34 minutes ago
The Ministry of Finance has published another proposal for amendment of the VAT Act and in its proposal for a new allocation of interest rates on individual goods and services.
The Ministry of Finance has proposed another proposal for amendment of the VAT Act / © 123RF / PICSEL
It is so called a new VAT matrix, which the Ministry has long been communicating and working on for many months. The facility would organize the system of prices to eliminate the absurdities of a kind of taxation of similar goods and services.
One example is bread, which can be covered with different VAT (5-8, and 23 percent) depending on the date of expiry. The Swedish Tax Agency today uses prices based on the Polish classification of goods and services used by the Central Statistical Office, which gives rise to many misunderstandings, and entrepreneurs do not always know how to tax the goods or services they sell.
This generates disputes, including legal costs and costs, both by the taxpayer and the tax office. In the PKWiU project published today for VAT taxation, the goods will be replaced by CN classification used in international trade. It will continue to apply to services.
Finance Minister Teresa Czerwińska says that the proposed department that orders the VAT rate matrix is one of the elements of a broader tax simplification program.
– Our goal is to combine the system with batches and put down their equation within individual groups. This applies, for example, to bread, which currently depends on the expiration date, is covered by different tax rates, including 23%.
We want the new VAT matrix for bread to always be 5%. The same goes for fruit – says Minister Czerwińska.
The head of department adds that for some groups simplification will consist in lowering the tax.
– In the case of products for infants and children, such as pacifiers, diapers, car seats, we have lowered the rate to the lowest possible or 5 percent. Similarly, when it comes to hygienic items for women – says Minister Czerwińska.
According to the project, however, the equation will go up in certain categories. This applies to selected premium food. For example, when selling caviar and octopus, the base rate will be used, ie 23% instead of reduced.
The Ministry of Finance believes that the whole system, thanks to the new VAT rate, becomes more transparent, making entrepreneurs more confident in their application.
– So-called WIS, ie, binding spell information. We are aware that changes are important, that's why we care about constructive and actual consultation with all stakeholders – adds Minister Czerwińska.
Dziennik Gazeta Prawna