VAT IN POLAND AND SELECTED EUROPEAN UNION COUNTRIES

Purpose: The aim of this study is to identify how the VAT rate in Poland compares to other European Union countries. Additionally, the article aims to emphasize the essence of harmonization of the tax systems of EU countries in the context of this tax and to point out problems with its collection. The study aims to identify similarities and differences in the VAT structure and rates. Methodology: This study employed a comparative analysis to examine the VAT system in Poland and selected European Union countries. The research covers Poland and other EU Member States, with the analysis based on data from 2023, which remains valid in the following year. Secondary data were sourced from the Official Website of the European Union. A comparative analysis of standard VAT rates and reduced rates across EU countries was conducted, focusing on both their number and values. The data were also subjected to statistical and descriptive analyses. Findings: The results of the study indicate that the tax arrangements for goods and services tax vary across EU Member States. This variation arises from EU regulations, which allow for a degree of discretion by setting only a lower limit for the standard rate. Member States are then permitted to apply rates suited to their individual needs, provided they comply with EU requirements. Compared to the approaches adopted in other countries, Poland’s standard VAT rate is higher than the EU average. Consequently, in the majority of Member States, the standard VAT rate is lower than 23%. This can be viewed positively from the perspective of generating greater tax revenue for the state budget, or negatively from the taxpayer’s viewpoint, who directly bears the cost of this tax, which impacts the price of goods and services subject to the rate. In Poland, two reduced rates are applied, a common practice in EU countries. These rates apply to a specific group of goods and services, thereby supporting citizens’ ability to purchase them. There is a difference of 3 percentage points (p.p.) between these rates in the Polish tax system, which can be seen as a relatively narrow range of reduced rates compared to other EU Member States. Non-compliance remains a problem for VAT collection. The problem raised is that consumers have no incentive to ask for an invoice because they prefer to buy products and services without additional VAT included in the purchase price. The carousel and missing trader frauds mentioned in the text also pose a significant threat to VAT harmonization. Originality: Although VAT is one of the main sources of budget revenues in European Union countries, there are only few studies comparing in detail the differences in its structure between Poland and other EU countries. Research so far focuses mainly on the general principles of harmonization, ignoring detailed differences in VAT rates. This study aims to fill this gap. This article examines the differences and similarities in the VAT systems of individual EU Member States, using examples from across the EU, in comparison with the solutions adopted in Poland. It is aimed at entrepreneurs planning to enter foreign markets, as well as anyone interested in VAT.