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Since 1 July 2020 a new matrix of VAT rates has been applied

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Date15 Jun 2020
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Pursuant to the Act of 9 August 2019 amending the Value Added Tax and several other acts (Journal of Laws of 2019 item 1751, 2200 and of 2020, item 568), since 1 July 2020 a new matrix of VAT rates has been applied. Once in force, the Polish Classification of Products and Services (PKWiU 2008) is abandoned in favour of:

  • Combined Nomenclature (CN) or Polish Classification of Types of Constructions (PKOB) as regards goods and
  • the current (effective from 1 April 2020) Polish Classification of Products and Services (PKWiU 2015) as regards services.

This also involves a general reduction of VAT rates, since from now on, the various chapters of the Combined Nomenclature (CN) (which include certain groups of goods) have been subject to a single rate of VAT, and where there was a need to change the rate for certain goods, the principle of “levelling-down” has been adopted, i.e. generally the VAT rate was reduced.

Since the introduction of the new matrix of VAT rates, the WIS (Binding Rate Information) has come into force, which can provide legal protection against tax authorities. The WIS is an administrative decision in which the Director of the National Revenue Information determines which VAT rate is appropriate for the goods or services indicated by you. It has been possible to apply for it since 1 November 2019.

The application of a single VAT rate for individual chapters of the Combined Nomenclature simplified the assignment of groups of goods to the correct rates.

New matrix of VAT rates for goods

From 1 July 2020, the Polish Classification of Products and Services (PKWiU 2008) was no longer used, and goods for VAT purposes are currently marked using the Combined Nomenclature (CN) or the Polish Classification of Types of Constructions (PKOB).

Since then, the whole groups of goods (CN chapters) are subject to a single VAT rate, so as to simplify the VAT rate system.

It is worth mentioning that every year the European Commission publishes a new version of the Combined Nomenclature in an implementing regulation. Therefore, taxpayers have to check every year whether the classification of the goods they are interested in has changed.

The Combined Nomenclature (CN) in force in 2020 was introduced by Commission Implementing Regulation (EU) 2019/1776 of 9 October 2019 amending Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff.

The CN number of the goods can be determined using the correspondence tables between CN and PKWiU 2015 and between PKWiU 2015 and PKWiU 2008 published by the Central Statistical Office of Poland.

Some examples of the new VAT rates, which have been in force since 1 July 2020, are given below:

  • tropical fruits and citrus fruits, some nuts (pistachios, almonds, coconuts) – from 8% to 5%,
  • all kinds of bread and cakes – 5%,
  • soups, broths, homogenised food, including dietary foods for special medical purposes – from 8% to 5%,
  • mustard, sweet pepper, some processed spices (e.g. pepper, nutmeg, thyme) – from 23% to 8%,
  • products for babies and children, e.g. teats, nappies and car seats – from 8% to 5%,
  • hygienic articles (sanitary towels, tampons, nappies) – from 8% to 5%,
  • some unprocessed spices (e.g. nutmeg, mace, cumin, saffron, curcuma) – from 5% to 8% (effect of unification of VAT rates for spices).

Source:
https://www.podatki.gov.pl/vat/abc-vat/matryca-stawek-vat/
https://www.biznes.gov.pl/pl/firma/podatki-i-ksiegowosc/chce-rozliczac-vat/proc_707-wiazaca-informacja-stawkowa
https://www.gov.pl/web/finanse/co-nowego-w-lipcu–dzialania-mf-i-kas
https://www.kis.gov.pl/wiadomosci/komunikaty/-/asset_publisher/W24v/content/matryca-stawek-od-1-lipca-2020-r?redirect=https%3A%2F%2Fwww.kis.gov.pl%2Fstart%3Fp_p_id%3D101_INSTANCE_4N6z%26p_p_lifecycle %3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3D_118_INSTANCE_Jjb0__column-2%26p_p_col_count%3D1

If you have any further questions or require additional information, please contact your business relationship person or use the enquiry form on the getsix® website.

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This circular is non-binding information and serves for general information purposes. The information provided does not constitute legal, tax or management advice and does not replace individual advice. Despite careful processing, all information in this circular is provided without any guarantee for the accuracy, up-to-date nature or completeness of the information. The information in this circular is not suitable as the sole basis for action and cannot replace actual advice in individual cases. The liability of the authors or getsix® are excluded. We kindly ask you to contact us directly for a binding consultation if required. The content of this circular is the intellectual property of getsix® or its partner companies and is protected by copyright. Users of this information may download, print and copy the contents of the circular exclusively for their own purposes.

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