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Poland to go before the EU Court of Justice over Reduced VAT Rate for Medical and Fire Protection Goods

The European Commission has decided to refer Poland to the EU Court of Justice for applying a reduced VAT rate to general medical equipment, pharmaceutical products and fire protection goods.

Under the EU VAT Directive, Member States are allowed to apply a reduced VAT rate for medical equipment and other appliances if they meet two conditions. They must be intended to alleviate or treat disability and be for the exclusive personal use of the disabled.

According to the Commission, Poland goes beyond this scope by granting a reduced VAT rate to medical equipment of general use such as equipment used in hospitals, and to certain non-medicinal pharmaceutical products such as disinfectants and spa products.

The Commission has also referred Poland to the EU Court for the application of a reduced VAT rate to fire protection goods also in contravention to the EU VAT Directive.