Poland’s policy of zero VAT on food extended through 2023

By Liz
2 Min Read

Polish Prime Minister Mateusz Morawiecki announced on Monday that the zero VAT rate on food will be extended until the end of 2023 in an effort to reduce inflation for Polish citizens. This is one of the measures of the so-called Anti-Inflation Shield. He emphasized the government’s commitment to reducing taxes and supporting Polish families.

As emphasized by the prime minister, “fuels, energy, food, all these key product categories have been covered by our shield, which protects Poles from price increases.”

Government spokesperson Piotr Müller said on Monday that the prime minister’s decision was based on macroeconomic analyses.

“This is good news in terms of inflation prospects. We hope that inflation in the last months of this year will be in the single digits,” Müller said.

The zero VAT on food in Poland was introduced on Feb. 1, 2022. It was a part of the second Anti-Inflation Shield, which also lowered VAT rates on fuels and electricity. The tax reductions related to energy carriers expired at the end of 2022, but the application of the zero VAT on food has been extended until June 2023.

Zero VAT on food is one of the government’s measures aimed at limiting price increases. The current inflation rate in Poland is 13 percent, after a decrease from 14.7 percent in April and 16.1 percent in March. In the current inflation cycle, the peak was reached in February 2023, when inflation hit 18.4 percent.

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