Amendments to VAT and Excise Duty in Poland in 2025

In 2025, Poland implemented significant changes to its Value Added Tax (VAT) and excise duty regulations, affecting various sectors and products.

Zero VAT Rate for Certain Vessels: A 0% VAT rate is now applied to sea vessels and lifeboats that previously did not qualify as seagoing vessels, potentially reducing costs for maritime rescue services.

Maintained 8% VAT Rate for Specific Medical Products: The preferential 8% VAT rate continues for medical products approved under outdated regulations, preventing price increases for patients and healthcare facilities.

Standard VAT Rate Extended to Certain Hemp Products: Hemp products intended for smoking or inhalation without combustion are now subject to the standard VAT rate, aiming to close tax loopholes in the hemp market.

Clarification on Agricultural Products: Definitions for fertilizers, plant protection products, and feeds have been clarified to resolve previous ambiguities and application difficulties.

The reverse charge mechanism, shifting VAT accounting from the seller to the buyer, has been extended for transactions involving gas, electricity, and greenhouse gas emission allowances between active VAT taxpayers. This extension aims to reduce tax abuse and simplify settlements in the energy and gas sectors.

The requirement to integrate cash registers with payment terminals has been abolished due to challenges faced by entrepreneurs in implementing full integration. This decision reduces administrative burdens while maintaining tax system integrity.

Refunds for Temporarily Registered Export Vehicles: Entities paying excise duty on passenger cars temporarily registered in Poland for export can now apply for refunds, facilitating international car trade.

Excise Exemption for R&D Vehicles: Vehicles used for research and development purposes, subject to professional registration, are exempt from excise duty, promoting innovation in the automotive sector.

From August 2025, all smoking devices, including e-cigarettes and heating devices, will incur an excise duty of PLN 40, leading to price increases of approximately PLN 50 after VAT. Nicotine and non-nicotine pouches will also be taxed, with rates starting at PLN 2.4 and eventually reaching PLN 4. Additionally, a ban on the sale and advertising of nicotine-free e-cigarettes and pouches, as well as flavored heating cartridges, has been introduced to reduce addiction rates and protect public health.

These amendments reflect Poland’s efforts to streamline tax processes, close loopholes, and promote public health through fiscal policy.