The reduction of the value-added tax (VAT) rate on certain food products will mean that the price reduction on store shelves will amount to approximately 7.4%, reported the Consumer Rights Protection Center.
As explained by the Consumer Rights Protection Center, the difference arises because products in stores are sold at a price that already includes VAT, and the new price will be formed by calculating VAT from the product price without this tax, rather than subtracting it from the current final price.
To make it easier for consumers to understand how the reduction in the VAT rate should affect prices, the center developed a price comparison calculator where one can select a product and enter the current price with a VAT rate of 21%, and the calculator will calculate how the price will change with a VAT rate of 12%.
For example, if a liter of milk previously cost 1.5 euros, then with the application of the 12% VAT rate, its price will be 1.39 euros. This means a saving of 0.11 euros per liter of milk.
The Consumer Rights Protection Center urges shoppers to pay attention to price tags and receipts in stores. When making purchases, it is important to ensure that the receipt for the relevant food products indicates the reduced tax rate.
The Consumer Rights Protection Center has created a special section on its website titled "Reduced 12% VAT Rate on Essential Food Products," which explains which groups of products it applies to, how the VAT reduction may affect the final price, what consumers should pay attention to in the store, lists exceptions, and provides information on where to turn in case of questions or complaints.
As reported, starting from July 1, the VAT rate on certain food products will be reduced from 21% to 12%. The reduced rate will apply to four main groups of food products - bread, milk, poultry meat, and eggs - until June 30, 2027.
The Consumer Rights Protection Center reminds that the 12% tax rate is already applied to several groups of food products, including specialized baby food, fresh fruits, berries, and vegetables.
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