The analysis of VAT revenue in Poland – the size and determinants

Aneta Kaczyńska


Value Added Tax revenue in Poland represents a significant source of budget income since its introduction in 1993. The standard rate of 22% at the moment of implementing the VAT was increased only once to 23% in the aftermath of the 2008 financial crisis. The main purpose was to improve budget balance by the higher VAT revenues. This article aims at analysing the VAT income in Poland with an evaluation of efficiency ratio and determining factors affecting the volume of VAT collected. The results indicate that an increase of standard VAT rate in 2011 has been accompanied by the decline of VAT revenue in subsequent years which was also confirmed by the decrease of VAT efficiency ratio. However, the standard rate of the VAT could not be included in the regression model because of the strong correlation with Gross Domestic Product. Therefore, for years 2000–2013 a linear regression model was built using VAT revenue as a dependent variable and GDP as an explanatory variable. It occurred that VAT revenue in Poland was strongly dependent on the economic situation measured by GDP. Another finding is that VAT revenues in Poland are very procyclical in the short run.
Author Aneta Kaczyńska (WE / KFP)
Aneta Kaczyńska,,
- Department of Public Finance
Publication size in sheets0.5
Book Mokrys Michal, Badura Stefan (eds.): Proceedings of 3rd Global Virtual Conference, GV - Global Virtual Conference is Scientific Conference with International Attendance, vol. 3, no. 1, 2015, EDIS - Publishing Institution of the University of Zilina, ISBN 978-80-554-1003-6, 211 p.
Keywords in EnglishVAT revenue in Poland, VAT efficiency ratio, the standard rate of the VAT, linear regression, VAT revenue determinants
Languageen angielski
Score (nominal)0
Citation count*4 (2020-09-26)
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