The changed act on tax on goods and services will become binding on January 1, 2011. As it has been foretold for a long time, the change will result in an increase in tax rates. At the same time a beneficial interim provision i.e. the new art. 41 item 14f of the act on VAT will enable tax savings in some particular cases. The condition which has to be fulfilled is paying for the next year’s services or delivery of goods already in this year e.g. the tax payer should pay a prepayment, an advance payment, a deposit or an installment. The higher rate will be applicable only to the part of the receivables which is left for settlement in the new year.

Contact person: Paweł Nowak, pn@pnplaw.pl