The Polish Order (Polski Ład) established an option for voluntary taxation for Financial Services
On February 23, the Ministry of Finance of Poland clarified the VAT treatment of financial services. Since January 1, 2022, banks, investment fund companies (TFIs), and similar firms offering financial services may be eligible to get tax breaks on the financial services they provide.
Financial services are generally exempt from VAT. The Polish Order (Polski Ład), on the other hand, established the opportunity of voluntary taxation. The tax option is also available in eight other European nations, including Germany, which, like Poland, solely taxes financial services delivered to businesses rather than individual individuals.
- By selecting this option, they will be able to claim a VAT deduction on the products and services they have bought.
- This option is particularly advantageous for organizations who are just entering the Polish market and want to develop their operations in the country.
- The usage of choices is optional and has no effect on the pricing of services provided to consumers and businesses.
Source: podatki.gov.pl
