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Starting a business entails several obligations. One is choosing the correct PKWiU number, which describes the goods or services sold. This matters because it may affect taxation or the requirement to install a cash register. What is PKWiU, how do you choose a number for your business and should it appear on every sales invoice? Read on!
What is PKWiU? What is the Polish Classification of Goods and Services for?
PKWiU, the Polish Classification of Goods and Services, is an extensive catalogue of products and services in the Polish economy.
It is based on other classifications, such as NACE, the EU statistical classification of economic activities, and CPA, the Classification of Products by Activity. It divides goods and services into distinct sections, divisions, groups, classes, categories, subcategories and items. It is therefore highly detailed and seeks to cover the whole Polish economy.
The Polish Classification of Goods and Services was created primarily for statistical purposes, but today is also important for:
- Value added tax (VAT), including preferential rates and exemptions;
- Corporate income tax (CIT);
- Personal income tax (PIT);
- Tax on recorded revenue under the lump-sum regime;
- Taxation under the tax card.
Under the legal framework effective from 1 January 2016, PKWiU 2015 is the applicable classification. Previously PKWiU 2008, PKWiU 2004 and PKWiU 1997 were used.
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Which PKWiU code should you choose, and how?
The Polish Classification of Goods and Services matters for tax as well as statistics. PKWiU is also important for documentation, correct records and accounting. Some codes may trigger additional obligations, such as installing a cash register. The correct choice is therefore crucial to a business's future, taxation, settlements and overall operations.
How do you choose a PKWiU code for your business?
You can find the complete code list in:
- The annex to the current regulation of the Council of Ministers of 4 September 2015 on the Polish Classification of Goods and Services;
- The search tool on the Statistics Poland website (https://klasyfikacje.stat.gov.pl/Pkwiu2015).
Still uncertain after reviewing the list and using the search tool? You can simply ask Statistics Poland which code is right for you.
For this purpose, Statistics Poland provides a form constituting an application for a classification interpretation. Find it at https://lodz.stat.gov.pl/osrodki/osrodek-klasyfikacji-i-nomenklatur-urzedu-statystycznego-w-lodzi/formularz. We encourage you to use it if you have doubts.
Must a PKWiU code appear on a sales invoice?
Given the need to choose the right PKWiU number, many businesses ask whether it must appear on every sales invoice.
However, the rule specifying mandatory invoice elements, Article 106e of the VAT Act, imposes no such requirement.
Thus, although an invoice may include the correct PKWiU number describing the service or goods, it is not mandatory and does not need to be entered on every invoice.
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