Recently, gate-defined Josephson junctions in magic angle twisted bilayer graphene (MATBG) were studied experimentally and highly unconventional Fraunhofer patterns were observed. In this work, we show that an interaction-driven valley-polarized state connecting two superconducting regions of MATBG would give rise to a long-sought-after purely electric controlled $\varphi_0$-junction in which the two superconductors acquire a finite phase difference $\varphi_0$ in the ground state. We point out that the emergence of the $\varphi_0$-junction stems from the valley-polarized state which breaks time-reversal symmetry and trigonal warping effects which break the intravalley inversion symmetry. Importantly, a spatially non-uniform valley polarization order parameter at the junction can explain the highly unconventional Fraunhofer patterns observed in the experiment. Our work explores the novel transport properties of the valley-polarized state and suggests that gate-defined MATBG Josephson junctions could realize the first purely electric controlled $\varphi_0$-junctions with applications in superconducting devices.
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