On July 1, 2020, a new regulation regarding VAT rates will enter into force, which will be based on the Combined Nomenclature for goods and PKWiU 2015 for services. Its purpose will be to organize and simplify existing regulations by adopting the same tax rate for entire CN departments. This will eliminate the situation in which similar goods are taxed differently. An additional facilitation will be the possibility of using a uniform classification of goods both in domestic and foreign trade.
Binding Rate Information is a new instrument to appear as a result of the changes. It takes the form of an administrative decision issued at the taxpayer’s request, in which the authority will determine the tax rate appropriate for a given good or service. This is to protect entrepreneurs, which will give them greater certainty as to the application of specific VAT rates.