Zero VAT on basic groceries from February 1, 2022?

According to press reports, the government plans to introduce a zero VAT rate on basic groceries to counteract galloping inflation. In practice, the government’s actions constitute a pre-emptive implementation of the solutions contained in the proposed directive, which will probably enter into force in the middle of next year.

Thus, at present, the success of the government’s idea depends on the actions of the European Commission , whose decision (on the basis of the current regulations must be negative) will determine the further fate of the Polish government’s proposal. The Commission, in turn, is supposed to give silent approval for such actions that will be allowed in the future anyway. We will see how it will be in the near future, because the government plans to introduce changes from February 1, 2022.

Source PwC

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