VAT hike on Internet connections likely in April

It was mainly concerned with adjusting Polish rules to EU directives. One of them obliges member states to apply the same basic tax rates on telecommunication services, including Internet connections. The application of divergent tax rates can result in financial penalties. Meanwhile, back in the month of March, Polish deputies introduced an amendment which exempted individual Internet users from the tax. Yesterday, they decided to introduce the 22% VAT rate, which means that from the beginning of April (this is when the new bill will come into force), Internet prices will rise, but not necessarily by as much as the VAT increase. Wiesław Iszkowski, president of the Polish IT and Telecommunication Office (PIIiT), believes that Internet providers will cover at least part of the tax hike. (Parkiet, p. 7) A.F.