In an announcement on March 12, 2024, the Ministry of Finance stated that the reduced VAT rate for basic food products will not be prolonged past March 31, 2024. The Ministry of Finance’s decision was based on recent inflation readings and the foreseen price dynamics of basic food products covered by the temporary 0% VAT rate.
As a reminder:
The reduced VAT rate on basic food products was in effect since February 1, 2022. It was introduced after an inflation reading for January 2022 of 9.2% (Y2Y).
At the end of 2023, the Minister of Finance issued a decree prolonging until March 31, 2024, the 0% VAT rate for food goods listed in items 1-18 of Appendix 10 to the VAT Act, other than those classified according to the Polish Classification of Goods and Services in the grouping of food services (PKWiU 56).
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