Poland Ends Temporary Zero VAT Rate for Foodstuffs

End of the Zero VAT Rate for Foodstuffs in Poland by 1 April 2024

The Polish Government announced the end of the zero VAT rate for basic food products in Poland. Instead, those products are subject to 5% VAT rate since 1 April 2024. 

The products in scope of these measures covered basic food products such as fruits, vegetables, meat, dairy products or cereal products.

The end of the zero VAT rate comes after several postponements of this extraordinary measure against inflation.

The Temporary Zero VAT Rate in Poland

Polish government announced a temporary reduction in VAT rates starting 1 February 2022 for certain food products, fertilizers, fuels, natural gas, and energy up until 31 December 2022:

• 0% VAT for basic food products, such as meat and fish and their preparations, dairy products, vegetables and fruits and their preparations, cereals, products of the milling industry, processed cereals and bakery products, some drinks (e.g. containing at least 20% fruit or vegetable juice, milk drinks and also vegetable milks).
• 0% for fertilizers, plant protection products, horticultural soil, growth stimulants, etc.
• 0% for natural gas.
• 5% for electricity and thermal energy.
• 8% for diesel fuels.

The measure entered into force on 1 February 2022 and was initially applicable for a period of six months, until 31 July, 2022. However, the measure remained in force until the end of 2022. The purpose was to combat inflation lowering the prices for consumers.

Separately, the zero VAT rate for food products was further extended and the Government announced that it would remain effective after 31 December 2022. See here the official announce. This extraordinary zero VAT rate on basic food products ended by 31 March 2024, and currently those products are subject to 5% VAT rate.