Recently in Poland, the government has introduced Anti-Inflation Shield v.1.0 and Anti-Inflation Shield v.2.0. The solutions are designed to bring down the VAT rates for the specified goods. The reductions are time limited. Please see below the list of reductions in VAT rates:
As from 1st February 2022 to 31st July 2022:
- fuels: reduction of VAT rate from 23% to 8%,
- Electricity: reduction the VAT rate from 23% to 5% (as from 1st January 2022),
- system heat: reduction the VAT rate from 23% to 5% (as from 1st January 2022 from 23% to 8%),
- fertilizers and other selected means used in agricultural production: introduction of 0% VAT rate, the EU Commission is currently questioning this solution as non-compliant with the EU law, the case is undergoing,
- natural gas: introduction of 0% VAT rate (from 1st January 2022, reduction the VAT rate from 23% to 8%),
- basic food products, currently taxed at 5% VAT rate: reduction to 0% VAT rate*.
*Basic food products taxed at 0% VAT rate from 1st February to 31st July 2022 (classified based on the CN codes):
| CN Code | Description |
|---|---|
| CN 02 | Meat and edible meat offal |
| CN ex 03 | Fish and crustaceans, mollusks and other aquatic invertebrates – excluding lobsters and octopuses and other goods covered by CN 0306 – CN 0308, |
| CN 04 | Dairy products; bird eggs; natural honey; edible products of animal origin, not elsewhere specified or included, |
| CN 0504 00 00 | Intestines, bladders and stomachs of animals (except fish), whole and in pieces, fresh, chilled, frozen, salted, in brine, dried or smoked |
| CN 07 | Vegetables and certain roots and tubers, edible |
| CN 08 | Edible fruits and nuts; peel of citrus fruits or melons |
| CN 10 | Cereals |
| CN 11 | Products of the milling industry; malt; starches; inulin; wheat gluten |
| CN ex 12 | Oil seeds and fruits; miscellaneous grains, seeds and fruits; industrial or medicinal plants; straw and fodder – only goods intended for human consumption |
| CN ex 15 | Fats and oils of animal or vegetable or microbiological origin and their degradation products; prepared edible fats; waxes of animal or vegetable origin – exclusively edible |
| CN ex 16 | Preparations of meat, fish or crustaceans, mollusks or other aquatic invertebrates, or of insects , excluding: 1. caviar and caviar substitutes covered by CN 1604, 2. preparations of lobsters and octopus and of other goods falling within CN 1603 00 and CN 1605 |
| CN 19 | Preparations of cereals, flour, starch or milk; confectionery bread |
| CN ex 20 | Preparations of vegetables, fruits, nuts or other parts of plants – excluding products with an actual alcoholic strength by weight of more than 1.2% |
| CN 2104 | Soups and broths and preparations therefor; complex food preparations, homogenized |
| CN 2105 00 | Ice cream and other edible ice, whether or not containing cocoa |
| CN ex 2106 | Fats composed of vegetable or animal products (mixes), cheese-like products (cheese analogues) and infant formulae, including infant milk, follow-on formulae, including follow-on milk, milk and modified milk for children, as referred to in the Act of 25 August 2006 on food and nutrition safety |
| CN 2202 | Waters, including mineral waters and aerated waters, containing added sugar or other sweetening matter, or aromatized waters and other non-alcoholic beverages, excluding fruit juices, of nuts and vegetables, falling within CN heading 2009 – only products of: 1. yoghurts, buttermilk, kefirs, milk not covered by CN Chapter 04, excluding products containing coffee and its extracts, essences or concentrates, 2. non-alcoholic beverages, in which the mass share of fruit, vegetable or fruit and vegetable juice is not less than 20% of the raw material composition, 3. infant formulae, including infant milk, follow-on formulae, including follow-on milk, milk and modified milk for children, referred to in the Act of 25 August 2006 on food and nutrition safety, 4. not containing products falling within CN headings 0401 to 0404 or fat obtained from products falling within CN headings 0401 to 0404: (a) soy-based beverages with a protein content by weight of 2,8 % or more (CN 2202 99 11), (b) soy-based beverages with a protein content of less than 2,8 % by weight; beverages based on nuts falling within CN Chapter 08, cereals falling within Chapter 10 of the CN or seeds falling within Chapter 12 of the CN (CN 2202 99 15) |
| Regardless of the CN | Dietary foods for special medical purposes |
We wrote about a similar topic earlier: EU agreement referring to the VAT exemption and lower VAT rates
Read more about our VAT Reporting Services: VAT reporting in Poland