Taxi rides via digital platforms face shift in VAT rate from 8% to 23%
Poland’s Director of National Tax Information has indicated that digital platforms facilitating taxi or ride-sharing are to be reclassified to ‘other transport support services’ at 23% VAT. Currently, they are treated as taxi services at the reduced VAT rate of 8%.
Since many taxi drivers or individuals providing ride sharing part-time are below the VAT registration threshold of PLN 207,000 this would represent a significant rise in costs as the VAT would not be recoverable. They would likely be forced into raising their own ride charges.
The EU’s VAT in the Digital Age reforms is proposing making accommodation and ride sharing platforms liable for VAT from 2025. The UK is now requiring full VAT liabilities on ride sharing trips via digital platforms.