Monday , March 1 2021

Binding role data, changing classifications, changing PDV matrices

The Ministry of Finance has informed about progress and advanced work related to, among other things, changes in product classification for VAT purposes, harmonization of rates in some products, and introduction of binding bidding information aimed at protecting taxpayers from possible misstatement of the tax rate on goods and services. Generally, the changes will take effect on January 1, 2020, but some will start work in April 2019.

Proposed changes

1. Change of Classification – Combined Nomenclature CN

The draft amendment to the VAT Regulation assumes a change in the way goods and services are identified for VAT purposes and deviations from the application of the Polish Classification of Products and Services (PKWiU 2008) to:

Combined Nomenclature (CN) in the range of goods and the current Polish Classification of Products and Services of PKWiU 2015 in the field of services.

Combined nomenclature CN

Combined Nomenclature CN is a customs classification that identifies all goods on the market. Each product is classified into the appropriate CN group (division, item, subtraction, code) to a tree whose structure is defined by the World Customs Organization and the Customs Code of the European Union.

The grouping of goods in this nomenclature can be checked in the tariff browser on the Treasury website and the Customs electronic service (the link opens a new window somewhere else).

2. New VAT rate matrix

New solutions enable simplification of the VAT rate system to ensure simplicity, transparency and ease of use. This will enable the removal of existing inconsistencies in VAT rates:

  • apply a single tax rate to the maximum possible reduction of all CN departments. This means a significant reduction in the number of items in the new Attachments no. 3 and no. 10 of the Law on VAT containing lists of goods and services taxing at rates of 8% and 5%

  • acceptance – in case of necessity of changing the rate for a particular commodity – the general rule of reduction of the rate (the "equation below"),

  • balancing the introduction of a simple matrix with increasing rates for selected – but not limited – goods and services.

3. Binding Entry Data (WIS)

In order to provide protection to taxpayers and allow the tax rate to be properly allocated to a good or service, a commitment obligation is introduced. WIS will provide taxpayers and tax authorities with greater security for the correctness of the VAT applied.

What is WIS?

This is a decision – as opposed to the GUS classifications that have so far worked. He will be appointed by the appointed tax director for tax purposes for good or service.

What is WIS?

  • a description of the goods or services that are the subject of the decision,

  • classification of this product by CN or service according to PKWiU,

  • suitable for VAT or classified goods in such a way …

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