Binding Rate Information (WIS) – protecting the taxpayer when applying the appropriate VAT rates

The new VAT rate matrix, which is a catalogue of goods and services that can benefit from a preferential VAT rate, has been in force for more than two years now. However, it happens that determining the correct VAT rate for a good or service is not easy. The legislator decided to make it easier for taxpayers to apply the VAT rate rules and provide them with adequate protection.

What is WIS?

Binding Rate Information, abbreviated to WIS, is an administrative decision issued by the Director of the National Fiscal Information (KIS), which – on the basis of an application submitted by a taxpayer, containing an exhaustive description of what a given good or service consists of – determines the correct VAT rate for it.

Advantages of WIS

The WIS is binding for all tax authorities towards the entity that submitted the application and received the decision determining the tax rate. Being in possession of the WIS, the taxpayer cannot be penalised for applying the rate which results from the decision received.

For taxpayers, an additional advantage of the WIS is that it can be invoked in the event of a previous such decision for another taxpayer in a similar factual situation.

Elements of the WIS

The decision issued shall contain the following information:

– A description of the goods or services as described in the application for a decision;

– Classification of the goods according to selected classifications such as the Combined Nomenclature (CN), the Polish Classification of Building Objects (PKOB) or the Polish Classification of Goods and Services (PKWiU);

– The VAT rate applicable to the good or service.

What data is required to submit an application for a WIS?

The application is submitted on the government form WIS-W, which must contain data such as:

– Identification data of the taxpayer and data of the proxy, if appointed;

–  A description of the good or service for proper attribution;

– Indication of the classification under which the goods or service should be classified;

– Confirmation of the submission of a fee of PLN 40 for the issuance of the decision and a fee of PLN 17 as stamp duty on the power of attorney (if a proxy has been appointed in the case).

How to submit an application for a WIS?

The application can be submitted:

– In electronic form via the portal;

– By traditional mail to the address of the National Fiscal Information Office in Bielsko-Biała;

– In person at the registry office of this office.

Deadlines

As a rule, the waiting time for a WIS decision is 3 months from the date of receipt of an application by National Fiscal Information.

This period may be extended if the application is incomplete or if detailed examinations are necessary to issue a decision.

WIS – why is it worth it?

The Binding Rate Information (WIS) is undoubtedly a decision that gives taxpayers tax protection and the certainty of applying the correct VAT rate to the goods or services sold.

If you are interested in applying for a WIS, we encourage you to contact our VAT department, who will assist you in obtaining the decision.

Author:
Aleksandra Philips, LL.B., VAT Specialist