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.
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.
An application for Binding Rate Information shall include:
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.
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.
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.
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:
In the aforementioned situations, listed in pt. 1-6, it is necessary to apply for an Individual Interpretation.