30 April 2026

VAT Guide, part 2: VAT rates in Poland

Polish VAT regulations are based on the implementation of EU Directive 2006/112/EC, which establishes the principles for constructing VAT taxation rules in EU Member States. Based on the principles and requirements outlined in this directive, VAT rates were established in the Polish VAT Act. Member States are required to introduce a standard VAT rate (calculated as a percentage of the taxable base), which must be uniform for both supplies of goods and services. The VAT Directive specifies that the standard VAT rate cannot be lower than 15%.

EU regulations allow the introduction of additional, lower VAT rates. Member States may apply up to two reduced rates, provided that these rates cannot be lower than 5% and may only apply to supplies of goods and services listed in Annex III to the VAT Directive. Member States may apply reduced rates to supplies of goods or services covered by up to 24 items in Annex III of the Directive.

Furthermore, Member States may apply a single minimum rate, lower than 5%, and an exemption with the right to deduct VAT to supplies of goods or services covered by up to seven items listed in Annex III to the VAT Directive (for specific items listed in the Annex). However, lower rates and exemptions cannot be applied to electronically supplied services (with certain exceptions listed in Annex III).

VAT Rates in Poland

Poland introduced a standard rate of 22% (Article 41 of the VAT Act) – however, this was temporarily increased to 23% (and remains in force).

Two reduced VAT rates were also introduced:

• An 8% tax rate applies to selected goods and services – such as books, newspapers, printing, construction, renovation, delivery, modernization, thermal modernization, and pharmaceuticals. It should be noted that this tax rate is temporarily increased from 7% (similar to the 23% rate).
• A 5% tax rate applies to selected goods, such as food, baby products, and hygiene products.

A 0% VAT rate has also been introduced, which applies to intra-Community supplies of goods and exports of goods, as well as to goods listed in Annex 8 (servers, monitors, desktop computer sets, printers, scanners, Braille computer equipment, digital data transmission devices – e.g., network switches – provided that the equipment is supplied to educational institutions and to humanitarian, charitable, or educational organizations (for further free transfer to educational institutions).

There is also a VAT rate – this is provided for the provision of services that are exempt from VAT and for taxpayers benefiting from the subjective exemption (up to a limit of PLN 240,000).

Special provisions regarding VAT rates

The VAT Act also provides for special procedures under which special VAT rates are set.

1. Small taxpayers providing passenger taxi services have the option of using a flat rate of 4% (the tax rate for the time being). raised from 3%.
2. Flat-rate farmers can exercise their right to receive a 7% flat-rate tax refund from the buyer. Similar to the case of taxis, this rate has been temporarily increased by the legislature from 6.5%.

The Role of Statistical Classifications in Determining the Correct Tax Rate

To determine the correct VAT rate for a given taxable activity, statistical classifications are used – the Combined Nomenclature (CN codes) and the Polish Classification of Products and Services (PKWiU). These classifications determine whether a given product or service is subject to the standard VAT rate or whether reduced rates or VAT exemptions are possible.

Furthermore, if there are any doubts regarding the classification of a good or service, an application for Binding Rate Information (BRI) can be submitted to the Director of the National Tax Information Service. The tax authority issues a binding decision (also for the tax authorities) within three months of receiving the application, based on which the taxpayer (applicant) benefits from special protection.