Cisowianka maker sues state over VAT on water

7 July 2026 Poland Radar 0 Comments

Nałęczów Zdrój sues the State over VAT on bottled water Poland, seeking over PLN 5m amid claims of unfair tax treatment.

Nałęczów Zdrój, the maker of Cisowianka, filed a lawsuit against the State Treasury seeking more than PLN 5 million. The company argues that VAT on bottled water Poland unfairly disadvantaged natural water producers compared with some sweetened drinks.

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VAT on bottled water Poland: the legal claim

The firm lodged the claim at the District Court in Warsaw. Moreover, the State will be represented by the Prokuratoria Generalna. Consequently, this dispute moves quickly into formal litigation. In addition, Nałęczów Zdrój filed a complaint with the European Commission. Therefore, Brussels already asked Poland for explanations about tax rules on bottled drinks.

What the producer says and the math behind PLN 5 million

Nałęczów Zdrój says the tax rules kept bottled mineral and spring water at the standard 23 percent VAT. However, some drinks with juice content or flavouring benefited from a reduced 5 percent rate. Consequently, the company claims that the rules created a perverse market incentive. Moreover, it argues those rules harmed competition and its sales. The firm calculated losses over several years and set damages above PLN 5 million.

Why this matters beyond the company

This case affects consumers and policy. Furthermore, it challenges how Poland balances health policy and tax policy. For example, the state says it supports healthy choices. However, the past VAT structure taxed plain water more heavily than some processed drinks. Therefore, prices and market shares could reflect tax quirks rather than consumer preference or health guidance. In addition, the European Commission will check whether the differing VAT rates breach EU rules on tax neutrality and fair competition. Consequently, the case may reach the Court of Justice of the European Union if Brussels finds problems.

Recent changes and remaining questions

Poland changed some VAT rules from 1 July and narrowed the reduced rate benefits for some beverages. However, Nałęczów Zdrój seeks compensation for past years. Moreover, the company says it warned authorities before suing. Therefore, courts will examine whether the state acted unlawfully or whether the rules were a legitimate policy choice. In addition, the outcome may shape future tax policy on everyday goods like bottled water and juices.

💡 GOOD TO KNOW: If you live in Poland, watch how VAT affects everyday prices. For example, a bottle of water may carry different VAT than a soft drink, so price tags vary. Moreover, administrative terms matter here. ZUS means the social insurance office (contributions office), NFZ is the public health insurer (National Health Fund), PESEL is your national ID number, and a mandat is a fine. Therefore, keep receipts and check VAT on invoices if you run a business. In addition, contact the local tax office (urząd skarbowy) for formal questions.

Consequently, expats should follow this case because it may change retail prices. Furthermore, it shows how tax choices shape daily life in Poland. In addition, it demonstrates that companies may use both domestic courts and EU channels. Therefore, the legal fight can affect market rules for many products.

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