold VAT rate at 23%
- European News
- 1 April 2013 | Richard Asquith
Poland's promise to reduce its Value Added Tax rate to 22% has been delayed.
The Polish VAT rate was increased 1% to 23% in 2011 on the back of the worsening economic conditions in Europe. Whilst Poland was one of the few countries to avoid a technical recession, its government finances did fall considerably. Poland's ambition to join the Euro single currency meant pushed it to raising VAT temporarily to ensure it complied with the 3% government deficit target for Euro entry.
The government is still hoping for an improvement in its finances - a drop in the VAT rate may not come before 2015.