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Poland likely to extend food inflation VAT rate into 2024

May 2023 – government considering extension of essential foods VAT cut into 2024

Polish Prime Minister, Mateusz Morawiecki, has said that his government is considering a new extension to the zero-VAT rating of essential foods into 2024. He pointed to the inflation rates of the next few months  – the March rate was over 18% – being key to deciding if to continue the tax subsidy.

Poland’s food VAT cut started in 2022 as inflation rocketed to over . It also cut VAT on fuels, but then had to reverse this as it transgressed EU VAT Directive rules.

March 2023 – food VAT extension extended to 31 December 2023

The current temporary VAT zero-rating of many foods, due to end on 30th June 2023 is extended again. This time until the end of 2023. This comes as Polish inflation hits over 18% in February 2023, a recent record. The move was revealed by Magdalena Rzeczkowska, Minister of Finance, this week.

The cut only covers basic foodstuffs such as milk and bread.

Aug 2022 Polish Council of Ministers approves further extension of VAT rate cuts

Poland has roll-over again various energy and food VAT rate cuts until 31 December 2022. They were due to expire on 31 October 2022.

European inflation VAT cuts have become popular across the region as inflation hits forty-year highs.

Fuel and food VAT rate cuts

The extension until 31 December 2022 will see the following rates applied:

  • 8% Fuel (diesel)
  • 5% Electricity and heating energy
  • 0% foods, fertilisers and gas

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