The owners of breed cats in Poland face a fresh challenge – tax introduces a work on civilian law (PCC) for the acquisition of animals with a value exceeding PLN 1000. In the absence of a notification and payment of the taxation to owners, an administrative punishment may be imposed even PLN 86,000.
The fresh rules rise controversy and force buyers to exercise caution erstwhile buying a pot from breeders. PCC taxation is 2% of transaction value, which in case of buying popular breeds specified as British, Bengali or maine coon cats, means additional expenditure. For example, erstwhile buying a cat for PLN 5000 the buyer must pay 100 PLN tax. The work rests on the buyer who has 14 days to submit a PCC-3 declaration To the IRS.
Who has to pay the tax?
The taxation applies to private persons purchasing animals from another private persons or farms that do not issue VAT invoices. The following shall be exempted from the obligation:
- adoption of cats from shelters and foundations,
- taking in homeless animals,
- transactions in which the seller issues a VAT invoice.
This means that most of the transactions in shelters or foundations will not be taxed. However, the increasing popularity of cat breeding, where prices frequently exceed respective 1000 zlotys, makes more and more people gotta include taxation in their budget.
How will changes affect the livestock market?
The fresh taxation can importantly change the scenery of the Polish animal husbandry market. Farmers, in order to avoid taxation problems, can choose to conduct business and issue VAT invoices. This in turn will increase the price of race animals. Currently, the average price of a breed cat in Poland varies from 3000 to 8000 złand in uncommon breeds may exceed PLN 10,000.
These changes may besides increase the size of grey area. any people may choose to sale animals informally to avoid tax. This leads to a hazard of deterioration in animal husbandry and welfare. deficiency of adequate regulation and control may consequence in an increase in the number of pseudo-breeding that frequently do not meet animal protection standards.
Adoption alternatively of buying – a fresh trend among Poles?
Additional costs related to the acquisition of racial cats can direct Poles' attention to adoption. Currently, in hostels in Poland there is about 15,000 cats waiting for fresh homes. Adoption does not affect any taxation costs, and more and more people see the benefits of taking in a pet who needs a home.
This may be a chance to reduce the number of homeless animals in Poland, but at the same time it may affect the crisis in professional farms that will lose any of their customers. Farmers are already informing that the introduction of fresh regulations could have a negative impact on the industry, which is inactive facing advanced animal and veterinary care costs.
Administrative complexity and punishment risk
The introduction of a transaction taxation on cat purchases poses additional challenges for the taxation administration. Control of transactions between individuals may be hard to carry out and the deficiency of adequate verification mechanisms may lead to administrative chaos.
Tax offices will gotta analyse transaction data, and the deficiency of a buyer's notification may lead to advanced penalties. In 2023 in Poland, the average punishment for no declaration of PCC was PLN 12,000However, in peculiar cases it may scope 86,000 PLNwhich is close to the average price of the fresh car.
What to do to avoid fiscal problems?
To avoid financial penalties, it is worth following respective rules:
- Check the seller carefully – make certain the transaction requires a PCC declaration.
- Report transaction on time – you have 14 days from the date of purchase.
- Keep acquisition proof – in the case of fiscal control, it is crucial to have evidence of the value of the transaction.
- Use VAT invoices – erstwhile buying from registered farms that issue invoices, you avoid the taxation obligation.
More here:
Cat tax. You can get up to 86,000 gold penalties for deficiency of payment
