FinMin: VAT bill to bring PLN 3.4 bln annually

Poland expects PLN 3.4 billion in annual value-added tax (VAT) revenue boost on the implementation of a package of VAT tightening solutions, according to a draft bill presented by the Ministry of Finance. Most of the solutions are to take effect as of January 1, 2017, estimated at PLN 3.1 billion. The Finance Ministry also proposes keeping the existing basic VAT rates at 8 percent and 23 percent to the end of 2018. Lowering them the following year to 7 percent and 22 percent respectively would result in a VAT receipt gap of approximately PLN 7.5 billion. The initial-year effect is to stand at PLN 3.117 billion, the ministry noted. The liquidation of quarterly declarations for large taxpayers will cause a one-off shift of PLN 800 million, while the hike in sales cap will result in a one-off gap of PLN 275 million, a statement read.