Arriving to the City
General Precautions
Where to stay
Where to eat
Where to shop
VAT tax issue
City pictures
Useful Polish words
Curiosities
Back to Polonea.com

VAT - What's this ?

Boleslawiec market square


Boleslawiec market square


Boleslawiec market square

GENERAL INFORMATIONS

Value Added Tax (VAT) - is a tax which is added to all products sold to private individuals (companies too, but they may claim a refund).

It is already added to the price tags (unlike in USA) so the price you see is the full price you are to pay. The regular rate is 22% but some of the products have lower rates as 7%. This is also the case of Polish pottery as it belongs to the category of "hand made craft". However to get 7% VAT on the Polish pottery is not so easy to obtain - all your products have to be shown to special commission for qualification. Sometimes the smaller pottery workshops do not even apply.

VAT AND FOREIGNERS

When you come to shop as a private person and buy pottery for 100$ - the vat is 18$ (as 100$ has a VAT included - in this case real pottery value is 82$).
If an US company buy from a factory in Poland for export - they pay only 82$ for the equivalent pottery as you are obliged to pay the tax when you buy and take it away. Of course the US based firm have to pass the Polish customs clearance when exporting. When a private person shops it may theoretically claim for VAT refund too. We are not sure what is the procedure, but two things are certain:
  • You have to request for invoices (stating you want it for VAT refund) at the place where you shop. It is not a problem in factory shops, but may be in smaller ones.
  • Leaving the EU border you must report to the custom office. Since May 2004 , Polish border is no longer EU border - you have to do it in Germany (unless you fly from Poland directly to USA), probably at the airport.
Well, it all depends on how much pottery you want to buy. If you shop just for yourself and the quantity is not overwhelming - you can forget all this.

If you have a resale option in mind - you can claim the refund of VAT when leaving Germany, and present your items at the airport /that may be a problem/. Alternatively you can proceed to custom clearance and hire shipping company (but in this case what you get from VAT will probably be eaten up by the shippers fees).