THE MEANING OF INDIRECT TAXES IN AGRICULTURAL ACTIVITY

The purpose of the article was to present the specifics of indirect taxes in agricultural activities in Poland, the analysis of the VAT rates in the European Union and the presentation of survey results relating to indirect taxes in agriculture. Indirect taxes, i.e. VAT and excise tax, cause delamination of the market prices of goods and services. In the agricultural activity what is crucial are VAT rates spread between the base rate and the reduced rate relating to agricultural production. The resulting difference often causes excess input VAT and results in an obtained tax return for the farmer. The farmer (depending on the method of VAT) has the possibility to receive a lump sum refund of VAT. In addition, the farmer has the opportunity to receive lump-sum refunds on the excise tax, if he purchases fuel for agricultural purposes. Specific tax solutions for agriculture, related to indirect taxes, are tax preferences and substantially affect investment decisions farms. The author of the article used statistical data from the European Commission’s report VAT rates applied in the Member States of the European Community, Situation at 1st January 2015 and the results of surveys conducted among farms of Middle Pomerania in Poland