In a similar situation to the ECJ case taken against Spain on the use of the reduced VAT rate on health-care goods (see above), the European Commission has formally requested Poland to amends its legislation on the application of the reduced VAT rate on medical equipment and pharmaceutical products which in the Commission's view, goes beyond the scope of what is allowed under EU law.

In its press release, the Commission states that Member States, under the EU VAT Directive, can apply a reduced VAT rate for medical equipment, aids and other appliances which meet two conditions, namely if they are “normally intended to alleviate or treat disability” and if they are “for the exclusive personal use of the disabled”. For pharmaceutical products, the VAT Directive allows a reduced rate for those related to health care, prevention of illnesses and medical and veterinary treatments.

The Commission's request on Poland's use of the reduced rate takes the form of a reasoned opinion (second step of the EU infringement proceedings). In the absence of a satisfactory response within two months, the Commission may refer Poland to the ECJ.