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VAT on specialist journals remains at 8%

At the request of the Ombudsman, the Minister of Finance clarified the doubts about the changes in the VAT rate for specialist journals and its amount from 1 July 2020

At the request of the Ombudsman, the Minister of Finance clarified the doubts about the changes in the VAT rate for specialist journals and its amount from 1 July 2020

At the request of the Ombudsman, the Minister of Finance clarified the doubts about the changes in the VAT rate for specialist journals and its amount from 1 July 2020

Based on the original sound Article 8(2)(1) point (a) Act dated 9 August 2019 amending the Goods and Services Tax Act and certain other laws (Journal of Laws of 2019, item 1751, as amended) the legislator introduced within the period from 1 November 2019 up to day 31 March 2020 VAT rate 8% for, inter alia, non-regional or local magazines (so-called specialist journals).

Finally, the VAT rate for magazines, including specialist magazines, was to be 7%.

Then, based on Act dated 31 March 2020 amending the Act on Special Solutions for Prevention, Prevention and Control COVID-19, other infectious diseases and their emergency situations and certain other laws (Journal of Laws of 2020, item 568) This transitional period provides for 8% VAT rate extended until 30 June 2020

VAT rate for specialist journals also from 1 July 2020 is unchanged and is 8%

The Ombudsman received signals about the barriers and obstacles associated with these changes in the VAT rate for specialist magazines. The notification received from the operator of the publishing house revealed that changes in VAT rates, including extension of transitional periods, often necessitated the withdrawal of printed magazine expenditures in the event that a different VAT rate is printed on their cover than after the change. Importantly, this generates additional costs for entrepreneurs.

Consequently, by letter dated 17 June 2020 An SME spokesperson pointed out the above issue to the Finance Minister requesting clarification of this problematic issue. By letter dated 26 June 2020 The Minister of Finance explained that the specific provision contained in the present case applies under Article 146aa Act dated 11 March 2004 on tax on goods and services (Journal of Laws of 2020, item 106, as amended) and on the basis of this, the VAT rate for specialist journals also from 1 July 2020 is unchanged and is 8%.

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