VAT on Food Reduced to 0% – The European Commission has given its Non-formal Consent

The European Commission agreed to Poland’s request to lower VAT on food from 5 to 0 percent. It is one of the elements of the government’s anti-inflationary shield.

The initiative was introduced by the EU finance ministers this month. European Union finance ministers discussed the reform of the VAT rules to make the tax more responsive to “the needs of the present” and can be used as a rapid response tool during economic difficulties.

What is New in VAT on Food:

The information was provided by one of the EU officials to the Polsat News correspondent. Almost at the same time, Minister of Finance Tadeusz Kościńki referred to the issue of the tax reduction on the air of the First Program of Polish Radio.

According to Polsat News, the European Commission has given nonformal consent to reduce VAT on food from 5 to 0 percent. even before the EU directive on this matter officially becomes applicable. It is not expected to enter into force.

– This is very good news and we will reduce five to zero no earlier than February 1. It is necessary to adjust the cash registers – said the Minister of Finance Tadeusz Kościński – This will apply to all products that currently apply to 5 percent. As he added, they will not create a new VAT network.

Prime Minister Mateusz Morawiecki spoke this week about the high probability of the European Commission’s consent to reduce VAT on food. Earlier, the head of government talked about this matter, inter alia, with the head of the European Commission Ursula von der Leyen, and the responsible commissioners.