The government has announced another project to counteract the effects of inflation. A bill to amend the Act on Value Added Tax, after the adoption by the Polish Sejm, was submitted to the Senate. The Act is to be in force for 6 months, starting from February 1, 2022.

The aim of the amendment of the previously adopted Act, called Anti-inflation Package 1.0., is to mitigate the negative effects caused by inflations, in particular to lower the costs of living. Therefore, the amendment of the Act on VAT provides for reductions or maintaining of previously introduced VAT rates on some goods.

The solutions introduced by Anti-inflation Package 2.0. include:

• reductions of VAT on fuel from 23% to 8%,
• keeping 5% VAT rate on electricity,
• reduction of VAT rate on heating,
• introduction of a zero VAT rate on fertilizers and other selected means of agricultural production,
• introduction of a zero VAT rate on natural gas,
• introduction of a zero VAT rate on basic alimentary products which are currently subject to 5% rate.

What is more, from January 1, 2022, the households in multi-family buildings of cooperatives and homeowner associations, but also hospitals, schools, preschools, day cares and cultural institutions are covered by special rates on gas.

You may find below a summary of the changes of rates on selected goods introduced by both Anti-inflation Packages.