The Polish Vat System And E-commerce

The Polish VAT system has been progressively aligned with the total body of EU law, and efforts have been made to ensure that national products and similar products imported into Poland are taxed at an equal rate. The legal provision governing VAT issues are I Council Directive of 11 April 1967 on harmonization of the laws of member states in the field of turnover taxes (67/227/EEC) and VI Council Directive on harmonization of the laws of member states relating to turnover taxes – common system of value added tax: uniform basis of assessment (77/388/EEC). Poland is also the largest communications market in central Europe in terms of total service revenue. Nonetheless, access to broadband Internet in Poland is expensive and the number of users per 100 citizens is one of the lowest in Europe. It then becomes no wonder that, according to experts, Poland ranks among the lowest in harmonizing its VAT policy to accommodate the emergence of E-commerce transactions. Yet, efforts continue to bring Poland in line with its sister states in the EU.

The following questions have been addressed in this article:

What are the main features of VAT?
What are the various VAT rates in Poland?
What is the reverse charge mechanism?

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