No Return to Zero VAT on Food Despite High Inflation

• Despite high inflation, the Ministry of Finance does not plan to reduce the VAT rate to 0% on basic food items or other essential goods and services
• Deputy Minister Jarosław Neneman announced this in response to a parliamentary inquiry
• Lawmakers referenced statements by tax advisor Tomasz Michalik, a partner at MDDP, who noted that EU regulations allow for a permanent zero VAT rate on food
• Michalik clarified that the Polish government has the freedom to choose which categories of goods can have this rate
• The government could decide on a permanent VAT reduction for food, not just a temporary one as during the anti-inflation shields
• Recall that one anti-inflation shield began on February 1, 2022, reducing VAT from 5% to 0% on listed food products like fruits, vegetables, meat, dairy, and grain products until the end of March 2024

Source: podatki.gazetaprawna.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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