Poland to record VAT revenue decline next year
December 27, 2013
The Polish government will suffer PLN 393 million in VAT revenue decline in 2014 due to introduction of a VAT deduction for vehicles purchased by businesses, the Finance Ministry said in the assessment of effects of regulation document attached to the bill changing the VAT law.
The Polish government will introduce 50% deduction on all VAT taxes related to passenger cars owned by businesses, including on fuel, regardless of the intended use of the car.
Full tax deduction will be applicable only to those vehicles that are used solely for business.
In 2016, the decline in VAT revenues will increase to PLN 2.6 billion.
At the same time, the government expects income tax revenues to increase by PLN 60 million in 2014, PLN 225 million in 2015 and PLN 478 million in 2016 thanks to the tax law changes.