Changes have been introduced as regards the term for applying zero VAT rate for the supply of food products services (bread and flour) with 1) place of performance on the territory of the country, 2) when importing goods on the territory of the country, and also for the so-called 3) taxable intra-community acquisitions of goods. The deadline has been extended to 31.12.2024, similarly to the VAT regime in relation to restaurant and catering services. The latter (restaurant and catering services) have also enjoyed preferential VAT treatment since 2020, and at the beginning of this year the deadline for applying the reduced VAT rate of 9 % for them was also extended until the end of 2024. 

The application of a reduced or zero VAT rate was originally introduced by amendments to the Value Added Tax Act in 2020 to support the restaurant, food and other sectors affected by the anti-epidemic measures against COVID-19. The periods of preferential tax treatment for this type of supply have already been extended several times in 2021 and 2022.

During the pandemic, preferential tax treatment was also provided to traders in other areas of the economy. However, the amendments adopted now do not provide for an extension of the preferential VAT treatment for services in the field of sport (use of sports facilities such as playing fields and gyms), tourist services, including excursions organised by tour operators and travel agencies with occasional coach transport of passengers. All these services were previously subject to VAT at 9%, but as of 30.06.2024 the general VAT rate of 20% has been reinstated and will apply again.

In turn, other services traditionally associated with the tourism industry are treated differently and have a permanent arrangement to apply a reduced tax rate of 9 %: accommodation services provided in hotels and similar establishments, including the provision of holiday accommodation and the letting of pitches for camping or caravanning, with a place of supply within the country.

Other services for which the permanently agreed reduced rate remains in force include: the supply of books or periodicals in physical or electronic form, and the supply of food suitable for babies or young children, baby nappies and similar baby hygiene products.