New VAT rates on food, fuel, electricity and natural gas since 2023 in Poland

Nowe stawki VAT

As part of provisions of the Act of 7 October 2022 on amendment of the act on corporate income tax and certain other acts, the so-called Anti-Inflation Shield has been extended until the end of 2022. It means that the current VAT rates will be maintained at the preferential level until the end of December. What will the new VAT rates be in 2023 in Poland?

Reduced VAT rates

Thanks to the anti-inflation mechanisms implemented by the Government, the new VAT rates were lowered to:

  • 0% from 5% on basic foodstuffs;
  • 0% from 8% on fertilizers, plant protection products and other products supporting agricultural production;
  • 0% from 23% (8% since 01.02.2022) on natural gas;
  • 5% from 23% (8% since 01.02.2022) on electricity and thermal energy;
  • 8% from 23% on engine fuels.

New VAT rates since January 2023 – legislative work

According to the assurances of Polish Prime Minister Mateusz Morawiecki, he will by all means try to counteract the skyrocketing inflation by supporting households, small and medium companies, schools, as well as hospitals through maintaining a similar level of prices. As he says: “So long as it is possible and there is no abrupt objection of the European Commission, we will keep the zero VAT rates on food (…) We do not withdraw the anti-inflation shield. It will just take a new form – due to the lack of approval of the European Commission”. (Polish Press Agency)

On the basis of carried out legislative works, Minister of Finance Magdalena Rzeczkowska signed an ordinance, rectified on 2 December, on reduced rates of VAT in 2023. This shall serve as the grounds to keep the zero VAT rate for basic foodstuffs and an 8% rate on certain products connected with agricultural production.

Details on new VAT rates:

  • Pursuant to §8,  will apply to food products listed in items 1−18 of Appendix no. 10 to the said act, other than those classified under code 56 of the Polish Classification of Products and Services (food-related services), such as meat and edible offal, fish, meat and fish products, vegetables, fruit and edible nuts, vegetable and fruit products, cereals, cereal products, seeds and oil fruits, fats composed of plant or animal products (mixes), soups and broths and preparations therefor.
  • On the other hand, §12 will guarantee, by 31.12.2024, a tax rate of 8% for fertilizers listed in the said document (among others: certain soil conditioners, substrates, mixed fertilizer products consisting solely of fertilizer and liming material, which have been referred to in Regulation of the European Parliament and the Council 2019/1009, microbiological fertilizer products that have been referred to in Art. 2 section 1 point 10a of the act on fertilizers and fertilizing, entered in to the list of microbiological fertilizer products).

Budgetary needs vs. changes in VAT rates on fuel, natural gas and electricity

Starting from 1 January 2023, we will be unable to apply the current preferential rates of the value added tax with regard to electricity, gas and fuel; it means that new VAT rates for those products will be used from January.

The Vice-Prime Minister and Minister of State Assets, Jacek Sasin, announced that the said rates will be increased. However, no information has been presented so far on the rate that will apply from the next year.

Nevertheless, whether the 23% tax will be brought back is a debatable. The Government claims that such an increase results from the pressure put by the European Union i.e., the lack of approval for keeping the current, lower rates and, moreover, possible penalties imposed if the current preference is maintained. From the perspective of Art. 98 of the European Directive on VAT, providing for the minimum threshold of 5%, which must be maintained for energy carriers, it leaves for the Member States a certain range for independent determination.

The lack of a clear decision of the Polish government on a specific rate for the listed products may result from the continued analyses concerning clarification of the budget as well as from the consultations held with EU representatives. However, the increase of the VAT rate for the a/m products in the next year is unavoidable since representatives of Polish authorities, judging from their speeches, are clearly inclined towards the presented stand.

Author: Joanna Kopera, Accountant, Accounting Firm MDDP Outsourcing.


Ordinance of the Minister of Finance of 2 December 2022 on reduced rates of value added tax in 2023.

Act of 7 October 2022 on amendment of the act on corporate income tax and certain other acts.

Appendix no. 10. List of goods and services subject to tax rate of 5%, in: Act of 11.03.2004 on value added tax.

Directive 2006/112/EC of the Council of 28 November 2006 on the common system of value added tax.

Regulation of the European Parliament and the Council (EU) 2019/1009 of 5 June 2019 laying down rules on the making available on the market of EU fertilizing products and amending Regulations (EC) no. 1069/2009 and (EC) no. 1107/2009 and repealing Regulation (EC) no. 2003/2003.