The VAT tax has been in Poland since 1993 and replaced the turnover tax
The turnover tax, i.e. the predecessor of the well-known tax on goods and services, functioned until July 4, 1993. Its most important features:
- calculated on the sales volume and paid at each turnover phase - without the possibility of deducting the tax paid by the contractor at an earlier stage,
- calculated on the gross turnover, which means that the tax base was the turnover value together with the tax.
The turnover tax covered only consumer goods and amounted to 20% on goods and 5% on services.
The tax on goods and services was introduced by the Act of January 8, 1993, which entered into force on July 5, 1993. Its characteristic features are:
- universality - all supplies of goods and services are subject to taxation (there are slight exceptions to this rule),
- multi-phase - each stage of trading and services up to the end consumer is subject to taxation,
- deductibility - unlike turnover tax, taxpayers have the right to deduct input tax resulting from sales invoices received from contractors,
- neutrality - the burden of tax is borne only by the final recipient - the consumer.
An important difference is also the fact that the tax base for value added tax is the net turnover.
Currently applicable VAT rates:
- 23% - basic rate,
- 5% and 8% - reduced basic rates,
- 0% - used in the intra-Community supply of goods and in the export of goods under the conditions specified in the VAT Act.