The tax system: – Income tax and VAT entity engaged in the economic activity is obliged to pay income tax. For individuals, it is personal income tax. For other entities, it is the corporate income tax, which is to be settled according to a valid tax scale or as a flat tax rate of 19% (standard rate). VAT tax in Poland in most cases amounts to 23% (the basic VAT rate). A reduced rate (8%, 5% or 0%) is applied in cases strictly indicated by the statute. The statute also provides for VAT exemptions (e.g. in cases when the volume of sale does not exceed the amount specified in the statute). In cases of doubt as to the obligation of tax payment in a particular situation, the entrepreneur may address a competent tax authority with the request to issue the individual tax interpretation which is released on behalf of Ministry of Finance and is subsequently binding for this entrepreneur .