In the Public Information Bulletin on the subject page of the Government Legislation Center, a draft law amending the act on tax on goods, services and certain other laws (the KSeF draft), introducing a mandatory e-invoicing model, was made available on December 1. The mandatory system is expected to take effect on January 1, 2024.
The law has now been submitted for public consultation, which closes on December 23 of this year. Changes to its content can therefore be expected. In order to stay up to date and prepare well for the law's entry into force, it is worth working with a partner who keeps track of all legal changes, advises on the appropriate solution, and updates it on a continuous basis.
It is a good idea to familiarize yourself now with the changes that may occur in order to plan well for the National System of e-Invoices integration or take advantage of the opportunity to implement global data exchange solutions.
Some of the most important proposals in the draft law are outlined below.
For whom will e-invoicing become mandatory?
Mandatory e-invoicing will cover taxpayers who are required under Polish VAT regulations to issue invoices for performing business activities. This includes domestic supplies of goods and services between businesses (B2B), between businesses and public/governament authorities (B2G), and between businesses and consumers (B2C), as well as exports of goods and services and intra-Community supplies of goods. However, the e-invoicing obligation will not be extended to taxpayers without a registered office or permanent place of business in the country, or to entities using special procedures in VAT (for example, taxpayers registered for OSS/IOSS).
Penalties for non-compliance with KSeF
The head of the tax office will be able to impose a fine of up to 100% of the amount of tax shown on a given invoice, and in the case of an invoice with no tax shown - a fine of up to 18.7% of the amount of total receivables shown, but not less than PLN 1,000. The fine for failure to send invoices issued during the failure to KSeF in a timely manner will be at least PLN 500 when:
- the taxpayer did not issue an invoice using KSeF,
- the taxpayer, during the period of KSeF failure, issued an invoice in electronic form inconsistently with the provided template.
It is worth noting that the penalties will be effective only six months after the introduction of KSeF, i.e. from July 1, 2024.
Proposed Corrective Invoice
The bill introduces a new functionality involving the introduction of a Proposed Corrective Invoice, to be issued by the buyer of goods or services to the seller. The Proposed Correcting Invoice is to correct elements from the original invoice(excluding the VAT number). As with a "standard" correction invoice, there would be a need to provide the KSeF number of the corrected invoice. The correction proposal would have no legal effect for the issuer or the purchaser until it is marked with a number identifying this invoice in KSeF. Such a document remains in KSeF with the status "not accepted". After the vendor's acceptance, this document will be assigned a number identifying the correction invoice in KSeF. As soon as the KSeF number identifying the issued corrective e-invoice is assigned, the document will become a full-fledged corrective e-invoice.
KSeF: Abandonment of invoices issued via cash registers
As of January 1, 2024, receipts with a NIP of up to PLN 450 (simplified invoices, issued using a cash register) will not be recognized as e-invoices.
From January 1, 2025, it is also planned to abandon the recognition of standard invoices issued using cash registers as full-fledged invoices. It will be impossible to issue an invoice from a cash register. The way of documenting transactions recorded on cash registers will be adjusted accordingly.
These are just some of the provisions in the draft act. Other provisions and validations relate to, among other things, interruptions in the operation of the KSeF system, potential abuses that may occur in trade, the possibility of issuing RR VAT invoices using KSeF, and rules for marking e-invoices with a QR verification code.
There’s more you should know about e-invoicing in Poland – visit our dedicated website and stay up to date with the new and upcoming regulations.