Warsaw Taxi Cab
Polish Taxi Cabs Limit Work On Poland's New Year's Eve
Warsaw, Poland - 31 December, 2007 Because of Polish Value Added Tax laws, many taxi cabs in Poland will not be taking passengers on New Year's Eve. But they will be available immediately after midnight as they start a new accounting year.
Taxi companies do not have to pay Value Added Tax (VAT) on passenger fares up to a given level. So depending on how much money they made during the year, they may be at a point that they will exceed that level and have to pay VAT on all the money they took in over the year.
And under the VAT law that applies to taxi cabs, even if they exceed that limit and have to suddenly pay VAT, they cannot deduct the VAT that they paid on the gasoline that they used. So to them, exceeding the income limit has a particularly significant financial impact on their results for the year.
Some of taxi companies plan for the year end by limiting their services in September and October. They do so in order to maintain their customer loyalty by being able to provide cab service to their regular customers on New Year's Eve.
Taxi companies say that if the Value Added Tax law is changed to allow the deduction of VAT on gasoline, then there might be more cabs available at the year end. But as it stands now, they limit their income in order to not suffer the large loss at the end of the year.
It has been pointed out that if people cannot take cabs to parties, they are likely to drive to them. And that means that they are likely to drive the cars home after the parties. The possibility of alcohol laden drivers being on the roads in higher than if cabs were available.
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