WOOD AND FURNITURE INDUSTRY FACING NEW CHALLENGES AND OPPORTUNITIES
The wood and furniture industry in Poland has been a showcase for our industry internationally for years. Poland is the largest furniture exporter in the EU and is second only to Germany in terms of foreign sales of wood products. In terms of total foreign trade surplus, the wood and furniture industry rivals the much larger food sector, and the furniture industry itself is one of the most foreign market-oriented branches of domestic processing.
Poland has for years maintained its position as one of the largest furniture exporters in the world. Much of its production is based on locally sourced raw materials, and products are mainly exported to European markets, but also to countries outside the EU. The industry, which is strongly export-oriented, generates 65% of its revenue from foreign markets, making it one of the most international branches of the Polish manufacturing industry. However, the war in Ukraine, the energy crisis and the decline in consumer demand have caused a slowdown in production, and since mid-2022 the industry has seen a clear downward trend in production volumes. However, the value of sold production remains high thanks to the increase in product prices.
Adapting to dynamic market changes requires entrepreneurs to innovate, which can be encouraged through various tax credits. One of these is the relief for research and development (R&D), which can be used, for example, by the furniture industry when developing new product lines, such as customisable furniture or furniture with modern features. With this relief, entrepreneurs can claim reimbursement for part of the costs associated with the creation of prototypes. Another option is the relief for robotisation, which is particularly useful in labour-intensive industries. The automation of processes allows for a significant increase in efficiency, and this relief reduces the costs of implementing new technologies. Entrepreneurs investing in foreign markets, on the other hand, can benefit from the expansion relief, which supports marketing and logistics activities, facilitating the development of export activities.
As a tax law firm with experience in serving manufacturing companies, NTAX supports businesses in the correct reporting of international transactions, helping to avoid sanctions and optimise VAT and customs processes. Our services include: support in tax and customs reporting, tax optimisation, accounting compliance monitoring, as well as the identification of tax risks and relief opportunities. NTAX also supports businesses in maximising the benefits of tax reliefs such as R&D, expansion and robotisation. Our sector-specific experience helps companies manage tax liabilities effectively, leveraging the full range of available fiscal instruments.
The expected economic recovery, combined with softer monetary policy and falling inflation, will create growth opportunities for the sector. With tax relief, entrepreneurs can invest in growth, innovation and overseas expansion, which will ensure that the industry continues to thrive. NTAX offers support in taking advantage of these opportunities by helping wood and furniture companies understand and implement tax solutions to optimise their operations in Poland and abroad.
