0% VAT rate - new regulation due to the pandemic


On March 12, 2020, a draft regulation of the Minister of Finance was published, amending the regulation on goods and services for which the VAT rate is lowered, and the conditions for applying the reduced rates. This project aims to support activities in the field of counteracting the growing threat of the epidemic and the spread of the disease caused by the coronavirus. Therefore, it is planned to lower the VAT rate for the supply of certain medical supplies. Check what conditions must be met for the 0% VAT rate to be correct!

What goods will be subject to the 0% VAT rate?

Pursuant to § 1 of the Regulation, the reduction of the VAT rate to 0% applies to deliveries:

  1. medical devices within the meaning of the Act of May 20, 2010 on medical devices,

  2. laboratory glass and laboratory equipment, medicinal products and active substances within the meaning of the Pharmaceutical Law,

  3. biocidal products such as:

    1. disinfectants,
    2. specialized diagnostic tests for the analysis and detection of pathogens in water, air and soil,
  4. personal protective equipment, such as:

    1. masks,

    2. coveralls,

    3. shoe protectors,

    4. caps,

    5. gloves.

The 0% VAT rate for the above-mentioned goods after the entry into force of the aforementioned regulation will be applicable from February 1, 2020 (and therefore it also applies to deliveries taking place before the regulation enters into force) until August 31, 2020.

Conditions for applying the reduced VAT rate

The reduction of the VAT rate does not apply to paid deliveries made between companies, i.e. in the so-called B2B or in the case of sales to private persons, the so-called B2C. The 0% VAT rate can only be applied to a donation for the purposes of prevention, combating infection, preventing the spread and combating the effects of an infectious disease caused by coronavirus (SARS CoV-2). Additionally, the donation must be made to:

  1. Material Reserves Agency - for the implementation of statutory tasks;

  2. Central Database of Sanitary and Anti-Epidemic Reserves - for the implementation of statutory tasks.

The right to apply a reduced 0% VAT rate applies only to the conclusion of a written donation agreement between the donor and the recipient, which stipulates that the donated funds will be used to fight the coronavirus.