- The Ministry of Finance is working on a regulation to reduce VAT from 23 percent to 8 percent for certain beauty services starting April 1, 2024.
- The proposal aims to improve the financial situation of businesses in the beauty sector, including micro, small, and medium enterprises.
- Lowering VAT could increase the availability of these services for consumers.
- The changes align with EU regulations, allowing member states to apply reduced VAT rates to similar goods and services.
- Although cosmetic services are not listed in the VAT directive, Ireland applies a reduced rate, and Poland plans to follow this precedent.
- The estimated budget impact of reducing VAT on certain cosmetic services ranges from -220.5 million PLN to -192.5 million PLN annually.
Source: eureka.mf.gov.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.
