From January 1, 2022, banks, investment fund companies or other entities may benefit from taxation of the financial services they provide. Choosing this option will allow them to deduct VAT on the purchased goods and services. The use of this option is voluntary and does not affect the price of services offered to consumers and entrepreneurs.

Financial services are generally VAT exempt. However, the changes contained in the Polish recovery plan Polski Lad introduced the possibility of their voluntary taxation.

Financial services to retail clients (natural persons) remain tax-exempt. As a result, the prices of services provided to consumers will not increase. Generally, the prices of financial services for business will not increase, because although these may be taxed, VAT will be deductible by the buyer (entrepreneur).

The bank or other entity that chooses the voluntary taxation will be bound by this choice for at least 2 years. After this date, it will be able to return to the exemption or extend the taxation.

The choice of taxation means the need to add VAT to all financial services in B2B relations, and not only to selected types of services, e.g. loan granting services.

To take advantage of taxation, it is enough to notify the head of the tax office about the choice of this option (in writing) and register one’s business as an active VAT payer.