On 2 December 2022, the Finance Minister published a regulation on reduced VAT rates in 2023 (“Regulation”). The Regulation amends VAT rates with effect in 2023, much as a similar regulation in force in 2022 reduced VAT rates as part of the Anti-Inflation Shield. Effective in 2023, the Regulation scraps a number of current preferential rates, largely because the European Commission does not agree to their continued application to selected goods.

The Anti-Inflation Shield has been amended to reflect the Commission’s decision forbidding Poland to continue using the zero rate on motor fuel, electricity and natural gas. As of 1 January all these goods will again be subject to the rate of 23%.

1 January 2023 will also see resumption of the 8% rate on supplies of fertilizers, plant protection products and other products in support of farm production. These goods will enjoy the preferential zero rate until 31 December 2022. As a novelty, the 8% VAT will also apply to goods used in farm production, such as soil improvement or enhancement products and microbiological fertilizers.

On the other hand, the Regulation maintains until 30 June 2023 the application of zero rate to:

  • food products, such as fruit, vegetables, meat, dairy, cereals,
  • gifts made to the Government Strategic Reserves Agency, local authorities or healthcare entities in order to assist victims of the war in Ukraine.

The Regulation enters into force on 1 January 2023.

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