Poland 2019 budget allows 5% vat rate cut for ebooks from april 2019 view larger image the polish 2019 budget has recently been enacted providing for, amongst other changes, the application of the special reduced vat rate of 5% to all books including ebooks as of 1st april 2019. Poland 2019 budget allows 5% vat rate cut for ebooks from april 2019 view larger image the polish 2019 budget has recently been enacted providing for, amongst other changes, the application of the special reduced vat rate of 5% to all books including e books as of 1st april 2019. There are reduced rates of 8% and 5% on certain food, books, newspapers and the supply of a limited number of other. The 28 member states are otherwise free to set their standard vat rates. Standard vat rate is 23% and reduced one is only 5%, 8%. Polish vat provisions provide three rates of vat, which can be used to. The norwegian government has proposed exempting from vat zerorating the sales of electronic journals and books effective 1 july 2019. There will be entirely new lists of goods and services taxed at 8% and 5% reduced rates new annexes no. Vat rates on books and ebooks around the world publishing. Vat rates vat rates may vary depending on the destination country and product type. The european commission issued a proposal for a council directive amending directive 2006112ec as regards rates of value added tax applied to books, newspapers and periodicals. Poland vat refund for visitors visitors to poland may be able to get a refund of the poland vat tax paid on any goods bought for deportation. In most cases, value added tax is payable at a rate of 23%.
For example, the printing of books is zero rated, while the printing of newspapers is liable to vat at the second reduced rate. Poland has announced plans to cut the vat rate on ebooks from 1 april 2019. The sale of digital products and services ess electronically supplied services will be taxable in the country associated with the location of the customer. Mar 17, 2020 poland has gained more and more importance when it comes to selling on european marketplaces. Denmark applies the highest vat rate on printed books 25%. Some countries have variations on this, including a third. Process of vat number registration is maintained by the ministerstwo finansow the ministry of finance. This follows the eu council ratification of the proposal to allow eu member states to cut rates on electronic publications to match their printed equivalents. Standard rate % reduced rate % second reduced rate % livestock rate % flat rate addition % published.
Nov 11, 2019 bread, cookies, books, newspapers, journals, e books were also changed from the standard rate to a lower rate. Poland has strict rules on the layout and format of vat records to be kept by companies or their tax agents. Poland challenges eu ruling on ebook tax rates the. Poland has announced plans to cut the vat rate on ebooks from 1 april 2019 to 5% from 23%. Global survey on vatgstsales tax rates for books and electronic publications result books key countries i exemption for all books 15 ii reduced rate for all books 33 iii reduced rate or exemption limitations apply 26 iv no reduced rate or exemption standard rate applies v treatment not known 1. If the annual turnover is less than pln 200,000, the owner of the business is exempt from vat registration. Vat rate in poland is imposed by both federal and regional government. Poland to cut vat on ebooks to 5% fiscal solutions. Poland approves reduction of ebook vat from 23 to 5 percent. Under certain conditions, printed journals and books are currently vat exempt in norway, while electronic versions are subject to vat at a rate of 25%. Poland has gained more and more importance when it comes to selling on european marketplaces. Poland 2019 budget allows 5% vat rate cut for ebooks from.
In 2018, the main vat rates applicable to local supplies in poland are as follows. Vat rates and minimum purchases required to qualify for refunds. The council has worked on a proposal to amend the existing eu vat directive in order to allow member states to apply, if they so wish, lower vat rates to epublications such as electronic books, newspapers and periodicals the draft proposal is part of the eus wider effort to modernise value added tax for the digital economy in the context of the eus digital single market strategy. Electronic books as well as other books without an isbn number currently taxed at the standard 23% vat rate. This page provides poland sales tax rate vat actual values, historical data, forecast, chart, statistics, economic calendar and news. Current vat rate in poland is 23% for most goods and services. Vat rates may vary depending on the destination country and items being delivered.
The vat rate chargeable for printing depends on the publicationproduct being printed. So, knowing about the polish vat rates is naturally a must. These will drop to 5% and 7% respectively, from an existing 5% and 8%. Jan 18, 2019 books of any kind and therefore printed on disks, tapes and other media, as well as ebooks will be taxed with one 5% vat rate this change is to take effect from april 1, 2019, products for infants and children, i. According to a statement issued by the chancellery of the polish president, the changes in vat introduce a new, simplified matrix of rates. Vat between the uk and poland brighton accountants.
Jul 03, 2019 since the european council agreed to allow member states to apply a reduced vat rate to electronic publications in october 2018 1, vat rates for ebooks have changed fast in eu countries. Under the newly signed law, ebooks will be taxed at 5 percent, a significant reduction from the current rate of 23 percent. Suppliers of goods or services vat registered in poland must charge the appropriate vat rate, and collect the tax for onward payment to the polish tax authorities through a vat. May 12, 2017 goods or services vat rate more information. Poland has a vat refund program that allows tourists and others to receive a refund of any poland vat paid on goods purchased in poland that are being exported from the country. Also included in the report is an appeal by ipa policy director jose borghino that countries consider a zerorate. The scope of the polish reduced 5% vat rate will be extended to cover in addition to printed books.
Fuel for business use is usually standardrated vat notice. The minimum purchase amount needed to claim a vat refund is 300. The standard vat rate in poland is 23% since january 2011. Poland now is the latest memberstate to drop its digital book vat rate. The proposal is part of the vat digital single market package, which, in addition to the proposal on epublications, contains legislative initiatives that aim to. Jan 03, 2020 since the european council agreed to allow member states to apply a reduced vat rate to electronic publications in october 2018 1, vat rates for ebooks have changed fast in eu countries. Books on discs, tapes, and other media will also be subject to a 5percent rate. Vat registration in poland open a company in poland. Since the european council agreed to allow member states to apply a reduced vat rate to electronic publications in october 2018 1, vat rates for ebooks have changed fast in eu countries. The federation of european publishers in december celebrated vat day, the end of a requirement to tax digital reading as software products. Printed matter liable at the zero rate the zero rate of vat applies to printed books and booklets including. Electricity for domestic and residential use or for nonbusiness use by a charity.
The valueadded tax, vat, is one that has a broad spectrum and covers the supply of goods and services in the country, performed both by small and large companies. New matrix of vat rates in poland starting from april 1st, 2020 a new vat matrix will come into force in poland. Taxamo content is created for guidance only, please consult your local tax advisor. What vat rate shall be applied for newspaper, magazines and books at sales in poland. As usual, the product category decides which tax category applies. Printed matter liable at the zero rate the zerorate of vat applies to printed books and booklets including. There are reduced rates of 8% and 5% on certain food, books, newspapers and the supply of a limited number of other services. This follows the eu councils proposal to allow eu member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article. To apply 0% vat rate it is necessary to obtain customs documents confirming that goods have left the eu territory. Including vat value added tax rates for spain, france, belgium, south korea, japan, pakistan, singapore and more. However, goods being sent to poland on behalf of a uk customer without a polish vat number are still subject to uk vat at the usual rate even if the customer is registered for vat in the uk. Ebook readers have felt somewhat discriminated against by the higher vat rate. This follows the eu councils proposal to allow eu member states to cut rates on electronic publications to match their printed equivalents, please click here for the full article find out more about vat in.
Since the european council agreed to allow member states to apply a reduced vat rate to electronic publications in october 2018 1, vat rates for ebooks have changed fast in eu countries 2019 has witnessed several vat rate updates for epublications where numerous countries have reduced the levy on ebooks, so in order to clarify the current situation we provide the following summary with. There are reduced rates of 8% and 5% on certain food, books, newspapers. At the same time, as in other countries, poland also has a number of exceptions for goods and services to which the socalled preferential or reduced vat rate. In the united kingdom, the vat rate is 0% on a number of select items, including books, childrens clothing and safety gear. From 1 april 2019, poland will cut the vat rate applicable on ebooks to 5% from 23%.
In most cases, you have to pay vat on all goods and. Even where vat is not being charged, the net value of the sale must still be reported on the uk vat return, in boxes 6. Reduced vat rates for electronic books, newspapers and. Vat exemption on electronic journals, books, and certain content. Application of reduced vat rates by the member states to the categories of goods and. Sep 17, 2019 books on discs, tapes, and other media will also be subject to a 5percent rate. Vat rates for ebooks so far 2019 global vat compliance. In poland, the ministry of finance passed laws to introduce new reduced vat rates from 1 april 2020. Supplies of printed books and booklets, including atlases, but excluding. Bread, cookies, books, newspapers, journals, ebooks were also changed from the standard rate to a lower rate. Poland follows the vat compliance of the european union, set out in the vat directive. Each invoice shows 8% vat which looks odd and when i scout around on the web i cant find anything suggesting 8% as a valid vat rate.
Reduced value added tax rate of 8% is collected for supplies of certain food items, medical products, hospitality services and community housing. Poland challenges eu ruling on ebook tax rates the digital. Also there super reduced 5% vat rate for some periodicals and books, some foodstuffs, some agricultural supplies and 8% reduced vat rate for supplies of certain food items, medical products, hospitality services and community housing. Local name for vat number in poland is numer identyfikacji podatkowej. There are reduced rates of 8% and 5% for certain products and services. Culture minister and deputy prime minister piotr glinski said that he will appeal to the european commission for the introduction of a 0% vat rate on printed books during the covid19 pandemic. From 1 april 2019, poland will cut the vat rate applicable on e books to 5% from 23%. The average vatgst rate applied to printed books is 5. Also there super reduced 5% vat rate for some periodicals and books, some foodstuffs, some agricultural supplies and 8% reduced vat rate for supplies of certain food items, medical products, hospitality services and community housing use this online polish vat calculator to calculate inclusive and exclusive vat rate in poland. Value added tax is charged for all the movable goods and services. In this new year 2020 new countries started or are planning to apply a reduce rate for. In the period from 1 june 2019 to 31 december 2019, a vat rate of 5% applies to the following goods and services. Even where vat is not being charged, the net value of the sale must still be reported on the uk vat return, in boxes 6 and 8. Polandpossible lowering of vat rates for ebooks january 6, 2017 the polish tax authorities have recently announced the launch of a public consultation into the vat rate applicable to supplies of ebooks, ejournals, and enewspapers.
Poland has announced plans to cut the vat rate on e books from 1 april 2019 to 5% from 23%. The correct vat rate for these products is 8% now, the second reduced vat rate in poland. Dec 15, 2016 value added tax vat rates per country. Jul 20, 2015 denmark applies the highest vat rate on printed books 25%. Paih value added tax vat polish investment and trade agency. Maximilian gampllast updated on 17 march 2020 related articles vat. The european union markets late last year finally were given the option to equalize vat rates on digital formats and print. Changes in the scope of vat rates as of 1 june 2019.
Standard rate % reduced rate % second reduced rate % livestock rate % flatrate addition % published. The eu also permits a maximum of two reduced rates, the lowest of which must be 5% or above. Poland 2019 budget allows 5% vat rate cut for ebooks from april. Poland cuts vat on the sale of ebooks april 1, 2019 following the eu councils proposal to allow eu member states to cut rates on electronic publications to match their printed equivalents from the 1st april 2019 poland has cut its vat rate on the sale of ebooks to 5% and enewspapersjournals to 8%. In poland the standard vat rate is 23% and, like any other country, poland also has lower vat for certain products or services.
The standard rate of vat increased to 20% on 4 january 2011 from 17. Hungary applies the highest vat rate on ebooks 27%. A dispatch can be conducted by the seller direct export or by the acquirer indirect export. Vatgstsales tax rate international publishers association. The valueadded tax is imposed for those activities. Newspapers, journals both printed and electronic and specialist periodicals will be taxed at 8%. Value added tax recovery time in poland is 6 months. The eu has standard rules on vat, but these rules may be applied differently in each eu country. Poland new reduced vat rates from april 2020 accordance. A list of goods and services showing which rates of vat apply and which items are exempt or outside the scope of vat.
Poland 2019 budget allows 5% vat rate cut for ebooks. Published 4 february 2014 last updated 12 may 2017 see all updates. Poland vat changes including rate cut on digital books delayed. The eu sets the broad vat rules through european vat directives, and has set the minimum standard vat rate at 15%. To get a vat refund, you must present receipts for the goods purchased and possibly proof of your deportation of the goods to a poland vat refund station which are often found in airports, tourist offices, or international travel hubs.
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