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

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…