02.04.22

Reduction in VAT rates for food and energy

There is a recurring trend across Europe this winter as energy, electricity and heating VAT rates come more sharply into focus- a response to rising inflation on the continent, as well as the effects of the Covid-19 pandemic. Poland is no exception to this and the Sejm- the Polish Parliament- has responded to rising inflation with proposals to amend the VAT Act. These measures are part of a programme referred to as ‘anti-inflation shield 2.0’, which, as the name suggests, is a direct response to rising inflation in Poland.
• Basic food and beverages currently subject to the 5% VAT rate will be subject to 0% VAT;
• Goods used to drive internal combustion engines (diesel oil, biocomponents constituting self-contained fuels, motor gasoline, natural gas (wet), liquefied LPG) – currently subject to the 23% VAT rate – will be taxed at the 8% VAT rate;
• Fertilizers, plant protection chemicals, horticultural soil and other means of supporting agricultural production – currently subject to the 8% VAT rate – will be taxed at 0% VAT;
• Natural gas (CN 2711 11 00 or 2711 21 00) – will be taxed at 0% VAT;
• Electricity (CN 2716 00 00) – will be subject to VAT 5%;
• Heat energy – will be subject to VAT 5%.
Tungsten Network’s portal accommodates these rates.