No 8% VAT on Ukrainian food oil

• The Ministry of Finance stated that there will not be an 8% VAT on Ukrainian food oil.
• VAT on food products does not depend on their place of origin and applies regardless of whether they are domestic, EU, or imported from third countries.
• The Ministry of Finance clarified that food products listed in Annex 10 of the VAT Act are subject to a 5% tax rate, including edible fats and oils of animal, vegetable, or microbiological origin.
• Non-edible fats and oils are taxed at a rate of 23%.
• During the transitional period from February 1, 2022, to March 31, 2024, products taxed at a 5% rate are subject to a 0% VAT rate as part of anti-inflationary measures.
• The VAT rate (including 0% or 5%) is not dependent on the country of origin of the goods.
• The differentiation of VAT rates on food products imported from Ukraine and domestic products is prohibited by EU law and the case law of the Court of Justice of the European Union.
• Such discrimination would violate the principle of VAT neutrality.
• This principle will not change regardless of whether the anti-inflationary measures are extended after March 31, 2022, and whether the VAT rate on food products from Annex 10 returns to 5%.

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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