From April 1, 2024, cosmetic services will be subject to lower VAT. A draft regulation on this matter has been published. The Ministry of Finance announced how much revenues to the state budget may decrease in this respect.
A draft regulation of the Minister of Finance amending the regulation on reduced rates of tax on goods and services has been published on the website of the Government Legislation Center. The proposal was prepared by Ministry of Finance. The project was submitted for public consultations and approvals.
“The aim of the proposed regulation is to reduce – from 23% to 8% – the VAT rate for specific cosmetic services from April 1, 2024, which will result in the unification of the VAT rate for services performed in the so-called ‘beauty’ industry, classified in the same grouping PKWiU 96.02.1” – we read in the impact assessment of the regulation attached to the project.
Hairdressing services are already covered by 8%. rate VAT. According to the project, these services will now include, among others: for beauty services, manicure and pedicure provided both in salons and at home.
It was noted that the implementation of the solution will have a negative impact on state budget revenues. According to the estimates of the Ministry of Finance, in 2024 the state budget revenues in this respect will decrease by PLN 128.3 million. In 2025, this is to be a loss of PLN 207.9 million, and in 2026 – PLN 221.7 million.
“In the years 2027-2033, the effect is estimated at the level of approximately PLN -234.5 million for each year. The total effect (for 10 years) of reducing the VAT rate from 23% to 8% will have a negative impact on the state budget revenues in amounting to approximately PLN -2,200 million,” we read in the OSR.
Election announcement
Prime Minister Donald Tusk at the end of January this year. announced that on April 1 this year there will be a decision on reduced VAT for the so-called beauty industry. The Prime Minister recalled that reducing VAT on cosmetics industry services was his commitment during the election campaign.
The head of government pointed out that the beauty industry employs approximately 30,000 people. companies employing nearly 100,000 people.
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