CELEX: 
Language: en
Date: 2022-02-22
Title: Proposal for a COUNCIL IMPLEMENTING DECISION amending Implementing Decision (EU) 2019/310 authorising Poland to apply a special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value added tax

EUROPEAN
                           COMMISSION
                                                    Brussels, 22.2.2022
                                                    COM(2022) 58 final
                                                    2022/0040 (NLE)
                                       Proposal for a
                        COUNCIL IMPLEMENTING DECISION
    amending Implementing Decision (EU) 2019/310 authorising Poland to apply a special
   measure derogating from Article 226 of Directive 2006/112/EC on the common system of
                                     value added tax
EN                                                                                      EN
 ---pagebreak---                                   EXPLANATORY MEMORANDUM
   Pursuant to Article 395(1) of Directive 2006/112/EC of 28 November 2006 on the common
   system of value added tax (hereafter 'the VAT Directive'), the Council, acting unanimously on
   a proposal from the Commission, may authorise any Member State to apply special measures
   for derogation from the provisions of that Directive in order to simplify the procedure for
   collecting VAT or to prevent certain forms of tax evasion or avoidance.
   In accordance with Article 2 of Council Implementing Decision (EU) 2019/3101, Poland
   submitted a report to the Commission on its overall impact on the level of VAT fraud and on
   the taxable persons concerned on 29 April 2021 and registered on 5 May 2021.
   By letter registered with the Commission on 26 July 2021 Poland requested an authorisation
   to continue to derogate from Article 226 of the VAT Directive with regard to value added tax
   (VAT) invoicing requirements and to introduce the mandatory split payment mechanism for
   supplies of goods and services susceptible to fraud covered generally by the reverse charge
   mechanism and joint and several liability in Poland. In accordance with Article 395(2) of the
   VAT Directive, the Commission informed the other Member States by letter dated 27 October
   2021 of the request made by Poland. By letter dated 28 October 2021, the Commission
   notified Poland that it had all the information necessary to consider the request.
   1.        CONTEXT OF THE PROPOSAL
   •         Reasons for and objectives of the proposal
   Poland introduced the voluntary split payment mechanism on 1 July 2018. Following Council
   Implementing Decision (EU) 2019/310, Poland introduced the mandatory split payment
   mechanism for the payment of VAT for certain supplies of goods and services susceptible to
   fraud. The mandatory split payment mechanism is based on the same principles of the
   voluntary split payment mechanism. Both models of split payment mechanism (i.e. voluntary
   and obligatory) exist in parallel, and they usually supplement each other. This implies that
   both models are based on the same system of bank accounts and refer to transactions between
   businesses (B2B) where, the payment is made by electronic bank transfer. When a taxable
   person carries out supplies within the scope of the split payment provisions, they are obliged
   to have, in addition to his regular bank account, a separate blocked VAT account. The bank
   will act as a splitting agent and perform the activities with the aim of transferring the amount
   paid by the customer to the relevant accounts of the supplier, i.e. the taxable amount to the
   regular account of the trader; and the VAT amount to the trader's blocked VAT account.
   Funds on the blocked VAT account are owned by the taxable person. However, it is only
   possible to dispose of the funds in relation to the payment of the VAT due to the tax authority
   or VAT resulting from invoices received from suppliers.
   By imposing that the VAT due is paid to a blocked VAT bank account of the supplier, the
   measure aims at combating tax fraud in the form of non-payment of VAT liability by
   suppliers of goods and services which are susceptible to fraud. Since the amount of VAT
   deposited on a separate VAT account of a taxable person can only be used for restricted
   purposes, namely for the payment of the VAT liability to the tax authority or the payment of
   VAT on invoices received from suppliers, it is better guaranteed that the tax authorities will
   receive the whole VAT amount which should be transferred by the taxable person in favour of
   the State Treasury.
   1
           Council Implementing Decision (EU) 2019/310 of 18 February 2019 authorising Poland to introduce a
           special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value
           added tax (OJ L 51, 22.2.2019, p. 19–27).
EN                                                      1                                                     EN
 ---pagebreak---    The split payment mechanism becomes mandatory when at least one item specified on the
   invoice whose total gross amount (including VAT) exceeds PLN 15,000 and refers to the
   goods or services susceptible to fraud included in the scope of the derogating measure listed
   in the annex.
   These supplies cover economic sectors such as steel, scrap, electronical equipment, gold, non-
   ferrous metals, fuels and plastics which were generally subject to the reverse charge
   mechanism and to joint and several liability in Poland prior to the implementation of the
   mandatory split payment (the list of supplies to be covered by the split payment mechanism
   was included in Annex to Council Implementing Decision (EU) 2019/310).
   The Republic of Poland notes that upon the entry into force of the so-called new “VAT rates
   matrix” on 1 July 2020, the method for classifying goods and services has changed for the
   purposes of applying the mandatory split payment mechanism, consisting in replacing the
   Polish Classification of Goods and Services of 2008 (PKWiU 2008) with the Polish
   Classification of Goods and Services of 2015 (PKWiU 2015). The transition to PKWiU 2015
   did not cause any changes in the scope of goods and services covered by the mandatory split
   payment mechanism upon Decision 2019/310. It should therefore be emphasized that the
   scope of goods and services listed in the Annex to Decision 2019/310 will remain valid. In
   some items of PKWiU 2015, only the symbols of the statistical classification or the editorial
   names of goods and services were modified in relation to the PKWiU 2008, on which the
   Annex to Decision 2019/310 is based. However, it did not cause any changes in the scope of
   goods and services covered by the mandatory split payment mechanism. For the sake of legal
   certainty, the Annex to Decision 2019/310 should be updated to reflect the changes brought to
   PKWiU 2008 by PKWiU 2015.
   The derogating measure requires that any invoices issued for the supply of goods and services
   between VAT payers, within the scope of the split payment mechanism, include a special
   statement that VAT shall be paid to the separate blocked VAT bank account of the supplier.
   Under the general rules applicable in Poland, in case of the surplus of input tax over the
   output tax recognised by the taxable person in the VAT return as a VAT refundable amount,
   such refund will be carried out within 60 days to taxable person's regular account. To reduce
   the effects of the split payment model on traders' cash flow, a faster procedure is foreseen by
   Poland for the refund of the input tax surplus. At the request of the taxable person the refund
   will take place within 25 days. Nevertheless, according to the information provided by
   Poland, such requests are treated in a much shorter period of time (as it stems from the
   assessment of the obligatory split payment mechanism the applications for releasing funds
   were decided on within less than 16 days during December 2020).
   According to Poland, the costs of operating the split payment system should not be significant
   and will mostly be connected to the implementation of the system, its servicing and to
   managing the bank account.
   The mandatory split payment mechanism is one of the key elements of the complementary
   measures that are aimed at reducing VAT fraud and modernizing the Polish tax system, which
   have been introduced by Poland in recent years2.
   2
           The most relevant connected measures are: the Single Audit File (JPK_VAT); the electronic system for
           analysing cash flows (STIR); the accurate and reliable electronic register of VAT payers (White List);
           the system of online cash registers for monitoring the retail sector; the new VAT rates matrix which
EN                                                       2                                                        EN
 ---pagebreak---    Taking into account the above, the Commission is of the view that the mandatory split
   payment mechanism for supplies of goods and services susceptible to fraud and listed in the
   Annex can bring effective results in the fight against tax fraud. Therefore, it is proposed to
   grant the derogation as from 1 March 2022 until 28 February 2025.
   •         Consistency with existing policy provisions in the policy area
   The derogation can be authorised based on Article 395 of the VAT Directive in order to
   simplify the procedure for collecting VAT or to prevent certain forms of tax evasion or
   avoidance. Poland requested the derogating measure to fight tax evasion in the sectors in
   which VAT fraud has been detected for years. The derogation is consistent with the existing
   policy provisions.
   By Council Implementing Decision (EU) 2020/11053 Italy was authorised to extend a similar
   derogation to apply the split payment mechanism. Under the Italian split payment system, the
   VAT due is paid to the blocked VAT account at the tax authorities. The scope of the Italian
   derogation is limited to supplies to public authorities, entities controlled by public authorities
   and a number of companies listed on the stock exchange.
   2.        LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
   •         Legal basis
   Article 395 of the VAT Directive.
   •         Subsidiarity (for non-exclusive competence)
   Considering the provision of the VAT Directive on which the proposal is based, the
   subsidiarity principle does not apply.
   •         Proportionality
   The proposal complies with the proportionality principle for the following reasons.
   The Decision concerns an authorisation granted to a Member State upon its own request and
   does not constitute any obligation.
   The derogation is limited in time and restricted to specific supplies, the scope is targeted to
   sectors which pose considerable problems of tax fraud.
   Given the broad scope of the derogation, a report on the functioning and the effectiveness of
   the measure on the level of VAT fraud and on the taxable persons (regarding the refunds of
   VAT, the administrative burden, costs for taxable persons etc.) is to be submitted by Poland in
   case Poland requests to prolong the special measure.
   Therefore, the special measure is proportionate to the aim pursued, i.e. to combat tax evasion
   and simplify tax collection.
           simplified the application of reduced VAT rates and increased the certainty of the taxable persons as to
           the correct application of the VAT rates through introduction of the binding rate information which is a
           decision issued at the request of the taxable person to set out the correct rate for goods/services;
           advanced big data analysis by the revenue administration; the digitalization of the revenue
           administration.
   3
           Council Implementing Decision (EU) 2020/1105 of 24 July 2020 amending Implementing Decision
           (EU) 2017/784 authorising the Italian Republic to apply a special measure derogating from Articles 206
           and 226 of Directive 2006/112/EC on the common system of value added tax (OJ L 242, 28.7.2020, p.
           4–6).
EN                                                        3                                                         EN
 ---pagebreak---    •         Choice of the instrument
   Proposed instrument: Council Implementing Decision.
   Under Article 395 of the VAT Directive, derogation from the common VAT rules is only
   possible upon authorisation of the Council acting unanimously on a proposal from the
   Commission. A Council Implementing Decision is the most suitable instrument since it can be
   addressed to an individual Member State.
   3.        RESULTS              OF         EX-POST          EVALUATIONS,            STAKEHOLDER
             CONSULTATIONS AND IMPACT ASSESSMENTS
   •         Stakeholder consultations
   This proposal is based on a request made by Poland and concerns only this Member State.
   •         Collection and use of expertise
   There was no need for external expertise.
   •         Impact assessment
   The proposal for a Council Implementing Decision authorises Poland to derogate from Article
   226 of the VAT Directive and to introduce the mandatory split payment mechanism for the
   payment of VAT on specific supplies of goods and services.
   In accordance with Article 2 of Decision 2019/310, Poland was obliged to submit a report to
   the Commission on the overall impact of the mandatory split payment mechanism on the level
   of VAT frauds and on the taxable persons concerned within 18 months after the entry into
   force of the measure referred to in Article 1 of the Decision. As this measure applies from 1
   November 2019, the aforementioned report was submitted to the Commission on 29 April
   2021 and registered by the Commission on 5 May 2021.
   The assessment of the functioning of the mandatory split payment mechanism made by
   Poland, shows in particular that this measure is complementing other key measures to reduce
   tax evasion4. The implemented complementary measures to the mandatory split payment
   mechanism, have contributed to reducing the scale of VAT frauds, including carousel frauds
   and VAT extortions. Poland has recorded a significant shrinkage of the VAT gap that fell
   below the EU average within a short time. According to the CASE's estimates for the
   European Commission, it fell down to approx. 9.7% in 2019 (marking a decrease by 0.2 pp
   against 2018)5, while the VAT gap was equal to approx. 14% in 2017. Due to the economic
   crisis caused by the pandemic, the economic situation in Poland deteriorated significantly in
   2020 and consumption demand weakened. However, the preliminary estimates of the Ministry
   of Finance included in the Multiannual State Financial Plan for the years 2021-2024 indicate
   that the VAT gap shrank by further 1.3 pp during 2020 irrespective of the recession and
   accounted for approx. 10.8% of the potential inflows.
   The funds on the blocked VAT account cannot be disposed of by the taxable person unless it
   is for the payment of VAT due to the tax authority or VAT resulting from invoices received
   4
            See list of measures in footnote 2
   5
            Study and Reports on the VAT Gap in the EU-28 Member States 2020 Final Report, CASE – Center for
            Social and Economic Research (Project leader) September – 2020.
EN                                                       4                                                   EN
 ---pagebreak---    from suppliers impacting thus traders' cash flow. To diminish the negative impact, in case of
   the surplus of input tax over the output tax recognised by the tax authorities, a faster
   procedure is foreseen by Poland for the refund of the input tax surplus. At the request of the
   taxable person the refund will take place within 25 days from the submission date of the tax
   return, instead of 60 days under the normal procedure. During the preliminary phase of the
   voluntary split payment mechanism (starting from 1 July 2018), it took the tax authorities an
   average of 27.56 days to process an application, while the same proceeding has taken only
   15.90 days in December 2020. This means that the applications for releasing funds are
   processed by the tax authorities in an increasingly efficient way. This is especially important
   during the current situation caused by the COVID-19 pandemic, for businesses that have
   problems with continuous financial liquidity.
   Furthermore, Poland underlined in the request that ensuring effective and timely performed
   tax refunds will be treated as priority. It will accelerate the refund of the surplus of input tax
   over output tax to the VAT account on preferential terms within a maximum period of 25
   days from the submission date of the settlement (tax return).
   Suppliers that are not established in Poland are also covered by the mandatory split payment
   mechanism when carrying out the supplies of goods or services subject to the mandatory split
   payment in Poland. These traders have to hold a bank account operated pursuant to Polish
   Banking Law. Poland reported to the Commission, that the non-established traders do not
   incur any additional costs relating to the obligation of opening the bank account in Poland,
   since these taxable persons will be able to open and hold the bank account in Poland free of
   charge. As at present, the taxable persons not established in Poland do not incur any
   additional costs in relation to the obligation to open a bank account in Poland and keep a VAT
   account. The VAT Act provides for a special system of compensations in case such entities
   would be charged by their banks for keeping the aforementioned accounts. In such a situation,
   the incurred costs are reimbursed by the competent tax authority at the request of the foreign
   taxable person.
   Another significant advantage is that the taxable persons applying the split payment
   mechanism cannot , as a rule, be imposed the so-called VAT sanction in the form of an
   increased VAT liability, to be established by the tax authority (equivalent to 20%, 30% or
   100% of the difference between the amount established by the tax authority and the original
   amount incorrectly declared by the taxable person). Furthermore, the entrepreneur applying
   the split payment mechanism cannot be charged with default interest for VAT debts at an
   increased rate (equivalent to 150%), accrued during the reporting period in which it used the
   mechanism to pay for at least 95% of its purchase invoices.
   The so-called discount improves the financial liquidity of the taxable persons applying the
   split payment mechanism. It allows reducing the amount of VAT liability in case it will be
   paid in total from the VAT account before the final payment date. The discount amount is
   calculated according to a special formula. Such discount should not have an adverse impact
   on the Union’s own resources accruing from VAT.
   Before the implementation of the special measure, there were 3,507 proceedings initiated due
   to the offences related to VAT extortions in 2018 and 3,389 proceedings in 2019 (a decrease
   by 118 year to year). In 2020, when the mandatory split payment mechanism became fully
   operational, the number of such proceedings amounted to 2,973, i.e. 416 less compared to the
   preceding year.
EN                                                   5                                                EN
 ---pagebreak---    Before the entry into force of the mandatory split payment mechanism, the amount of budget
   losses due to VAT extortion was equal to PLN 5,168,779,146 in 2018 and PLN 4,716,202,928
   in 2019 (a decrease by PLN 452,576,218 year to year). In 2020, the budget losses amounted
   to PLN 3,533,646,348, i.e. PLN 1,182,556,580 less compared to the preceding year (a
   decrease by nearly 25.1%).
   Before the implementation of the derogating measure, the number of the initiated proceedings
   concerning VAT carousel fraud was 558 in 2018 and 277 in 2019 (a decrease by 281 year to
   year). In 2020, when the mandatory split payment mechanism was operational, the number of
   such proceedings amounted to 207, i.e. 70 less compared to the preceding year. It was also
   recorded during the analysed period that the identified budget losses due to VAT carousel
   frauds were on a gradual decrease. Before the entry into force of the mandatory split payment
   mechanism, the amount of the respective budget losses amounted to PLN 4,496,602,940 in
   2018 and PLN 2,468,437,745 in 2019 (a decrease by PLN 2,028,165,195 year to year). In
   2020, such losses amounted to PLN 1,107,992,201, i.e. PLN 1,360,445,544 less than in the
   preceding year (a decrease by almost 55.1%).
   In 2019, the VAT revenue amounted to PLN 180,891.8 million (an increase by PLN 5,944.7
   million compared to 2018). The preliminary data on the performance of the state budget in
   2020 indicates that the revenue from the tax on goods and services went up compared to the
   preceding years irrespective of the spread of COVID-19 pandemic. In 2020, the VAT revenue
   amounted to PLN 184,551.9 million and were by PLN 3,660.1 million (by 2%) higher
   compared to the VAT revenue in 2019 , and accordingly by PLN 9,604.8 million (by 5.5%)
   higher compared to 2018 (PLN 174,947.1 million).
   4.       BUDGETARY IMPLICATIONS
   The measure will have no negative impact on the Union's own resources accruing from VAT.
   5.       OTHER ELEMENTS
   The proposal includes a sunset clause; an automatic time limit.
EN                                                6                                              EN
 ---pagebreak---                                                                2022/0040 (NLE)
                                                Proposal for a
                              COUNCIL IMPLEMENTING DECISION
     amending Implementing Decision (EU) 2019/310 authorising Poland to apply a special
   measure derogating from Article 226 of Directive 2006/112/EC on the common system of
                                               value added tax
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Council Directive 2006/112/EC of 28 November 2006 on the common
   system of value added tax1, and in particular Article 395(1) thereof,
   Having regard to the proposal from the European Commission,
   Whereas:
   (1)    By letter registered with the Commission on 26 July 2021 Poland requested an
          authorisation to continue to derogate from Article 226 of the VAT Directive with
          regard to value added tax (VAT) invoicing requirements and to introduce the
          mandatory split payment mechanism for supplies of goods and services susceptible to
          fraud and generally covered by the reverse charge mechanism and joint and several
          liability in Poland. Poland requested the extension of the special measure for a period
          of three years, from 1 March 2022 to 28 February 2025.
   (2)    In accordance with Article 395(2) of the VAT Directive, the Commission informed the
          other Member States by letter dated 27 October 2021 of the request made by Poland.
          By letter dated 28 October 2021, the Commission notified Poland that it had all the
          information necessary to consider the request.
   (3)    Pursuant to Article 2 of Council Implementing Decision (EU) 2019/3102, Poland
          submitted a report to the Commission on its overall impact on the level of VAT fraud
          and on the taxable persons concerned by letter dated 29 April 2021.
   (4)    Although Poland has taken numerous measures to fight fraud (e.g. the introduction of
          the reverse charge mechanism and of the joint and several liability by the customer,
          the introduction of the Standard Audit File, tighter rules for VAT registration and de-
          registration of taxable persons, increased number of audits, etc.), it considers that those
          measures are still insufficient to prevent VAT fraud.
   (5)    Poland introduced the voluntary split payment mechanism on 1 July 2018 and the
          mandatory split payment mechanism on 1 March 2019.
   1
          OJ L 347, 11.12.2006, p. 1.
   2
          Council Implementing Decision (EU) 2019/310 of 18 February 2019 authorising Poland to introduce a
          special measure derogating from Article 226 of Directive 2006/112/EC on the common system of value
          added tax (OJ L 51, 22.2.2019, p. 19–27).
EN                                                     7                                                     EN
 ---pagebreak---    (6)     The goods and services in the scope of the special measure are listed in the Annex in
           accordance with the Polish Classification of Goods and Services of 2015 (PKWiU
           2015) which has replaced the Polish Classification of Goods and Services of 2008
           (PKWiU 2008) from 1 July 2020. In PKWiU 2015 the symbols of the statistical
           classification and the editorial names of certain goods and services that appear in the
           Annex to Implementing Decision (EU) 2019/310 have been modified. That Annex
           should therefore be updated and replaced by the Annex to this Decision.
   (7)     The mandatory split payment model will continue to apply to the supplies between
           taxable persons, business-to-business (B2B) supplies, of goods and services listed in
           the Annex and will cover only electronic bank transfers. The obligatory split payment
           mechanism will continue to be applicable to all traders, including those traders who
           are not established in Poland.
   (8)     The report submitted by Poland confirmed that the mandatory split payment
           mechanism for supplies of goods and services susceptible to fraud brings effective
           results in the fight against tax fraud.
   (9)     Derogations are in general granted for a limited period of time to allow an assessment
           whether the special measure is appropriate and effective. The special measure should
           therefore be extended until 28 February 2025.
   (10)    Given the broad scope of the derogation, a report on the functioning and the
           effectiveness of the measure on the level of VAT fraud and on the taxable persons
           (regarding the refunds of VAT, the administrative burden, costs for taxable persons
           etc.) is to be submitted by Poland with in case of request to prolong the derogating
           measure.
   (11)    The special measure will not negatively affect the overall amount of tax revenue
           collected at the stage of final consumption and will have no adverse impact on the
           Union’s own resources accruing from VAT.
   (12)    Implementing Decision (EU) 2019/310 should therefore be amended accordingly,
   HAS ADOPTED THIS DECISION:
                                                 Article 1
   Implementing Decision (EU) 2019/310 is amended as follows:
       (1) in Article 2, the second subparagraph is replaced by the following:
   ‘Where Poland considers that the extension of the measure referred to in Article 1 is
   necessary, Poland shall submit a request for extension to the Commission, together with a
   report on its overall impact on the level of VAT fraud and on the taxable persons concerned’.
       (2) in Article 3, the date ‘28 February 2022’ is replaced by the date ‘28 February 2025’.
       (3) the Annex is replaced by the Annex to this Decision.
EN                                                   8                                             EN
 ---pagebreak---                                              Article 2
   This Decision is addressed to the Republic of Poland.
   Done at Brussels,
                                               For the Council
                                               The President
EN                                               9             EN
 ---documentbreak---                            EUROPEAN
                           COMMISSION
                                                    Brussels, 22.2.2022
                                                    COM(2022) 58 final
                                                    ANNEX
                                          ANNEX
                                   to the Proposal for a
                        COUNCIL IMPLEMENTING DECISION
   amending Implementing Decision (EU) ) 2019/310 authorising Poland to apply a special
   measure derogating from Article 226 of Directive 2006/112/EC on the common system of
                                      value added tax
EN                                                                                      EN
 ---pagebreak---                                                ANNEX
                    List of supplies of goods and services covered by Article 1
   Article 1 shall apply to the following supplies of goods and services described according to
   the Polish Classification of Products and Services (PKWiU 2015)
                               Name of goods (group of goods) / services (group of        Item in
    Item     PKWiU 2015                                                                  Annex to
                                                       services)
                                                                                         Decision
                                                                                         2019/310
      1       05.10.10.0      Hard coal                                                     129
      2       05.20.10.0      Lignite                                                       130
      3         ex 10.4       Animal and vegetable oils and fats - exclusively rape oil      70
                              Coke and semi-coke of coal and lignite or of peat; retort
      4       19.10.10.0                                                                    131
                              carbon
                              Briquettes, ovoids and similar solid fuels manufactured
      5       19.20.11.0                                                                    132
                              from coal
                              Briquettes, ovoids and similar solid fuels manufactured
      6       19.20.12.0                                                                    133
                              from lignite
                              Emulsions for surface sensitization for use in
                              photography; chemical preparations for use in
      7      ex 20.59.12.0    photography, not elsewhere classified (n.e.c.) -               71
                              exclusively toners without a print head for printers for
                              automatic data-processing machines
                              Typewriter ink, draft ink and other inks - exclusively ink
      8      ex 20.59.30.0    cartridges without a print head for printers for automatic     72
                              data processing machines
                              Plates, sheets, film, foil, strip and plastic strips, non-
      9      ex 22.21.30.0    cellular, not reinforced, laminated or combined with           73
                              other materials - exclusively stretch foil
     10       24.10.12.0      Ferro-alloys                                                    1
                              Pig iron and specular pig iron or steel, in the form of
     11       24.10.14.0                                                                      2
                              granules or powder
EN                                                 1                                              EN
 ---pagebreak---                  Flat rolled products of non-alloy steel, hot-rolled, of a
   12 24.10.31.0                                                               3
                 width of >= 600 mm
                 Flat rolled products of non-alloy steel, hot-rolled, of a
   13 24.10.32.0                                                               4
                 width of < 600 mm
                 Flat rolled products of other alloy steel, hot-rolled, of a
   14 24.10.35.0 width of >= 600 mm, excluding products of electrical          5
                 silicon steel
                 Flat rolled products of other alloy steel, hot-rolled, of a
   15 24.10.36.0 width of < 600 mm, excluding products of electrical           6
                 silicon steel
                 Flat rolled products of non-alloy steel, cold-rolled, of a
   16 24.10.41.0                                                               7
                 width of >= 600 mm
                 Flat rolled products of other alloy steel, cold-rolled, of a
   17 24.10.43.0 width of >= 600 mm, excluding products of electrical          8
                 silicon steel
                 Flat rolled products of non-alloy steel, of a width of >=
   18 24.10.51.0                                                               9
                 600 mm, clad, plated or coated
                 Flat rolled products of other alloy steel, of a width of >=
   19 24.10.52.0                                                              10
                 600 mm, clad, plated or coated
                 Bars and rods, hot rolled, in irregularly wound coils, of
   20 24.10.61.0                                                              11
                 non-alloy steel
                 Other bars and rods of steel, not further worked than
   21 24.10.62.0 forged, hot rolled, hot-drawn or extruded, but including     12
                 those twisted after rolling
                 Bars and rods, hot rolled, in irregularly wound coils, of
   22 24.10.65.0                                                              13
                 other alloy steel
                 Other bars and rods of other alloy steel, not further
   23 24.10.66.0 worked than forged, hot rolled, hot-drawn or extruded,       14
                 but including those twisted after rolling
                 Open sections, not further worked than hot rolled, hot-
   24 24.10.71.0                                                              15
                 drawn or extruded, of non-alloy steel
                 Open sections, not further worked than hot rolled, hot-
   25 24.10.73.0                                                              16
                 drawn or extruded, of other alloy steel
EN                                    2                                          EN
 ---pagebreak---                     Line pipe of a kind used for oil or gas pipelines,
   26  24.20.11.0                                                              59
                    seamless, of steel
                    Casing, tubing and drill pipe, of a kind used in the
   27  24.20.12.0                                                              60
                    drilling for oil or gas, seamless, of steel
                    Other tubes and pipes, of circular cross section,
   28  24.20.13.0                                                              61
                    seamless, of steel
                    Line pipe of a kind used for oil or gas pipelines, welded,
   29  24.20.31.0                                                              62
                    of an external diameter of <= 406,4 mm, of steel
                    Other tubes and pipes, of circular cross section, welded,
   30  24.20.33.0                                                              63
                    of an external diameter of <= 406,4 mm, of steel
                    Tubes and pipes, of non-circular cross-section, welded,
   31  24.20.34.0                                                              64
                    of an external diameter of <= 406,4 mm, of steel
   32  24.20.40.0   Tube or pipe fittings of steel, not cast                   65
                    Bars, angles, sections and solid profiles of non-alloy
   33  24.31.10.0                                                              17
                    steel, cold drawn
                    Bars, angles, sections and solid profiles of other alloy
   34  24.31.20.0                                                              18
                    steel, cold drawn
   35  24.32.10.0   Flat steel products, not further worked than cold rolled,
                                                                               19
                    of a width of < 600 mm, uncoated
                    Flat rolled steel products, not further worked than cold
   36  24.32.20.0                                                              20
                    rolled, of a width of < 600 mm, clad, plated or coated
                    Open sections of non-alloy steel, cold formed or cold
   37  24.33.11.0                                                              21
                    folded
   38  24.33.20.0   Ribbed sheets of non-alloy steel                           22
   39  24.34.11.0   Cold drawn wire of non-alloy steel                         23
                    Unwrought silver or in semi-manufactured form or in
   40  24.41.10.0                                                              24
                    powder form
                    Unwrought gold or in semi-manufactured form or in
                    powder form, excluding investment gold within the
   41 ex 24.41.20.0                                                            25
                    meaning of Article 121 of the Act on goods and services
                    tax, subject to item 43
EN                                        3                                       EN
 ---pagebreak---                       Unwrought platinum or in semi-manufactured form or
   42    24.41.30.0                                                             26
                      in powder form
      irrespective of
                      Investment gold within the meaning of Article 121 of
   43   the PKWiU                                                               27
                      the Act on goods and services tax
          symbol
                      Base metals or silver, plated with gold, not further
                      worked than in semi-manufactured form - exclusively
   44  ex 24.41.40.0                                                            28
                      silver, gold plated, not further worked than in semi-
                      manufactured form
                      Base metals plated with silver and base metals, silver or
                      gold, plated with platinum, not further worked than in
   45  ex 24.41.50.0  semi-manufactured form – exclusively gold and silver,     29
                      platinum pleted, not further worked than in semi-
                      manufactured form
   46    24.42.11.0   Unwrought aluminium                                       30
   47    24.43.11.0   Unwrought lead                                            31
   48    24.43.12.0   Unwrought zinc                                            32
   49    24.43.13.0   Unwrought tin                                             33
                      Copper, unrefined; copper anodes for electrolytic
   50    24.44.12.0                                                             34
                      refining
                      Refined copper and copper alloys, unwrought; master
   51    24.44.13.0                                                             35
                      alloys of copper
   52    24.44.21.0   Powders and flakes of copper and its alloys               36
                      Flat bars, rods, sections and wire rod, of copper and its
   53    24.44.22.0                                                             37
                      alloys
   54    24.44.23.0   Wires of copper and its alloys                            38
   55    24.45.11.0   Unwrought nickel                                          39
                      Other non-ferrous metals and products made of the
                      same; cermets; ashes and residues containing metals and
   56  ex 24.45.30.0                                                            40
                      metal compounds — exclusively non-precious metal
                      waste and scrap
EN                                         4                                       EN
 ---pagebreak---                     Other structures and parts of structures; plates, rods,
   57 ex 25.11.23.0 angles, shapes and the like, of iron, steel or aluminium      66
                    — exclusively of steel
                    Cloth, grills, netting and fencing, of iron, steel or copper
   58 ex 25.93.13.0 wire; expanded metal, of iron, steel or copper —              67
                    exclusively of steel
   59 ex 26.11.30.0 Electronic integrated circuits — exclusively processors       41
         26.20.1    Computers and other automatic data processing                136
   60
                    machines and parts and accessories therefor                   42
   61 ex 26.20.21.0 Memory units — exclusively hard drives (HDDs)                 74
   62 ex 26.20.22.0 Solid state storage devices — exclusively SSDs                75
                    Cellular phones or other wireless networks —
   63 ex 26.30.22.0                                                               43
                    exclusively mobile phones, including smartphones
                    Television receivers, whether or not combined with
   64  26.40.20.0   radio-broadcast receivers or sound or video recording or     135
                    reproduction apparatus
                    Video game consoles (such as those used with a
                    television set or a stand-alone screen) and other gaming
   65 ex 26.40.60.0                                                               44
                    or game of chance apparatus with electronic display -
                    excluding parts and accessories
                                                                                  76
   66  26.70.13.0   Digital cameras and digital camcorders
                                                                                 134
   67    27.20.2    Electric accumulators and parts thereof                      138
                    Parts for spark-ignition internal combustion engines,
   68  28.11.41.0                                                                139
                    excluding parts for aircraft engines
                    Parts and accessories for office machines – exclusively
      ex 28.23.22.0 ink cartridges and print heads for printers for automatic
   69                                                                             77
                    data-processing machines, toners with print head for
                    printers for automatic data processing machines
                    Ignition cable harnesses and other wiring sets of a kind
   70 ex 29.31.10.0 used in vehicles, aircraft or watercraft – exclusively       140
                    ignition cable harnesses and other wiring sets of a kind
EN                                        5                                          EN
 ---pagebreak---                     used in vehicles
                    Sparking plugs; ignition magnetos; magneto-dynamos;
   71  29.31.21.0                                                             141
                    magnetic flywheels; distributors; ignition coils
   72  29.31.22.0   Starter motors and dual purpose starter-generators; other
                                                                              142
                    generators and other equipment for combustion engines
                    Electrical signalling equipment, windscreen, defrosters
   73  29.31.23.0                                                             143
                    and demisters for motor vehicles
   74  29.31.30.0   Parts of other electrical equipment for motor vehicles    144
                    Safety seat belts, airbags and parts and accessories of
   75  29.32.20.0                                                             145
                    bodies
                    Parts and accessories for motor vehicles n.e.c.,
   76  29.32.30.0                                                             146
                    excluding motorcycles
   77  30.91.20.0   Parts and accessories of motorcycles and side-cars        137
                    Jewellery and other jewellery as well as parts thereof,
                    made of precious metal or metal plated with precious
                    metal - exclusively parts of jewellery and parts of other
   78 ex 32.12.13.0                                                            45
                    gold, silver and platinum jewellery, i.e. unfinished or
                    incomplete jewellery and distinct parts of jewellery,
                    including covered or plated with precious metal
                    Used vehicles, computers, televisions and other devices
   79  38.11.49.0                                                              46
                    intended for scrapping
   80  38.11.51.0   Glass waste                                                47
   81  38.11.52.0   Paper and paperboard waste                                 48
   82  38.11.54.0   Other rubber waste                                         49
   83  38.11.55.0   Plastic waste                                              50
   84  38.11.58.0   Metal-containing waste other than hazardous waste          51
   85  38.12.26.0   Hazardous metal waste                                      52
                    Waste and defective electric cells and accumulators;
   86   38.12.27    spent galvanic cells and batteries and electric            53
                    accumulators
EN                                        6                                       EN
 ---pagebreak---     87     38.32.2     Metal secondary raw materials                             54
    88    38.32.31.0   Secondary raw material of glass                           55
    89    38.32.32.0   Secondary raw material of paper and paperboard            56
    90    38.32.33.0   Secondary raw material of plastic                         57
    91    38.32.34.0   Secondary raw material of rubber                          58
                       Motor spirit, diesel oil, fuel gas — within the meaning
    92                                                                           68
                       of the provisions on excise duty
                       Heating oil and lubricating oil — within the meaning of
    93                                                                           69
                       the provisions on excise duty
                       Operating system software packages — exclusively
    94  ex 58.29.11.0                                                            78
                       SSD
    95  ex 58.29.29.0  Other software packages — exclusively SSDs                79
                       Other videos and video recordings on disks, magnetic
    96  ex 59.11.23.0                                                            80
                       tapes and similar media — exclusively SSDs
       irrespective of GHG emission allowance transfer services referred to in
    97   the PKWiU     the Act of 12 June 2015 on Greenhouse Gas Emission        81
           symbol      Trading Scheme (Official Journal of 2021 item 332)
           41.00.3     Construction work on residential buildings (works on
    98                 the construction of new buildings, reconstruction or      82
                       renovation of existing buildings)
           41.00.4     Construction work on non-residential buildings (works
    99                 on the construction of new buildings, reconstruction or   83
                       renovation of existing buildings)
                       General construction works involving the construction
   100    42.11.20.0   of motorways, roads, streets and other roads for vehicles 84
                       and pedestrians and the construction of runways
                       General construction works involving the construction
   101    42.12.20.0                                                             85
                       of railways and subways
                       General construction works involving the construction
   102    42.13.20.0                                                             86
                       of bridges and tunnels
EN                                          7                                       EN
 ---pagebreak---                   General construction works involving the construction
   103 42.21.21.0                                                          87
                  of transmission pipelines
                  General construction works involving the construction
   104 42.21.22.0                                                          88
                  of distribution networks, including auxiliary works
                  General construction works involving the construction
                  of irrigation systems (sewers), bus and water lines,
   105 42.21.23.0                                                          89
                  facilities for water treatment and sewage treatment and
                  pump stations
                  Works involving the drilling of wells and water intakes
   106 42.21.24.0                                                          90
                  and installation of septic tanks
                  General construction works involving the construction
   107 42.22.21.0                                                          91
                  of telecommunications and power transmission lines
                  General construction works involving the construction
   108 42.22.22.0                                                          92
                  of telecommunications and power distribution lines
                  General construction works involving the construction
   109 42.22.23.0                                                          93
                  of power plants
                  General construction works involving the construction
   110 42.91.20.0 of wharves, ports, dams, locks and related hydro-        94
                  technical facilities
                  General construction works involving the construction
   111 42.99.21.0                                                          95
                  of production and mining facilities
                  General construction works involving the construction
   112 42.99.22.0                                                          96
                  of stadiums and sports fields
                  General construction works involving the construction
   113 42.99.29.0                                                          97
                  of other civil engineering structures, n.e.c.
   114 43.11.10.0 Works involving demolition of buildings                  98
                  Works involving the preparation of the site for
   115 43.12.11.0                                                          99
                  construction, excluding earthworks
                  Earthworks: digging, ditch digging and earth moving
   116 43.12.12.0                                                         100
                  jobs
                  Works involving the excavation and geological-
   117 43.13.10.0                                                         101
                  engineering drilling
EN                                     8                                      EN
 ---pagebreak---                   Works involving the execution of electrical safety
   118 43.21.10.1                                                         102
                  installations
                  Works involving the implementation of other electrical
   119 43.21.10.2                                                         103
                  installations
                  Works involving the execution of plumbing and
   120 43.22.11.0                                                         104
                  drainage works
                  Works involving the execution of heating, ventilation
   121 43.22.12.0                                                         105
                  and air conditioning systems
   122 43.22.20.0 Works involving the execution of gas installations      106
   123 43.29.11.0 Insulation work                                         107
   124 43.29.12.0 Installation of fencing                                 108
   125 43.29.19.0 Other installation works n.e.c.                         109
   126 43.31.10.0 Plastering works                                        110
   127 43.32.10.0 Installation work for carpentry                         111
                  Works involving the laying the floor and facing the
   128 43.33.10.0                                                         112
                  walls
                  Works involving the laying of terrazzo, marble, granite
   129 43.33.21.0                                                         113
                  or slate on floors and walls
                  Other works involving the laying of floors and walls
   130 43.33.29.0                                                         114
                  (including wallpapering), n.e.c.
   131 43.34.10.0 Painting works                                          115
   132 43.34.20.0 Glass-making works                                      116
   133 43.39.11.0 Works involving the decoration                          117
                  Works involving the execution of other finishing works,
   134 43.39.19.0                                                         118
                  n.e.c.
   135 43.91.11.0 Works involving the construction of roof structures     119
   136 43.91.19.0 Works involving other roofing work                      120
   137 43.99.10.0 Works involving the installation of damp-proof and      121
EN                                     9                                      EN
 ---pagebreak---                      waterproof insulation
                     Works involving the assembly and dismantling of
   138  43.99.20.0                                                              122
                     scaffolding
                     Works involving the construction of foundations,
   139  43.99.30.0                                                              123
                     including pile driving
   140  43.99.40.0   Concrete works                                             124
   141  43.99.50.0   Works involving erection of steel structures               125
                     Works involving the erection of brick and stone
   142  43.99.60.0                                                              126
                     structures
                     Works involving the assembly and erection of
   143  43.99.70.0                                                              127
                     prefabricated structures
                     Works involving the performance of other specialized
   144  43.99.90.0                                                              128
                     works, n.e.c.
                     Trade services of motor vehicle parts and accessories,
   145    45.31.1                                                               147
                     excluding motorcycles
                     Specialised store retail trade services of motor vehicle
   146    45.32.1                                                               148
                     parts and accessories, excluding motorcycles
                     Other retail trade services of parts and accessories of
   147    45.32.2                                                               149
                     motor vehicles, excluding motorcycles
                     Wholesale trade services of motorcycles and related
   148 ex 45.40.10.0 parts and accessories — exclusively sale of parts and      150
                     accessories for motorcycles
                     Specialised store retail trade services of motorcycles and
   149 ex 45.40.20.0 related parts and accessories — exclusively sale of parts  151
                     and accessories for motorcycles
                     Other retail trade services of motorcycles and related
   150 ex 45.40.30.0 parts and accessories — exclusively retail sale of parts   152
                     and accessories for motorcycles
EN                                       10                                         EN