Poland – Proposed Increase in VAT Rate for Certain Non-Alcoholic and Energy Drinks

Polish government proposed a bill to increase the VAT rate on certain non-alcoholic and energy drinks. The new legislation would eliminate the current reduced VAT rates for these products, with the change expected to be approved by the Council of Ministers late 2025 and likely effective from 1st January 2026.

Details of the Proposed VAT Increase
Currently, Poland applies a reduced VAT rate of 5% (or 8% in catering) to non-alcoholic beverages that have at least 20% fruit, vegetable, or mixed juice content. The proposed draft law aims to raise the VAT rate on these specific products, meaning they would no longer qualify for the preferential rates.

The proposed increase would specifically affect:

– Non-alcoholic equivalents of alcoholic beverages (e.g., non-alcoholic beer and wine) with up to 0.5% alcohol content.

– Energy drinks containing added caffeine or taurine.

The bill is currently under discussion and is part of a broader health and social policy to discourage the consumption of certain less-healthy beverages.