The Polish president has signed an amendment to the act on tax on goods and services, the aim of which is to temporarily – from February 1 to July 31 – reduce VAT rates to 0%, among others for food and gas and up to 8% for fuel, the President’s Chancellery informed. The amendment also extends the validity of the VAT reduction on electricity and heat to 5% until the end of July.
The purpose of the adopted law is to introduce a temporary reduction in the rates of tax on goods and services on certain goods as an element of counteracting inflation. Therefore, it introduces amendments to the Act of March 11, 2004 on tax on goods and services […] by lowering the rates tax on goods and services in the period from 1 February 2022 to 31 July 2022, stated in an announcement.
The act introduces a VAT rate of 0% for:
– food products listed in item 1 – 18 of Annex 10 to the Act on tax on goods and services,
– agents improving the properties of soil, growth stimulants and growing media, as referred to in the Act of 10 July 2007 on fertilizers and fertilization, excluding mineral substrates,
– fertilizers and plant protection products, usually intended for use in agricultural production, listed in item 10 of Annex 3 to the Act on tax on goods and services,
– horticultural land mentioned in item 12 of Annex 3 to the Act on tax on goods and services,
– natural gas (CN 2711 11 00 or 2711 21 00).
The provisions on the reduction of rates do not apply to the import of goods in shipments with a value not exceeding the equivalent of EUR 150, it is also given.
The amendment also introduces a VAT rate of 5% for:
– electric energy,
– thermal energy.
At the same time, a reduced VAT rate of 8% is introduced for:
– motor gasolines (CN 2710 12 45 or 2710 12 49) and products made of mixing these fuels with biocomponents, meeting the quality requirements specified in separate regulations,
– diesel oils (CN 2710 19 43 and 2710 20 11) and products resulting from mixing these oils with biocomponents, meeting the quality requirements specified in separate regulations,
– biocomponents constituting intrinsic fuels, meeting the quality requirements specified in separate regulations, intended for driving internal combustion engines – regardless of the CN code,
– designed to power natural gas (wet) internal gas engines and other gaseous hydrocarbons (CN 2711, excluding CN 2711 11 00 and 2711 21 00) and gaseous aliphatic hydrocarbons (CN 2901), liquefied.
The amendment assumes that in the period from February 1, 2022 to July 31.
In 2022, a seller selling goods subject to reduced rates is required to provide information about the reduced amount of tax on goods and services at the cash register at the company’s premises.
Similarly, a seller selling natural gas, electricity and heat is obliged to inform the buyer of the goods about the reduced amount of tax on goods and services in the above period.
The act comes into force on February 1, 2022.
Source: ISBnews
