Poland is likely to abolish VAT on food starting in February for at least six months, Prime Minister Mateusz Morawiecki said during a press conference. Poland will not wait for approval from the EU, the Polish prime minister stated.
The current VAT rules (the VAT Directive) do not allow a zero VAT rate on foodstuffs. The directive only permits the use of reduced rates, such as 5%.
A new tax measure has come into effect in Poland this week. "With that, we should see the first reductions in fuel prices at gas stations," Prime Minister Mateusz Morawiecki said Monday at the opening of a tunnel on the southern ring road of Warsaw.
Applying a 0% VAT rate on food will soon be possible in the EU under a new rates directive that was already agreed upon during the latest meeting of finance ministers.
On December 7, the ministers agreed to update the current VAT rules. The new rules give governments more flexibility in setting their tax rates. Further consultations with the European Parliament on the final text are still required for it to take effect.
Usually, EU provisions enter into force 20 days after publication in the Official Journal of the EU. This will only occur after the consultations with the European Parliament are completed.
The European Commission expects that the consultation with the European Parliament will be concluded by March 2022 at the latest.