Tax Rulings and Binding VAT Rate Information in Poland

Last updated: 26.02.2025

Tax Rulings in Poland – Types and Legal Implications

Polish tax law provides for two types of tax rulings that help clarify how the tax authority applies tax laws in specific cases:

• General tax rulings – Issued by the Minister of Finance, these rulings provide public knowledge and guidance applicable to all taxpayers.
• Individual tax rulings – Issued by the Director of National Fiscal Information, these rulings are tailored to a taxpayer’s specific set of facts and circumstances.

What is Individual Tax Rulings?

An individual tax ruling functions similarly to a private letter ruling under the Internal Revenue Code, where the Director of the National Tax Information upon the taxpayer’s request provides an official statement on specific tax matters. A taxpayer can request such a ruling for:

• Existing transactions
• Planned future transactions
• Clarification on the use of tax reliefs
• Interpretation of tax treaties or related statutes

One decision for Legal Protection – scope of individual interpretation

Once issued, an individual ruling provides protection to the taxpayer who follows it. If the taxpayer applies the written statement issued, they will not face penalties or interest, even if a tax inspection later questions the position.

However, this protection is limited to:

• The taxpayer who requested the ruling
• The specific case described in the ruling
• Situations where the tax consequences arise after the ruling is delivered

Unlike a final regulation, an individual ruling does not create a binding precedent for other members of the public. Nevertheless, it helps address issues taxpayers may face and offers a technical advice memorandum for specific tax scenarios.

Is there an appeal process for the tax ruling?

If a taxpayer disagrees with an individual ruling, they may appeal to the Administrative Court. In some cases, disputed interpretations may be subject to public input, or even a public hearing, ensuring transparency in how revenue rulings and treasury decisions shape Polish tax administration.

By incorporating revenue procedures and maintaining proper documentation, taxpayers can strengthen their compliance with tax regulations, even as new legislation evolves.

What is General Tax Rulings?

A general tax ruling provides protection to all taxpayers who comply with its guidance. In Poland, taxpayers can request a tax ruling if they seek clarification on the interpretation of tax laws and regulations in specific circumstances.

Who Can Request a Tax Ruling?

A request for a tax ruling may be submitted by:

• Individuals
• Legal entities (e.g., limited liability companies, joint-stock companies)
• Other entities (e.g., associations, civil partnerships)

Multiple interested parties can jointly apply for a ruling if they share a common legal or tax interest.

Issuance Deadline and Legal Effect for tax rulings

The tax authority has a statutory time limit of three months to issue a tax ruling. If this deadline is not met, the position stated in the application is presumed correct under Polish tax regulations.

Legal Nature of Individual Tax Rulings

Importantly, individual tax rulings are not legally binding on other taxpayers or tax authorities. They serve as an official interpretation of tax regulations but do not establish new legal principles. The ruling merely confirms whether a taxpayer’s understanding of related statutes aligns with the tax authority’s view.

How to Apply for an Individual Tax Ruling?

Taxpayers can submit an application:

• Electronically
• In person
• By mail to the Director of National Tax Information

These rulings provide legal certainty to the requesting taxpayer but do not influence revenue rulings or official interpretations applied to others.

What is Binding VAT Rate Information (WIS)?

A Binding Rate Information (WIS) decision is an official statement issued by the Director of National Tax Information, determining the correct VAT rate for specific goods or services. It may also include a classification of goods or services when required for regulatory purposes.

Mandatory Electronic Submission for WIS Applications

As of 1 January 2024, WIS applications can only be submitted electronically. There is no application fee; however, if additional studies or analyses are necessary, the authority will notify the applicant of any required payment.

The Director of National Fiscal Information must issue a WIS decision within three months of receiving the application. This deadline may be extended under certain circumstances.

What are the Practical Benefits of WIS?

Obtaining a WIS decision ensures legal protection for taxpayers, similar to a private letter ruling under the Internal Revenue Code. This means:

• The taxpayer can rely on the VAT rate specified in the WIS decision.
• If the WIS decision applies to identical goods or services for another taxpayer, it can still offer protection in tax matters.
• During a tax inspection, the tax authority cannot impose penalties for applying the VAT rate confirmed in the WIS ruling.

By ensuring compliance with revenue rulings, treasury decisions, and related statutes, the WIS system provides taxpayers with certainty and safeguards against unexpected tax liabilities.

FAQ – Tax Rulings and WIS in Poland