- The current ruling coalition promised to reduce VAT to 8 percent for beauty industry services.
- This promise was fulfilled, and from April 1, 2024, cosmetic services, including manicure and pedicure, are taxed at 8 percent VAT.
- The National e-Invoice System will become mandatory from February and April 2026, changing the approach to invoicing and tax compliance.
- The VAT reduction aims to unify tax rates for hairdressing and cosmetic services, improve the economic situation of beauty entrepreneurs, reduce the gray market, activate women, and popularize cosmetic services.
- The beauty industry sees this as a lobbying success, hoping to maintain or reduce service prices amid high inflation.
- There are controversies, as EU law does not explicitly allow reduced VAT for cosmetic services, unlike hairdressing.
- The government argues for the VAT reduction based on similar measures in Ireland.
- Beauty entrepreneurs face challenges in correctly classifying services to apply the 8 percent VAT rate.
- Discussions focus on the classification of pedicure services, as podiatry is considered a medical profession, which may be exempt from VAT.
Source: crido.pl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
