Zero VAT Rate on Food or Books? It Depends on the Government: EU Directive Amendment.

• The amendment to the VAT directive adopted in 2022 gives EU member states the option to introduce a zero tax rate
• Previously, countries could apply two reduced rates, but not lower than 5%, only for specific goods and services
• The new changes allow for a 0% tax rate on goods that satisfy basic needs, such as food, water, medical products, health and hygiene products, transportation, and cultural items
• Member states can choose seven categories from over 30 listed by the EU legislator to apply a 0% or lower than 5% tax rate
• The government has the freedom to introduce a zero VAT rate on food permanently, not just temporarily like during anti-inflation measures

Source: mddp.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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