Ladies and Gentlemen,
On July 1, 2020, a revolutionary change will come into force regarding the determination of tax rates on goods and services (the initial date of entry into force of the regulations was postponed due to the introduction of the so-called anti-crisis shield).
Under the new regulations, goods subject to a reduced VAT rate (primarily 5% and 8%) will be determined based on the CN code classification – Combined Nomenclature, rather than the Polish Classification of Goods and Services (PKWiU). For services, the PKWiU remains the basis for classification. Therefore, every company should analyze its VAT rates in light of the upcoming change.
At the same time, it is possible to apply now for the issuance of so-called "binding rate information," or WIS. WIS provides legal protection for businesses in terms of classifying specific goods and services into the appropriate static VAT code and rate. WIS is issued in the form of an administrative decision, which is binding on the tax authority vis-à-vis the taxpayer who requested it.
While the introduction of the new VAT rate matrix was intended to ensure transparency and simplify the application of the regulations, in practice, the classification of many product groups can be problematic. Incorrect classification can result in an incorrect VAT rate and lead to significant tax arrears for the taxpayer.
We are ready to assist you in clarifying any doubts related to the preparation of a new VAT matrix, as well as in its preparation or verification of the matrix created by the Client.
Moreover, in case of significant doubts as to the classification of given groups of goods and services, we are ready to apply for the issuance of WIS on behalf of the Client.
If you have any questions, please contact us.
This material was prepared on the basis of the Act of 9 April 2020 on special support instruments in connection with the spread of the SARS-CoV-2 virus (version sent to the Senate of the Republic of Poland, print no. 101).
