Michaela Merz

POLAND: Changes in the scope of VAT rates as of 1 June 2019

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As informed in blog post, the Polish Ministry of Finance published the draft amendment to the VAT Act (of 8 November 2018).

On 5 March 2019, the draft amendment to the Polish VAT Act introducing a new matrix of VAT rates has been adopted. This in practice means that goods will be assigned to the Combined Nomenclature (CN), whilst services will be based on a new classification of products and services (i.e. 2015 PKWiU codes).

 

Most important changes as of 1 June 2019

1. In the period from 1 June 2019 to 31 December 2019, a VAT rate of 5% applies to the following goods and services:

1) books, newspapers, pictures and other products of the printing industry, printed; manuscripts, typescripts and plans (CN ex 49) – only goods covered by the following CN:

a) books, brochures, leaflets and similar printed materials, even in single sheets, excluding leaflets (CN ex 4901),
b) newspapers, journals and magazines, even illustrated or containing advertising materials – only regional or local magazines (CN ex 4902),
c) books for children, pictorial, for drawing or coloring (CN 4903 00 00),
d) notes printed or in manuscript, whether or not illustrated or mounted (CN 4904 00),
e) maps and hydrographic maps or similar maps of all kinds, including atlases, wall maps, topographical plans and globes, printed (CN 4905),
f) other printed articles, including printed pictures and photographs – only regional or local magazines (CN ex 4911);

2) Disks, tapes, semiconductor persistence devices, “smart cards” and other media for recording sound or other phenomena, even recorded, including matrices and patterns for the production of discs, but excluding products of Chapter 37 (only publications covered by point 1 – see above) (CN ex 8523);

3) Electronic delivery of publications (covered by point 1 lit. a, c and e – see above), excluding publications that consist wholly or mainly video content or audible music.

 

2. For the period from 1 June 2019 to 31 December 2019, a rate of 8% VAT shall apply to the following goods and services:

1) Books, newspapers, pictures and other products of the printing industry, printed; manuscripts, typescripts and plans (CN ex 49) – only goods covered by the following CN:

a) Newspapers, journals and magazines, whether or not illustrated or containing advertising material, excluding regional or local magazines (ex 4902),
b) Other printed matter, including printed pictures and photographs – only vintage, excluding regional or local magazines (ex 4911);

2) Discs, tapes, solid-state non-volatile storage devices, “smart cards” and other media for the recording of sound or other phenomena, whether or not recorded, including matrices and masters for the production of discs (but excluding products of Chapter 37 – only publications referred to in point 1, as above) (CN ex 8523);

3) Electronically providing publications (included in par. 1 point 1 lit. b and f – see above), excluding publications that consist wholly or predominantly video content or audible music.

 

What does that mean

Obtaining ISBN symbol (or ISSN) will no longer be obligatory to apply reduced VAT rates, what until now has been a condition for application of the reduced VAT rate.

Should you have any additional questions, please contact Kinga Zawora, kinga.x.zawora@ch.pwc.com

 

Image source: unsplash.com

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