Binding Tariff Information (BTI)

You are not fully convinced of correctness of classification or the right VAT rate for the sold goods or provided services? BTI is information issued in a form of an administrative decision in which Head of KAS establishes the right VAT rate for a given good or service, which simultaneously serves as an guarantee of the correct classification.

BTI requires all the tax authorities to follow that decision for the entities that received said decision. As a result, the authority that performs audit activities shall not impose sanctions on the taxpayer for applying the VAT rate provided by BTI.

The application of issuing BTI should contain:

identification data of the taxpayer and the representative acting on their behalf,
a precise description of the good or service to classify them properly
a marking dictating to which one of the three groups the good or service should be qualified to – if it should be Combined Nomenclature (CN), Polish Classification of Products and Services (PKWiU) or Polish Classification of Built Structures (PKOB).
a confirmation of payment for issuing BTI.

An application of issuing BTI costs 40 PLN. In case it includes several goods or services that, according to the taxpayer, are one activity subject to being taxed (compound performance), the sum will be a calculation based on 40 PLN multiplied by the number of goods and services.

You can submit your application in the following ways:

in person at the office,
by mail,
via Internet.

What does WIS contain?

a description of the good or a service it concerns,
classification of the good according to one of the three classification,
the proper tax rate for the selected good or a service.

How long do you need to wait for receiving WIS?

The BTI decision is issues in 3 months since the day the head of KIS received the application,
this deadline can be extended in case the application requires amendments or if it is necessary to perform more detailed explanations or analysis.

Legal remedies of BTI:

There is no need to apply for issuing an individual BTI to receive legal remedies if the taxpayer complies with the BTI decision that was issued to another entity earlier but is concerned with a good or service similar to their activities.

BTI decision are published in the Bulletin of Public Information for the National Revenue Administration. BTI will cease to be applicable as a result of changing the tax law regulations to which a given decision is referring to and if said change makes it contradictory with the new regulations. As a result of that , the expiration of it shall happen on the day of the new regulation coming into effect.

As a consequence of changing or waiving BTI:

the taxpayer shall not hold penal and fiscal liability (late payment interest will not be applied),
the taxpayer shall be free from the necessity of paying the tax.

Source:
https://www.biznes.gov.pl/pl/firma/podatki-i-ksiegowosc/chce-rozliczac-vat/proc_707-wiazaca-informacja-stawkowa

Legal grounds:
– Act of March 11th, 2004 on value added tax, – Act of November 16th, 2006 on administrative fee,
– Minister of Finance, Investments and Development ordinance of October 3rd, 2019 about payment methods for issuing a binding tariff information,
– Minister of Finance, Investments and Development ordinance of October 29th, 2019 about the pattern of application for issuing a binding tariff information.
– Act of March 2nd, 2020 about especial solutions connected with preventing, opposing, counteracting and fighting COVID-19, other infectious diseases and crisis situations caused by them.