The Ministry of Finance has prepared an amendment to the VAT Act, which includes proposals related to both tax rates and administrative mechanisms.
The key proposed changes include:
1. Changes in VAT Rates
– VAT increase on hemp products: the supply of hemp products intended for smoking or inhaling without combustion will be taxed at a rate of 23%, instead of the current 8%.
– 23% VAT rate for live equines: horses, donkeys, mules, and hinnies, which were previously taxed at 8%, will be subject to the standard VAT rate starting in 2025.
– VAT reduction on menstrual cups: the VAT rate on menstrual cups will be reduced from 23% to 5%, aligning the tax treatment of women’s hygiene products.
– zero VAT rate on rescue boats and lifeboats: The amendment introduces a 0% VAT rate for rescue boats used at sea that are not classified as seagoing vessels.
2. Abolition of the requirement to integrate cash registers with payment terminals
This change will benefit businesses. The obligation to integrate online cash registers with payment terminals, which was set to take effect in 2025, will be abolished. Instead, payment transaction data will be provided by payment agents.
3. Extension of the reverse charge mechanism for VAT
The reverse charge mechanism will be extended until the end of 2026 for transactions related to greenhouse gas emissions and electricity in the power system.
4. Changes in excise duty
The excise duty regulations for passenger cars will also change. Companies that register vehicles solely for export purposes will be able to reclaim the paid excise duty. This also applies to vehicles for which the tax obligation arose before the new regulations came into force, but were exported after December 31, 2024.
Summary
The year 2025 will bring a series of VAT changes that will affect business operations in Poland. Entrepreneurs should familiarize themselves with the new regulations to properly prepare their companies for the upcoming changes.
