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Poland: New VAT Matrix

It has been announced new VAT rates will come into force from April 2020.

Starting from 1 April 2020, a new VAT matrix will be introduced in Poland and this is based on the VAT Law of 9 August 2019 amending the VAT Law of 11 March 2004.

There will be new lists of goods that will be subject to reduced VAT rates (taxed at 8% and 5%). This new list will no longer be based on the Polish Classification of Goods and Services (PKWiU) but will be based on:

  • Combined Nomenclature (CN) – for goods; and
  • Current PKWiU from 2015 – for services

New VAT Matrix

This new matrix is to be introduced with an attempt, if possible, to apply one rate for all CN group group of codes.

The rates for some goods and services have been decreased and others increased.

Some of the decreases are as follows:

  • The rate for tropical and citrus fruits, some edible nuts, citrus peels or melons will be reduced from 8% to 5%;
  • The rate of soups, broths, diabetic food and homogenised foods will be reduced from 8% to 5%;
  • The rate for pacifiers, food for infants and toddlers, nappies and car seats will be reduced from 8% to 5%;
  • The rate for bread of all kinds and cookies will be subject to a rate of 5% (previously this rate could have been 5%, 8% or 23% depending on the detail).

Some of the increases are as follows:

  • The rate for sea foods such as octopus, lobster, other crustaceans and preparations made of them will be subject to a rate of 23% instead of the current varied reduced rate;
  • The rate for ice used for food and other refrigeration purposes will be increased from 8% to 23%;
  • The rate for some unprocessed spices (cumin and turmeric) will be increased from 5% to 8%

Binding Rate Information (WIS)

The binding rate information (WIS), will be introduced. The WIS will be an administrative decision issued by the tax authorities for the purpose on VAT supplied, intra-Community acquisitions of goods and services and imports. Taxable persons (and other entities envisaging taxable transactions) will be eligible to apply for binding rate information (wiążąca informacja stawkowa).

The decision will be issued upon a taxpayers request and will contain a description of the goods and services which it related to, the classification of goods according to the CN or the services according to PKWiU and the VAT rate applicable to the goods and services.

WIS will be issued within three months after a payment of a fee that amounts to EUR 40 and taxpayers can apply for binding rate information from 1 November 2019.

Aim of the WIS

The aim of the WIS is to provide protection for taxpayers and this binding rate information will protect taxpayers in a similar manner that tax rulings currently do.

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