Poland: Reduced VAT on children’s clothing, increase in revenue cap for lump-sum income tax scheme

Recent tax-related legislative developments

Increase in revenue cap for lump-sum income tax scheme

The KPMG member firm in Poland prepared reports about recent tax-related legislative developments.

  • A committee bill on prevention of administrative and legal barriers, which was submitted before the Sejm on 5 July 2023, includes the following tax-related proposals:
    • Reduction of value added tax (VAT) on children's clothing and shoes from 23% to 5%
    • Repeal of the three-year limitation of the period to use the preferential social security scheme (Mały ZUS plus) by entrepreneurs with the annual revenue of up to PLN 120,000
    • Increase of the revenue cap for use of the lump-sum income tax scheme from €2 million to €3 million annually
  • A bill on reducing irregularities in trade in certain goods and streamlining functioning of the National Revenue Administration, which was adopted by the Council of Ministers on 4 July 2023, includes the following proposals:
    • Obligation to register the places of fuel delivery to ensure security of trading in motor fuels
    • Introduction of the system of licenses for dyeing and marking fuel oils and marine fuels
    • Clarification of the issues related to ​​entities that use fuels for their own needs, such as importers
    • Transition from paper to electronic documentation stored in a single system called the Central Records of Excise Goods (CEWA)
  • The Ministry of Finance announced that draft amendments to the Polish tax law, for which a consultation was launched on 20 June 2023 (read TaxNewsFlash), would not be further processed during the present term of the Lower House of the Polish Parliament.

Read a July 2023 report prepared by the KPMG member firm in Poland

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