Changes in VAT which came into force on 1st July 2020


03.07.2020 r.

Changes in VAT which came into force on 1st July 2020

The amendments, which were specified in the Act of 9th August 2019 concerning amending the Act on Value Added Tax (VAT) as well as certain other acts came into force on 1st July 2020. The amendments introduced a new scope for the application of the reduced VAT rates of 8% and 5%, as well as providing protection for taxpayers in the form of information concerning the binding rates.

Under the new legal regulations, taxpayers will have the possibility to obtain additional protection by requesting information concerning the binding rates which will be issued by the director of the National Tax Information Office. This information was issued in the past, but it is only since 1st July 2020 that it finally became binding, not only for those taxpayers who asked for this information, but also for any taxpayer who wishes to use it in the future.

This new regulation also unifies the tax rates for specific product groups which, at present, have goods from within the same category sometimes being taxed at different rates, e.g. bread, or fruit.

Also from 1st July 2020, goods for VAT purposes which were previously marked using the Polish Classification of Products and Services (PKWiU 2008) will now be marked using the Combined Nomenclature (CN), or the Polish Classification of Construction Objects (PKOB).

The abovementioned amendments have been prepared for application since 1st April 2020; however, in accordance to the Act amending the Act on Special Solutions related to the Prevention, Counteracting, and Combating of COVID-19, other Infectious Diseases and the Resulting Crisis Situations, and Certain Other Acts of 31st March 2020, this deadline was extended to 1st July 2020.