6 May 2020

Binding Rate Information (WIS) – changes from July 1st, 2020

Binding Rate Information (abbrev. WIS) is a decision issued by the Director of National Tax Information indicating VAT rates for goods or services specified by the taxpayer. Taxpayers can now search for published Binding Rate Information in a database, which was made public by the Ministry of Finance.

WIS issued at the taxpayer’s request replaced individual tax interpretations. The main difference between the previous and current format is the inclusion of the classification of goods and services and the new VAT rates matrix. Each Binding Rate Information contains:

• 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 rates.

Binding Rate Information – protection for taxpayers

A unique feature of the WIS is the protection it provides to taxpayers regarding the matching of VAT rates to products/services. In the event of an inspection or incorrect rate application, the taxpayer may refer to the specific WIS, from which certain combinations of rates result. Although applications for the WIS can be submitted from November 1st last year, it should be remembered that said protection will only apply to activities carried out after March 31st, 2020. This is related to the transitional period and the change in the provisions on the identification of goods and services (introduction of the Combined Nomenclature SC, PKOB and PKWiU 2015).

Until February 2020, taxpayers had no insight into other published Binding Rate Information decisions, so the only way to obtain protection – guaranteeing safety in case of incorrect VAT rate application – was to apply for an individual WIS.

Changes from July 1st, 2020

Important information for all entrepreneurs planning to use the WIS or refer to decisions previously issued for another taxpayer. Starting from July 1st, 2020, the provisions regarding dates and periods of validity of WIS will change.

• The tax authorities will be bound by the issued WIS from 1st July – this also applies to WIS already issued under current regulations.
• Taxpayers who would like to refer to the WIS published in BIP (issued for another taxpayer) can effectively do so only from July 1st, 2020.

Public WIS database

At the end of February 2020, the Ministry of Finance launched a public database of Binding Rate Information issued. With the help of the provided search engine, it is now possible to search for specific WIS by their identification numbers. This allows taxpayers to use WIS that have been issued for other entities. It will significantly reduce the number of applications received by the Ministry and will speed up the process of issuing subsequent decisions.

Thanks to the database, entrepreneurs have the opportunity to skip the process of applying for WIS with a specification concerning only their situation – instead, they can use existing, published WIS that can be searched using the specifics of their services/products.

The search engine for issued WIS can be found on the site provided by the Ministry of Finance: www.kis.gov.pl.