Finance Minister Magdalena Rzeczkowska has signed a regulation extending the maintenance of the zero VAT rate on food. “The regulation also provides for the extension of VAT preferences for donations to Ukraine and a reduction in the VAT rate on certain fertiliser products”, the Finance Ministry said.

“We are extending the zero VAT rate on food. At present, this rate will remain applicable to basic food products such as fruit, vegetables, meat, dairy and cereal products. At the same time, we are focusing our efforts on the price of energy and its carriers as well as the price of gas. We are constantly monitoring the situation and responding to external shocks”, said Minister Rzeczkowska.

The regulation also provides for the maintenance until the end of June 2023 of the 0% VAT rate on donations to the Government Strategic Reserve Agency, medical entities, local government units – transferred for the purpose of helping victims of the consequences of warfare in Ukraine, and the reduction to 8% of the rate of fertiliser products for 2 years, which before the introduction of the anti-inflation shield were taxed at this rate.

The anti-inflation shield in its current form is valid until the end of 2022. This means a reduction in VAT rates on basic food products, electricity and heat, natural gas, certain motor fuels and fertilisers and inputs used in agricultural production.

The anti-inflation shield includes also a reduction in excise duty on electricity until the end of the year, an exemption from excise duty on electricity for households, a reduction in excise duty rates on certain motor fuels and an exemption from sales tax on certain fuels. A lower excise duty also applies to light fuel oil.

Adrian Andrzejewski