The anti-inflation shield is valid until the end of the year

What does the anti-inflation shield cover?

The anti-inflation shield primarily includes:

VAT reductions:

• 0% VAT on food previously taxed at 5%,
• 0% VAT on fertilisers, plant protection products, and other agricultural production aids instead of 8%,
• 0% VAT on natural gas instead of 23%,
• 5% VAT on electricity and heat instead of 23%,
• 8% VAT on motor fuels instead of 23%,

Excise duty reductions:

• reduction to the minimum excise duty on motor fuels, light heating oil, and electricity,
• exemption from excise duty on electricity sales to households,
• exemption of motor fuel sales from the retail sales tax,
• shield allowance for households.

The Ministry of Finance reminds on the government website that the VAT reduction applies to motor fuels, i.e., diesel oil, biocomponents constituting standalone fuels, petrol, and liquefied petroleum gas (LPG) used to power motor vehicles, which are covered by excise duty preferences under the government anti-inflation shield.

The support under Shield 2.0 also covers electricity sales, including at fuel stations for charging electric vehicles. According to the EU VAT Committee guidelines of 1 December 2021, such transactions are treated as supplies of goods, and thus as supplies of electricity subject to the reduced VAT rate.

The rate change also applies to food sales, where a zero VAT rate has been introduced for basic food products currently subject to a 5% rate, including:

• meat and fish and their products;
• dairy products;
• vegetables and fruit and their products;
• grains, milling industry products, grain products, and bakery goods;
• certain drinks (e.g., those containing at least 20% fruit or vegetable juice, dairy drinks, and so-called plant-based milks).

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Entrepreneurs’ information obligations related to the anti-inflation shield

With the entry into force of Shield 2.0, entrepreneurs must also display clear information in shops or at fuel stations (by the cash register) that VAT rates have been reduced for these goods. For sellers of natural gas, electricity, and heat, this information must be attached to invoices or other documents evidencing payment for these goods.

The Ministry of Finance has prepared a template for the information sellers must display at cash registers when selling goods for which Shield 2.0 reduces VAT rates. The templates are available on the government website: Anti-inflation shield – information template and scope – Ministry of Finance – Gov.pl portal