Lidia Adamek-Baczyńska, Monika Maćkowiak
Puls Biznesu

1 July 2020 saw entry into force of a new VAT matrix which replaced the PKWiU classification with the combined nomenclature (CN) codes. However, the matrix refers to some goods by description, for example where it mentions “animal feed” as set out under item 10 of Schedule 3 to the VAT Act concerning the 8% rate. A question then arises what is “animal feed”? There is no statutory definition of feed in Poland. The EU definition in Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 may be helpful. In accordance with that definition, the supply, importation and intra-Community acquisition of feed and related additives should enjoy the 8% rate of VAT. Such a broad definition of “feed” has been acknowledged by Polish tax authorities, i.e. in binding rate information dated 3 July 2020, ref. 0115-KDST2-1.450.72.2020.2.AW, where it was held that 8% VAT applies to feed additives. However, it should be remembered that the taxation of goods and services for which no definition has been provided will continue to be at the discretion of tax authorities.