From January 1, 2008, the preferential 7% VAT rate in Poland will include new apartments not larger than 150 square metres, and single-family houses not larger than 300 square metres.
The Polish Parliament has decided that from January 1, 2008, the preferential 7% VAT rate in Poland will include new apartments not larger than 150 square metres, and single-family houses not larger than 300 square metres, bought from property developers and housing co-operatives.
The bill was passed unanimously, by 426 votes.
The move is designed to prevent a VAT rise in the building industry, from 2008, when the transitional period negotiated in the EU Accession Treaty, which allowed a lowered tax rate, will be up.
The higher rate of VAT in Poland stands at 22 percent.
The bill does neither include any restrictions concerning applying the preferential rate to renovations.
The bill also prolongs the possibility of reclaiming part of the expenses on building materials, made by persons building their houses in a so-called economic system, i.e. within their capacity.
Currently, the law permits such a tax rebate only till the end of 2007.
