VAT regulations are killing the film industry

Recently, the producers of the second movie of the Chronicles of Narnia established the seat of their company in the Czech Republic. The budget of the movie is estimated at USD 200 million and a large part of this will be spent in the host country. The reason why the producers did not choose Poland are problems with tax refunds, and it is for the same reason other producers are also choosing neighboring countries. Poland has the highest VAT rate in the world for film production. The Polish Institute of Film (PISF) has decide to is going to try and change this sad state of affairs. Agnieszka Odorowicz, the director of PISF, said they asked the Deputy Culture Minister to organize a meeting between the Deputy Finance Minister responsible for indirect taxes and the Deputy Economy Minister responsible for foreign investment. PISF wants the procedure of VAT refunds to be simplified. In the Czech Republic producers wait only three months for a tax return while in Poland it takes many months and there is no certainty that VAT will be refunded. If the changes were made, Poland could see the influx of USD 150 million per year from film production. (Puls Biznesu p. 4) M.M.