The Polish 2019 budget has recently been enacted providing for, amongst other changes, the application of the special reduced VAT rate of 5% to all books including e-books as of 1st April 2019.
The amended legislation provides for the following measures, which unless otherwise stated, come into effect as of 1st April 2019:
- Introduction of the “binding rate information” ruling, which will provide businesses with official, binding information on the correct VAT rate to apply to their products;
- Simplification of classification codes applicable to reduced rate supplies as follows:
- Goods will be classified under CN codes instead of PKWiU;
- Services will be classified under PKWiU 2015 instead of PKWiU 2008;
- Extension of the scope of the reduced 8% rate of VAT to include:
- Both printed and electronic newspapers, magazines, periodicals and journals; and
- As of 1st January 2020, all spices including mustard, paprika and also processed spices (such as pepper, nutmeg and thyme).
- Extension of the scope of the special reduced 5% rate of VAT to include:
- Electronic books as well as other books without an ISBN number currently taxed at the standard 23% VAT rate; and
- As of 1st January 2020,
- Tropical and citrus fruit and certain nuts;
- Baked goods including bread, pastry products and biscuits;
- Soups, broths, homogenised and dietary food, including food for special medicinal purposes;
- Food, products and accessories intended for babies and young children; and
- Hygiene/sanitary products.
Currently the 5% special reduced rate applies to certain printed books and periodicals; certain food products, drinks, fruit and vegetables; and, specified agricultural products.