The Ministry of Finance does not currently plan to modify the applicable regulations regarding VAT rates

Currently, there are no planned changes aimed at modifying the applicable regulations regarding VAT rates, said Deputy Minister of Finance, Jarosław Neneman, in response to a parliamentary interpellation. The Ministry of Finance estimates that the potential restoration of VAT rates to 22%. and 7 percent it would cost the budget approximately PLN 17.26 billion in 2026 conditions.

“A possible restoration of the rates to the level before January 1, 2011 (i.e. to 22 percent and 7 percent) would be associated with negative budget effects, the total amount of which is estimated at approximately PLN 17.26 billion in 2026 conditions (PLN 12.16 billion – the result of reducing the rate of 23 percent to 22 percent and PLN 5.1 billion – the result of reducing the rate of 8 percent to 7 percent),” it was written in the document.

“Taking into account the above, no changes are currently planned to modify the applicable regulations in the discussed area,” it added.

The document indicates that the government monitors the dynamics of the economic situation and makes decisions regarding VAT rates adequate to the current situation.

“However, with regard to the issue of introducing possible changes to the provisions of the VAT Act, it should be emphasized that all decisions regarding changes in VAT rates should be based on estimates of the impact of such a solution on consumers, as well as their comprehensive impact on the economy, including the state budget,” it was written.

“Additionally, it is important that Poland is subject to the excessive deficit procedure, so decisions regarding the limitation of part of tax revenues – in the case of the decision to return to the rates of 22% and 7% and no longer maintain the rates of 23% and 8% – should be made with great caution,” it added.

As indicated in the response to the interpellation, increased by 1 percentage point. VAT rates – 23 percent instead of 22 percent and 8 percent instead of 7 percent – were introduced in 2011, initially for a period of three years, which was justified by the economic situation at that time.

“The maintenance of VAT rates at 23% and 8% was extended several times over the following years by amending the VAT Act by decisions of subsequent Governments. From 2024, there is a mechanism in the VAT regulations based on which the period of validity of VAT rates increased by 1 percentage point is correlated with the level of expenditure allocated to financing the defense needs of the Republic of Poland,” it was written. (PAP Business)

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