SLIM VAT 3 - Binding Rate Information free of charge

On July 1, 2023, most of the provisions of the Act known as the SLIM VAT 3 package entered into force. One of the most important solutions of the package is the unification of the rules for issuing binding information, including the Binding Rate Information (WIS). We explain what the changes mean for taxpayers.

WIS from July free of charge, but there are exceptions

SLIM VAT package 3 came into force , including those regarding the issuance of WIS, Binding Rate Information. According to the Act, from July 1, 2023:

the issuance of WIS is not subject to a fee, unless it requires analysis or research,
the WIS issued for a purpose other than determining the VAT rate no longer contains a decision on the tax rate,
the issuance of all binding information is the responsibility of the Director of the National Tax Information (KIS).

As of July 1, WIS are generally issued free of charge. The exceptions are situations in which the examination of the application for the issuance of WIS requires research and analysis.

Moreover, the amendment clarified and unified the rules for delivering samples and making an advance payment for carrying out tests within the required period. The taxpayer may also appeal against the decision to leave the WIS application unprocessed in the event of failure to deliver samples of goods within the required time limit or failure to make an advance payment to cover the fee for sample testing. The taxpayer has the right to lodge a complaint against the decision issued in this mode.

Applying for WIS according to the new regulations

As mentioned above, WIS applications are generally free of charge from July 2023. Decisions regarding the issuance of WIS are made by the Director of the National Tax Information (KIS), and taxpayers can apply for WIS directly to the address of the National Tax Information or electronically via e-PUAP to the address of the National Tax Information box - /KIS/wnioski.

As from July 1, 2023, a new WIS application template has been in force.

The amendment to the SLIM VAT package also clarified the authority's powers to call to supplement the application for the issuance of the WIS with the documents required to properly classify the subject of the application.

If the taxpayer fails to provide the required documents within 7 days from the date of delivery of the summons, the authority will issue a decision to leave the application without consideration. In such a situation, the taxpayer has the right to lodge a complaint.

Furthermore, the scope of the binding power of the WIS has also been clarified. Currently, the WIS itself and the decision to change the WIS are also binding on the addressee of the decision. This means that a taxpayer who does not agree with the decision of the WIS cannot ignore the WIS. Similarly, tax authorities are also obliged to use the tax classification and rate in accordance with the issued WIS in tax proceedings, tax audits and customs and tax audits.

Period of validity of the WIS, revocation and expiration of the WIS

WIS is issued for a period of 5 years. In the light of the new regulations, from July 1, 2023, the Binding Rate Information is valid from the day following the date of its delivery until the day:

of the delivery of the decision to amend the Binding Rate Information or the decision to revoke the Binding Rate Information or,
before the date of its expiry or,
ending of the period for which it was issued,

depending on which of these events occurs first.

Moreover, as from July 1, 2023, the Director of KIS may revoke or amend the final WIS. Previously, only the Head of KAS had such powers. Decisions refusing to issue WIS and other final decisions issued in WIS matters may also be revoked.

Additionally, as from July 1, 2023, the Head of KAS may request the Director of KIS to initiate proceedings to amend or repeal WIS, if there are or may be indications that WIS may contain irregularities.

As for the expiry of the WIS power, it is possible and takes place if, as a result of changes in the provisions of the VAT Act or implementing regulations, the WIS indicated in: