Binding rate information (WIS) available from November

Starting from November 1st, taxpayers can apply for access to a new tool – binding rate information (WIS), aiding with adjustment of VAT rates and, at the same time, protecting the taxpayer against the incorrect application of the tax rate matrix. However, it should be remembered that the regulations enacting the WIS do not enter into force until April 1st, 2020.

A definition of Binding Rate Information

Binding Rate Information is a decision issued by the director of the National Revenue Information that indicates VAT taxation for the supply/import of products or services. At the same time, it protects taxpayers who want to apply the relevant provisions of the Tax Code, because it directly binds the tax authority to the taxpayer for whom WIS was issued. In other words, the tax offices will not be able to question the amount of VAT applied in the content of the WIS. This protection will only apply to activities carried out after March 31st, 2020.

Each WIS should contain:

• a list of products or services (by the content of the application);
• appropriate classification of products and services (necessary to determine the tax rate and indicate provisions that will apply);
• matched VAT rate.

The WIS is to replace the individual tax interpretations that are currently in use. In the previous model, the National Revenue Information was not obliged to apply the appropriate classification of products and services. A significant change will occur with the introduction of the WIS, thanks to which the taxpayer will obtain a binding decision, which includes the appropriate classification and a new matrix of VAT rates.

A new matrix of VAT rates

With the release of the WIS decision, taxpayers can start to settle the tax based on the new VAT rate matrix. The current matrix – PKWiU 2008 – even based on the opinion of the Ministry of Finance is needlessly extensive and complicated. Binding rate information, issued during the transitional period from November 1st to March 31st, 2020, will contain a new matrix of VAT rates, adding the proper scope of the application according to:

• Combined Nomenclature (CN) for products,
• Polish Classification of Construction Objects (PKOB),
• Polish Classification of Products and Services (PKWIU 2015) in the field of services.

Binding rate information – submitting the application

The application for WIS will be available for download and submission from November 1st, 2019, using the e-PUAP platform. However, one should remember that the received WIS will refer to the legal status, which will come into force after April 1st, 2019.