VAT is charged and paid at the general rate of 22 % of the selling price and is the same for the supply of goods and services. Exceptionally, it is paid at a lower rate of 9.5 %.
A company that enters the VAT system on a mandatory or voluntary basis pays only the difference between input and output VAT.
Input VAT: a company purchases goods and services from other companies in order to conduct its operations (e.g., electricity, heating, IT equipment, raw materials or semi-finished products for production, machinery, rental of business premises, etc.), paying VAT to the selling company (particular circumstances apply).
Output VAT: a company, on the other hand, sells goods or services to buyers while charging VAT on the purchase price. The buyer pays VAT to the company.
The difference that the company returns to FURS or vice versa: at the end of a specific period (monthly or quarterly), the accountant prepares a VAT settlement, which essentially means that they add up the VAT received by the company from buyers (input VAT) and subtracts output VAT from this amount.