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Polish producer challenges VAT on bottled water, citing unfair tax rates
🇵🇱 Poland /Economy & Trade

Polish producer challenges VAT on bottled water, citing unfair tax rates

From Rzeczpospolita · () Polish

Translated from Polish, summarized and contextualized by DistantNews.

At a glance

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  • A Polish bottled water producer is suing the state for 5 million PLN and has filed a complaint with the European Commission over VAT discrepancies.
  • The producer argues that bottled water should have the same lower VAT rate as flavored and sweetened drinks, not the standard 23%.
  • The case could lead to legal disputes in Polish courts and with the European Commission, challenging the current VAT structure for beverages.

A Polish bottled water producer is challenging the country's Value Added Tax (VAT) system, arguing that bottled water is unfairly taxed at a higher rate than many sweetened and flavored beverages. The company is seeking 5 million PLN in damages and has lodged a complaint with the European Commission.

The principle of a unified market should be that all products should have a uniform VAT rate.

— Piotr SchrammLawyer Piotr Schramm, representing the producer, explains the core argument for equalizing VAT rates.

According to lawyer Piotr Schramm, representing the producer, the principle of a unified market should mean uniform VAT rates across similar products. He contends that Poland's current system, which applies a lower VAT rate to flavored drinks, including those with added sugar, and energy drinks, while taxing plain bottled water at 23%, is not only discriminatory but also "anti-health."

Therefore, we want to equalize VAT rates on bottled water and flavored drinks.

— Piotr SchrammSchramm elaborates on the producer's objective regarding beverage taxation.

The lawsuit is considered a "pilot case," intended to pave the way for similar challenges. Schramm highlighted that many other European Union countries have significantly lower VAT rates on bottled water compared to Poland's standard rate. This disparity, he argues, incentivizes the consumption of less healthy options over plain water.

Our lawsuit concerns 5 million PLN, but it is a pilot lawsuit, we want to break some ground.

— Piotr SchrammSchramm describes the nature and ambition of the legal challenge.
DistantNews Editorial

Originally published by Rzeczpospolita in Polish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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