CHANGES TO VAT RATES FRAMEWORK

The Finance Ministry are working to develop new compliance tools in relation to VAT rates.

The proposed instruments include:

  • a new matrix of VAT rates to enable taxable persons to select the right rate for their goods or services using only the annex to VAT Act;
  • replacing PKWiU (which is the statistical classification currently used for attribution of reduced VAT rates) with Combined Nomenclature (CN codes) to guide the choice of rates for particular goods;
  • introducing special rate rulings (called Wiążąca Informacja Stawkowa, or WIS), being administrative decisions designed to resolve VAT rate issues (modelled on tariff or excise rulings), as a replacement for statistical opinions.

The new VAT rates matrix may change the current classification of certain goods or services and thus lead to changes in the current distribution of VAT rates.

Please note that these proposals are still at the concept stage and have not left the Finance Ministry; as such they are open to modification. The new law is projected to enter into force on 1 January 2019.

We will keep you up-to-date on the progress of this legislation.

If this issue pertains to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

 

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This Newsletter provides general information and is designed to keep you up-to-date with changes in tax law, tax rulings and interpretations, case law development and interesting commentaries.
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