THE DILEMMA OF CHOOSING THE FORM OF VAT TAXATION IN AGRICULTURE IN POLAND.

The aim of the paper is to present the most important problem of VAT in Polish agriculture. The key issue concerns the assessment of the attempt to optimize the economic and financial performance of the VAT settlement. The farmer chooses and settles VAT in a flat-rate system or according to the general rules. The question is which form is more favourable. On the basis of mathematical formulas, an appropriate criterion has been selected for the choice of the form of VAT settlements in agriculture. Even though VAT has been functioning in Polish agriculture for many years, its rules are misinterpreted. From the point of view of the ordinary farmer, it means many cases of erroneous choices which, consequently, reduce his efficiency. This paper systemises knowledge in this regard. It also shows possible changes in the law and their potential impact on farmers’ choices of a VAT taxation form. [ABSTRACT FROM AUTHOR]