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country-icon Pologne

07.18.23

Reduced VAT extension on food products

While Poland’s reduced VAT rate for food products was initially projected to last until the middle of 2023, the Polish government has yet further extended this feature. This was initially extended in November 2022, as stated on the Polish Government Website.

The zero VAT rate for basic food products will now take effect until the end of 2023, once again re-affirming that EU Member States are compelled to extend fiscal policies to curb persistent inflation. In Poland specifically, inflation has reached an unwelcome high, reaching 18% in the first quarter of the year. Savings because of extending the reduced VAT rate are expected to be profound – amounting to c. PLN 5 billion, confirming that shifting VAT rates can have a sizeable and direct impact on consumer spending habits and savings.

The Ordinance relating to the VAT extension can be located here.

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