VAT Groups with More Specific Regulations Under KSeF in Poland

The Minister of Finance, on the basis of the draft regulation amending the regulation on the use of KSeF, published on August 30, 2022, intends to respond to the demands of local governments as to the need to adapt this solution to the specifics of local government units. The draft also takes into account new legal regulations, according to which, from January 1, 2023, a new type of VAT taxpayer will function, namely a VAT group.

Current VAT situation

It is worth pointing out that, in accordance with the provisions of Polish tax law, the municipality and its organizational units (schools, social assistance units, etc.) settle VAT, as a single taxpayer, using a common NIP (taxpayer identification number). A similar situation applies to VAT groups - hitherto separate taxpayers of goods and services tax will be able to create a new taxpayer, which will use a new NIP for VAT settlements.

At the moment, the KSeF does not take into account the situation where multiple units issue invoices under one NIP. As a result, a situation arises where one unit has access to the invoices of another unit.

Upcoming KSeF regulations

The draft provides for the possibility of granting privileges of a limited nature to an internal unit of a local government unit and a person representing the internal unit. The same will apply for  VAT groups. As a consequence, individual members of the group will not have access to the invoices of other entities forming the group.

Currently, the use of the KSeF system is voluntary. Taxpayers therefore have an opportunity to prepare for the big changes coming, which will involve using the system for e-invoicing on a mandatory basis in Poland.

To learn more about the National System of e-Invoices in Poland visit our page and check our latest webinar.