Poland'S Value-Added Tax On Children'S Clothing Is In Violation Of EU Regulations.
The EU executive committee has proposed to the European Court of Justice (EuropeanCourtofJustice) that 7% of the value added tax on children's clothing, shoes and accessories should be lowered in Poland.
In order to avoid unfair competition between the 25 Member States, the EU executive committee stipulates that the VAT tax rates of all countries should be consistent. The new tax system has led many new member states to raise prices, and for fear of affecting consumption capacity, member states have been striving to increase the number of commodities that can enjoy lower VAT.
The European Union in Brussels accused Warsaw of breaking the EU rules on VAT, because although it has provided a list of items that can reduce VAT, it does not include children's clothing, shoes and other accessories.
In the communiqu issued by the European Commission, it is pointed out that even if Poland downgraded the VAT of the case item, as a part of fully supporting the principle of social and family harmony, and as a response to the challenges posed by population aging issues, the EU VAT norms should still be observed among Member States.
The EU executive committee suggested that the Poland government could use direct subsidy or income tax exemption strategy to help Poland families reduce the burden of children's clothing expenses.
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