NEW VAT RATING RULES

The Finance Ministry has drafted a new law to fundamentally change the VAT classification of goods and services. The proposed legislation, which seeks to amend the VAT Act, introduces new VAT rate matrices where:

  • goods would be classified in accordance with CN codes, and
  • services would be classified in accordance with the current Polish Classification of Goods and Services PKWiU (v. 2015).

If those changes become law, certain goods will have different VAT rates (higher or lower) than they have now. The new legislation is expected to become effective on 1 January 2020.

The drafters propose a new regulatory instrument called WIS (from Polish wiążąca interpretacja stawkowa), being essentially a binding VAT rating. A WIS would protect taxable persons by offering them assurance as to whether their VAT rates are correct, by analogy to the current mechanism of tax rulings. A WIS will take the form of an administrative decision issued on application.

According to the draft, WIS applications will be accepted starting on 1 April 2019 but no WIS will take effect earlier than on 1 January 2020.

The draft is now currently processed within the government. We will keep you up-to-date on the progress of this legislation.

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

Doradztwo Podatkowe WTS&SAJA Sp. z o.o.

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

Warsaw Office

Central Tower, 22nd floor

Al. Jerozolimskie 81

02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.

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