VAT exemptions – new EU rules also applying to Poland

From 2025, EU countries, including Poland, will be able to freely exempt from VAT the supply of food, water, medicines, medical equipment, books and magazines for the libraries, passenger transport as well as the supply and installation of solar panels.

Alternatively – if they so decide – they will be able to apply a preferential VAT rate lower than 5% to these supplies.

This is the result of the draft amendment to the VAT directive, on which a political compromise was reached in the EU Economic and Financial Affairs Council (ECOFIN). The draft has yet to receive an opinion from the European Parliament and only then will it be finally approved by ECOFIN.