Poland: Proposed increased VAT rate on non-alcoholic and energy drinks, reduced tax on extraction of certain minerals

The KPMG member firm in Poland prepared a report on recent tax developments including the following: 

• Preliminary remarks on the bill increasing the preferential value added tax (VAT) rate on non-alcoholic beverages, in which the mass proportion of fruit, vegetable, or fruit/vegetable juice constitutes not less than 20% of ingredients, was published. The increase would apply to non-alcoholic (up to 0.5% alcohol) equivalents of alcoholic beverages (e.g. non-alcoholic beer) and energy drinks (with added caffeine or taurine). The bill is expected to be passed by the Council of Ministers in Q4 2025.
• The Council of Ministers at the end of October adopted a bill providing for a reduction in the tax on the extraction of certain minerals, specifically silver and copper, starting in 2026. The changes include modification, for the years 2026–2028, of the formulas used to calculate tax rates for copper and silver. Additionally, starting in 2029, taxpayers would be able to deduct from the tax a portion of the expenditure incurred in connection with copper and silver extraction in Poland, including expenditure incurred from the date of entry into force of the Act. In subsequent years, the amount of the allowable tax deduction would depend on the level of expenditure incurred by taxpayers on projects related to copper and silver mining in Poland.