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Poland Provides Further VAT Reduction as Part of "Anti-Inflation Shield 2.0"

14 January 2022

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Approved Changes

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Poland

The Polish government has announced its "Anti-Inflation Shield 2.0" package, which expands upon tax rate cuts for energy supplies from the beginning of the year. The measures of the second package include the following: The VAT rate on fuel is reduced from 23% to 8%; A VAT zero rate is provided for: basic foods products gas (natural gas); and fertilizer for agricultural production; The 5% VAT rate for electricity is extended; and The VAT rate on heating (thermal energy) is further reduced from 8% to 5%. The measures will apply from 1 February to 31 July 2022. Note, the legislation...