The European Commission has taken into consideration a proposal to allow Poland to expand the scope of the VAT relief measures. This would allow small companies in Poland to benefit from a lighter administrative burden. This is not the first time Poland requested a permission to simplify its VAT rules for small traders. Our lawyers in Poland can give you more details on the VAT and tax regimes and what this change would mean for your business.
The proposed VAT changes for small companies in Poland
Poland proposed an extension of the scope of an already existing authorization issued in 2009 by the European Council to allow it to reduce the tax burden on small businesses. The reduction issued in 2009 applied to those taxable individuals who recorded an annual turnover of less than 30,000 EUR or approximately 130,000 PLN. The first approval was valid from 2009 to 2012 and it was later extended until the end of 2015. A further increase extended its validity until the end of 2018.
In its latest proposal, Poland requested that the threshold for this exemption to be increased from 30,000 EUR to 40,000 EUR.
You can talk to one of our lawyers in Poland
for more details in the current tax changes or the specifically applicable regime if you are a foreign investor in the country.
The current Polish VAT regime
Poland imposes value added tax
on the provisions of goods and services and imports and exports. The standard rate is 23% and lower rates of 5% and 8% apply to some goods and types of services. moreover, intra-Community exports and supplies can be exempt from VAT.
VAT registration is mandatory in Poland for those companies that have an annual turnover of more than 200,000 PLN. Registration also applies in most cases for non-resident companies in Poland.
If you need more information about the taxation laws in the country, you can contact the experts at our law firm in Poland
. We have offices in Krakow, Warsaw, Wroclaw or Lodz and we are ready to provide you with suited legal services.