Temporary reduction of VAT tax rates

Temporary reduction of VAT tax rates from February 01, 2022

December 07, 2021 The European Council for Economic and Financial Affairs (ECOFIN), consisting of economic and finance ministers from all European Union member states, has prepared an amendment to the VAT directive.

The new regulations allow member states to reduce VAT rates on certain products, such as groceries and fuel.

VAT reductions

Based on these findings, on January 13, 2022. Polish Parliament passed amendments to the VAT Act [PL], introduced as part of the so-called Anti-Inflation Shield 2.0, which state that in the period from February 1 to July 31, 2022, VAT rates will be reduced respectively:

Down to 0% for:

certain groceries (listed in items 1-18 of Annex 10 to the VAT Act [PL], other than those classified according to the Polish Classification of Goods and Services in the food services group (PKWiU 56))
products improving soil properties, growth stimulators and growth substrates referred to in the Act of 10 July 2007 on fertilisers and fertilising [PL] (Journal of Laws of 2021, item 76), excluding mineral growth substrates
fertilizers and plant protection products, usually intended for use in agricultural production, listed in item 10 of Annex 3 to the VAT Act,
horticultural soil listed in item 12 of Annex 3 to the VAT Act,
natural gas (CN 2711 11 00 or 2711 21 00).

Down to 5% for:

electric energy (CN 2716 00 00),
heat energy.

Down to 8% for:

petrol (CN 2710 12 45 or 2710 12 49) and products derived from blending it with biocomponents, meeting quality requirements set out in separate regulations
gas oils (CN 2710 19 43 and 2710 20 11) and products resulting from the blending of these oils with bio-components, meeting quality requirements set out in separate regulations,
biocomponents constituting independent fuels, meeting quality requirements set forth in separate regulations, intended for internal combustion engines – regardless of CN code,
intended for internal combustion engines of natural gas (wet) and other gaseous hydrocarbons (CN 2711, excluding CN 2711 11 00 and 2711 21 00) and aliphatic hydrocarbons (CN 2901), liquefied.

Obligations of sellers

During the period when the changes are in force, the sellers are obliged to place legible information on the introduced VAT reduction – depending on the type of sale, it should be placed at the cash register in the store or sent together with the invoice (in case of gas and energy). The Polish Ministry of Finance will publish templates of such information in the Public Information Bulletin

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the HLB Poland website.

***

This publication is non-binding information and serves for general information purposes. The information provided does not constitute legal, tax or management advice and does not replace individual advice. Despite careful processing, all information in this publication is provided without any guarantee for the accuracy, up-to-date nature or completeness of the information. The information in this publication is not suitable as the sole basis for action and cannot replace actual advice in individual cases. The liability of the authors or getsix® are excluded. We kindly ask you to contact us directly for a binding consultation if required. The content of this publication iis the intellectual property of getsix® or its partner companies and is protected by copyright. Users of this information may download, print and copy the contents of the publication exclusively for their own purposes.