VAT changes – new matrix, white taxpayer list and binding rate information

Tax changes include the introduction of the so-called white list of taxable persons, i.e. the list of entities registered as VAT payers, not registered and deleted and returned to the VAT register. List functions from 1 September.b.r., and therefore from that date the requirement to verify counterparties applies.

In addition to the introduction of the white list of VAT changes, the activation of the 1 April 2020 a new rate matrix, as well as a WIS – binding rate information to facilitate tax checks for taxpayers.

In order to avoid sanctions, the taxable person making the transfer to an account other than the one disclosed has a whitelist of taxable persons must submit a notice of payment of the claim to that account to the head of the tax office responsible for the invoice issuer within the time limit three days from the date of the transfer order

White list of taxpayers

The White List of taxable persons shall contain a list of taxable persons:

1) in respect of which the head of the tax office has not registered or deleted from the register as VAT taxable persons;
2) registered as VAT payers, including entities whose registration as VAT taxable persons has been reinstated.

The list will contain the following information:

1) the company (name) or name;
2) the number by which the entity was identified for tax purposes, if such number was granted;

3) entity status:

(a) for which no registration has been made or which has been deleted from the register as a VAT taxable person,
(b) registered as an ‘active VAT taxable person’ or ‘exempt VAT taxable person’, including an entity whose registration has been reinstated;
4) REGON identification number, if given;
5) the PESEL number, if any;
6) the number in the National Court Register, if any;
7) the address of the seat - in the case of an entity which is not a natural person;
8) the address of the permanent place of business or the address of the place of residence in the absence of a permanent place of business in respect of the natural person;
9) the names of the persons belonging to the body authorised to represent the entity and their tax identification numbers or PESEL numbers;
10) the names of the prosecutors and their tax identification numbers or PESEL numbers;
11) the name or business name of the partner and his tax identification number or PESEL number;
12) the date of registration, refusal of registration or deletion from the register and return to registration as a VAT taxable person;
13) the legal basis for refusal of registration, removal from the register and restoration of registration as a VAT taxable person;

the number of clearing accounts referred to in Article 49(1)(1) Act of 29 August 1997 - Bank law, or registered accounts in a cooperative savings and credit box, the entity of which is a member, opened in connection with the business activity of the member - indicated in the identification or update declaration and confirmed using STIR.

Tax payers are required to verify counterparties' bank accounts with accounts disclosed in the list. Payment of the amount 15,000 PLN to an account other than the one disclosed in the list gives rise to sanctions in the form of inability to credit the expenditure with the cost of obtaining revenue and the joint liability of the buyer for the tax due from the transaction in question.

the identification number, the company (name) and the address of the registered office or, in the case of a taxable person who is a natural person, the name and address of the permanent place of business and, in the case of a non-permanent place of business, the address of the place of residence, the taxable person making the payment;
details of the issuer of the invoice indicated on the invoice (identification number, name or surname and address);
the number of the account to which the payment was made;
the amount of the charge paid by transfer to the account referred to in point 3, And the day of the transfer to that account.

The White List of taxpayers operates at

https://www.podatki.gov.pl/wykaz-podatnikow-vat-wyszukiwarka/?fbclid=IwAR3zgckkcvlDjr_Ptx7Dr_WCIxXW6ud690NMzl9G8AoopZtyHtQKo816S_g It is to be updated once a day.

New VAT rate matrix

The amendment to the VAT Act implies the introduction of a new VAT rate matrix. The current system of classification of goods and services is inefficient and criticised for the complexity and lack of protection for taxpayers in the application of VAT rules based on the VAT (no binding power of classification opinions issued by the Central Statistical Office).

Therefore, the amendment introduced a change in the way goods and services are identified for VAT purposes and a departure from the application of the Polish Classification of Products and Services (PKWiU) 2008) to:

• The Combined Nomenclature (CN) for goods, and
• current Polish Classification of Products and Services of PKWiU 2015 services (CN only applies to goods).

The new VAT rate matrix is based on the following assumptions:

• party one (the same) the rate of taxation for the whole, where possible and with the rationality of the system, of the CN divisions,
• the adoption, where necessary, of a change in the rate to the goods concerned, of the general rule of lowering the rates (‘downward comparison’),
• the need to balance the introduction of a simple matrix with increases in rates on selected (but few) goods and services.

The result is a significant reduction in new positions Annex 3 and No 10 to the VAT Act, containing lists of goods and services taxed at rates respectively: 8% and 5% (of existing 150 to 73 In Annex 3 and 35 to 24 In Annex 10).

The solution introduced also results in a reduction of VAT rates on certain goods.

Binding WIS rate information

WIS is one from elements of the new concept of identifying goods and services for VAT purposes (including the new VAT rate matrix). The WIS is intended to provide taxpayers and tax authorities with more certainty as to the regularity of the rates applied. The WIS is intended to replace interpretations issued by the Centre for Classification and Nomenclature of the Statistical Office in Łódź (GUS).

The application for a WIS may be made by a taxable person with a NIP number, by an entity other than a VAT taxable person intending to supply goods, imports, goods, intra-Community acquisitions of goods or services and by a contracting entity within the meaning of the Act of 29 January 2004 – Public procurement law.

The application for a WIS shall contain:

• the applicant's name, address or registered office, tax identification number or other identification number;
• the name and address of the applicant’s representative, if established, or of other persons authorised to contact him on the application;

• identification of the subject matter of the application, including:

(a) a detailed description of the goods or services enabling them to be identified to be classified in accordance with the Combined Nomenclature (CN), the Polish Classification of Products and Services or the Polish Classification of Building Facilities,
(b) an indication of the classification according to which the goods or services are to be classified,
(c) an indication of the provisions of the law or of the implementing provisions adopted pursuant to it, in the case referred to in section 4;
• information on the fee payable on the application.

Binding Rate Information will include:

1) a description of the goods or services subject to the VIS;

2) classification of goods by heading, heading, subheading or CN code or by section, division, group or class of the Polish Classification of Construction Objects or services by division, group, class, category, subcategory or position of the Polish Classification of Products and Services necessary for:

(a) determining the rate of the tax applicable to the goods or services,
(b) the application of the provisions of the Act and the implementing provisions adopted on the basis thereof,
3) the tax rate appropriate to the goods or services.

The application for a WIS will be subject to a fee of 40 PLN. The authority responsible for issuing the WSI will be the Director of National Tax Information. In principle, the WIS shall appear without undue delay, but not later than the time limit 3 months after receipt of the request.

Binding Rate Information binds the tax authorities in the goods and services for which it has been issued, meaning that it has a protective value for taxpayers. In this respect, individual interpretations of the Director of KIS will no longer be issued.

Author:

Marcin Kołkowicz

Tax advisor, tax consultant at Russell Bedford Poland Sp. z o.o., graduate of the Administration, Management and Marketing of the Catholic University of Lublin named after John Paul II. The subject of tax law deals with from 2012. He gained experience in Lublin and in Warsaw tax advisory offices. Author and co-author of many tax publications, in particular for Tax and Tax Portal TaxFin.pl. In his career, he dealt with both direct and indirect taxation issues, with particular emphasis on VAT.