Poland: Reduced VAT rates on certain goods, through 31 July 2022

The legislation is aimed at lowering retail prices to reduce the effect of surging inflation.

Through 31 July 2022

Legislation amending the value added tax (VAT) law provides for a temporary reduction of VAT rates on certain categories of goods, beginning 1 February 2022 through 31 July 2022.

The legislation is aimed at lowering retail prices to reduce the effect of surging inflation.

Under the new legislation, the reduced 5% VAT rate on electricity is to apply until 31 July 2022, while the 0% VAT rate on natural gas is to apply from 1 January 2022 through 31 July 2022.

Furthermore, there are reduced VAT rates on:

  • Food products listed in items 1-18 of appendix 10 to the VAT law (such as fish and fish products, dairy products, vegetables, fruit, including fruit and vegetable products, cereals, products of the milling industry, cereal and bakery products and some beverages)—from 5% to 0%
  • Fertilizers, pesticides, potting soil, and other measures supporting agricultural productions—from 8% to 0%
  • Diesel fuel and motor fuels—from 23% to 8%, effective from 1 January 2022 through 31 July 2022

Read a January 2022 report prepared by the KPMG member firm in Poland

 

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