- 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.
