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.
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
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