Binding Rate Information

Minimize tax risk by applying for the issuance of Binding Rate Information

Binding Rate Information

Binding Rate Information (PL: WIS) is a decision issued by the Director of National Tax Information at the request of an business owner. An entrepreneur who has received a decision within the Binding Rate Information is protected during a tax inspection in that the tax authority cannot impose sanctions for using the rate indicated in the WIS.

Binding Rate Information obligates tax authorities towards entities for which it was issued with respect to goods, services, or comprehensive supplies made after the date on which the decision was delivered.

The request may only relate to the provision of value added tax rates of 0%, 5%, 8% or 23%, excluding the taxation of intra-Community supply and export of goods. Binding Rate Information may also be issued regarding the classification of a good or service for the purpose of applying the goods and services tax regulations containing such classification.

When do you need it?

Filing a Binding Rate Information request can be significant when a business offers unusual goods or provides unusual services and is unsure what VAT rate to apply. WIS may be the safest way to reduce tax risks in such situations.

Our support

Analysis and legal evaluation of the tax risk of applying the wrong rate.
Preparation of the application based on a description of goods/services received from the company.
Submission of the application along with necessary attachments.

Contact

Gerard Goliasz

Senior TAX Specialist

g.goliasz@krgroup.pl

(+48) 22 511 56 21

FAQ

What should an application include?

An application for Binding Rate Information shall include:

applicant data
data of an attorney (if one is appointed)
description of the subject of the application, including:
- a detailed description of the goods or services, allowing to identify them in such a way as to qualify them in accordance with the Combined Nomenclature (CN) or the Polish Classification of Types of Construction (PKOB) or the Polish Classification of Goods and Services (PKWiU)
- statement - "Aware of the criminal liability for making a false statement, I declare that on the date of submitting this application, in terms of the subject matter of this application, there are no pending tax proceedings, tax inspections or customs and fiscal inspections, and that to this extent, the case has not been resolved on its merits in a decision or order of the tax authority."(this statement is not applicable to the contracting authority within the meaning of the Public Procurement Law).

What is the deadline for issuing a WIS?

The decision is issued without undue delay, but no later than 3 months from the date of receipt of the application, however, the deadline may be extended by the relevant authority.

What is the period of validity of the WIS?

The decision is valid for 5 years from the date of issuance, unless prior to that date the WIS expires by operation of law in the event of a change in the tax laws subject to WIS.

Can the decision received be appealed?

The decision can be appealed within 14 days from the date of its delivery to the Director of the NISS. If a final decision has been issued in this case, such as the refusal to issue a WIS, the entrepreneur has 7 days.

If, after the appeal, the entrepreneur still disagrees with the decision received, they have the option of filing a complaint with the Provincial Administrative Court, which must be filed through the Director of the NIS within 30 days from the date of delivery of this act.

When can a WIS application not be filed?

A WIS application may not be filed if, on the date of its filing, the competent authority is conducting activities, e.g., a tax audit that relates to the subject scope of this application, or if, in this regard, the matter has been resolved on its merits in a decision or order of the tax authority, or in an investment agreement concluded with the authority.

A WIS application will also not be issued if, for example, it concerns the determination of:

whether the activity is subject to VAT
whether the activity is exempt from VAT
what is the tax base of an activity that is either exempt from VAT or taxed at 0%, 5%, 8% or 23%;
whether the company is dealing with a comprehensive service, and if so, whether it is subject to VAT exemption
whether the Split Payment Mechanism is applicable in this case, where the goods/service have been classified in the issued WIS
whether the goods sold by the company should be marked with some GTU code, in a situation where the goods have been classified in the issued WIS as per CN.

In the aforementioned situations, listed in pt. 1-6, it is necessary to apply for an Individual Interpretation.