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Advicero Tax Nexia | TAX NEWS | October 2019

  1. Binding tariff information (you can apply already from November 1)
  2. Individual tax account numer
  3. Unified VAT rate for home photovoltaic installations
  4. Reduced VAT rate for e-books and e-press
  5. Changes in excise tax

1. Binding tariff information (you can apply already from November 1)

On November 1, 2019, as a result of the amendment of August 9, 2019 of the Act amending the Act on tax on goods and services and some other acts, the provisions on binding tariff information (BTI) will enter into force. BTI is a decision issued in connection with the VAT taxation of goods, the import of goods, the intra-community acquisition of goods or the provision of services.

The BTI contains a description of the good or service, the classification of the good necessary to determine the tax rate applicable to the good or service, or to apply the provisions of the Act and implementing regulations issued on its basis, as well as the appropriate tax rates for the good or service. BTI shall be issued upon application by taxpayer which has a tax identification number, an entity that does not have a tax identification number, but performs or intends to perform the activities referred to above, as well as the contracting entity within the meaning of the Public Procurement Law to the extent that this is to be affected on the method of calculating the price in connection with the public contract awarded. The fee for the application for issuing the BTI is 40 PLN. The form will be adopted in the regulation specifying the model application for the issuing of the BTI. The application element will be Annex “WIS-W/A”, in which all information that may affect the response should be specified. BTI will bind tax authorities toward entities, for which it was issued in respect of goods which are the subject of delivery, import or intra-Community acquisition made after the day on which BTI was delivered, in the scope of services that were performed after the day on which BTI was delivered, as well as in the scope of goods and services which together constitute one taxable activity performed after the day on which the BTI was delivered.

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2. Individual tax account numer

On January 1, 2020,  enter into force art. 61b of the Tax Code, which provides for the introduction of an individual tax account, to which all payments to the tax office will be made, with no breakdown into specific taxes.

According to the new wording of art. 61b, payment of personal income tax, corporate income tax, value added tax and non-tax budgetary receivables will be made to the account of the tax office using an individual tax account identifying the taxpayer or payer. The change applies only to specifically mentioned taxes and receivables. The structure of the individual tax account number will be in accordance with the format of the Bank Account Number and will contain the checksum, the settlement number of the bank’s organizational unit and the tax identifier. The individual tax account number will be made available after providing the tax identifier (PESEL number or NIP number), in the Public Information Bulletin on the entity’s website of the office supporting the minister competent for public finance or in the tax office. The first payments will be made from the beginning of January 2020. After obtaining an individual tax account, its use will become mandatory, as it is currently the case with ZUS accounts. Therefore, the use of previously assigned accounts of a given tax office will be incorrect.

3. Unified VAT rate for home photovoltaic installations

On September 11, 2019, the Sejm adopted Amendment No. 5 to the draft Act amending the Environmental Protection Act and the Trade Inspection Act. Project adopted a new definition of housing covered by the housing program, in connection with which “housing covered by the social housing program means housing facilities or a part thereof […] as well as the micro-installation referred to in art. 2 point 19 of the Act of 20 February 2015 on renewable energy sources, functionally related to them “(Article 41 (12a)).

The Sejm unified the VAT rate on home photovoltaic installations. The previous 8% rate applied only to people who installed solar panels on the roofs of their own houses. Other installations were subject to a higher 23% tax. In practice, this means that owners of single-family residential buildings with an area of ​​up to 300 m2 will be able to make a photovoltaic installation with VAT of 8%, as long as it is functionally associated with these buildings. The point is not where the solar installation is located, but whether it is associated with buildings. So it does not necessarily have to be the roof of this building, if only this property was supplied from this installation. All such systems will be subject to 8% VAT.

4. Reduced VAT rate for e-books and e-press

As a result of the amendment to the Act amending the Act on tax on goods and services and the Act – Tax Ordinance, the VAT rate on e-books will be reduced from the current 23% to 5%. In the case of e-press, the VAT rate will be reduced from 23% to 8%. The changes will enter into force on November 1, 2019.

The 5% rate will apply to goods and services listed in Annex 10, including publications delivered electronically in item 19 of the Annex, i.e. goods covered by the CN, i.e. books, brochures, leaflets and similar materials, printed, whether or not in individual sheets – excluding leaflets, newspapers, journals and periodicals, whether or not illustrated or containing advertising material – only regional or local magazines, children’s books, pictorial, drawing or coloring books, printed or manuscript notes, whether or not illustrated or bound, maps and hydrographic maps or similar maps of all kinds, including atlases, wall maps, topographical plans and globes, printed and other printed matter , including printed pictures and photos – only regional or local magazines. The above regulation excludes publications that consist wholly or mainly of video content or music that can be played, regional or local magazines. In the case of e-press and the 8% rate, it will include electronic publication from items 17.19 points 2 and 6 of Annex 10, i.e. books, newspapers, pictures and other products of the printing industry, printed, manuscripts, typescripts and plans – only goods covered by the CN, i.e. newspapers, journals and magazines, whether or not illustrated or containing advertising material – excluding regional or local magazines, other printed articles, including printed pictures and photographs – only vintage, excluding regional or local magazines, newspapers, journals and magazines, whether or not illustrated or containing advertising material – only regional or local magazines and other printed articles, including printed pictures and photographs – only regional or local magazines, excluding publications which consist wholly or mainly of content deo or music that can be played. In the case of specialist magazines, the amendment imposes an increased VAT rate on them from the current 5% to 8%.

5. Changes in excise tax

The Ministry of Finance has published a bill amending the act on excise tax and some other acts. In connection with the amendment will enter, inter alia, taxation of design changes that allow you to change a truck into a passenger car, calculating tax even when a fictitious purchase agreement with a foreign entity is concluded and the obligation to obtain for the purposes of registration of trucks and special vehicles with a permissible total weight of up to 3.5 t document confirming the absence of an obligation payment of excise tax.

The amended provisions are to enter into force on January 1, 2020, currently the draft is at the stage of public consultation. The changes will also apply to the tightening of penalties for crime and excise offenses. Therefore, instead of resigning from taxation of passenger cars, which results in their excessive price, the legislator intends to seal taxation in this respect.

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