Poland’s VAT rates – a temporary setup that’s lasted a while!

In Poland, the standard VAT rate is 23%, and we’ve had this “temporary” rate since 2011 (yes, over a decade of “temporariness”). Originally, it was meant to last only a few years, but it seems it has decided to stick around longer than expected.

Alongside the 23% rate, there are two reduced rates of 8% and 5%, as well as a 0% rate for specific types of transactions.

Below is a quick breakdown of what these rates cover.


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The reduced VAT rate of 8% covers, among others:

  • foodstuffs such as coffee, non-cocoa confectionery products, sauces,
  • goods commonly used in agriculture such as live trees, bulbs, roots, seeds, grains, gardening soil,
  • health-related goods as medical devices, medicinal products, disinfectants with bactericidal, fungicidal, and virucidal properties,
  • certain services as veterinary services, hairdressing services.

The 5% rate applies to basic food products such as meat, dairy products, vegetables, fruits, and cereals (until 31st March 2024 VAT rate for listed goods was temporarily reduced to 0%).

The 0% VAT rate (exemption with the right to deduct) applies to intra-community supply of goods and export of goods, provided that documentation requirements are met.

Avoiding risks with VAT rates

Applying the reduced 5% or 8% VAT rate, instead of the standard 23%, can sometimes be risky if the classification of goods or services isn’t clear. Misclassifications could lead to tax arrears and other issues (e.g. troublesome invoice correction process and disputes with the clients).

To stay on the safe side, businesses are encouraged to apply for:

  • Binding Tariff Information (WIT) – to confirm the correct tariff classification for goods,
  • Binding Rate Information (WIS) – to confirm the correct VAT rate for specific goods or services.

Applying for these rulings can save you time, money, and stress.

Poland’s VAT rates vs. the EU

As a side note, Poland’s 23% standard VAT rate is slightly above the EU’s average VAT rate of ~21%, making it a bit pricier for businesses and consumers compared to countries like Germany (19%) or France (20%). This time Poland is not the highest! Hungary tops the EU list with a 27% VAT rate.


Poland’s VAT system might be complex, but with proper planning and the right tools, compliance doesn’t have to be a burden. If you’re unsure about how to handle VAT rates or classifications, don’t hesitate to reach out for professional support.