Prices for fruits and vegetables to drop in Poland
Due to the reduction in VAT rates for the period from February 1, 2022 to July 31, 2022, prices for fruits, vegetables and other food products are expected to decrease in Poland and other EU countries.
This is reported by the association "Ukrsadprom" on its Facebook page.
The report says that on Thursday, January 27, 2022, Polish President Andrzej Duda signed a document on amendments to the law on taxation of goods and services. The innovation temporarily reduces the VAT rate, including on food (from 5 to 0%), fuel (from 23 to 8%), fertilizers, plant protection products (from 8 to 0%), as well as on natural gas (by 0%). %) and energy, electricity and heat - up to a rate of 5%.
Farmers selling agricultural products and paying VAT on a general basis from February 1 to July 31, 2022 will pay 0% VAT on the following types of products sold: vegetables and fruits, edible nuts; grain and seed material, oilseed products; plant products for processing and medicinal plants; dairy products; bird eggs; natural honey; food products of animal origin
Zero VAT should reduce the price of products for consumers, because it will be valid throughout the food supply chain - for farmers who sell what they have grown for processing, for food traders and for end consumers who buy these products.
From February 1, 2022, food sellers will have to change the setting of fiscal cash registers in their stores so that they charge 0% VAT on milk, eggs, fruits and vegetables, and will also be required to inform the customer that VAT has been reduced based on the change legislation.
The Association reminds that zero VAT for all food products, including fruits and vegetables, is planned to be introduced throughout the EU by mid-2022. The purpose of the innovation is to prevent global inflation, which has become one of the economic consequences of the COVID-19 pandemic.
Before that, in December 2021, after four years of negotiations between the finance ministers of all EU member states, an agreement was reached on the text of the EU VAT Directive. The agreed text of the Directive allowed individual member states to introduce zero VAT on food products urgently, without waiting for the changes to automatically take effect throughout the EU. The first change in its VAT system was made by Poland, which is one of the most active initiators of the introduction of innovations with zero VAT on food products in the EU.