Draft regulations on mandatory e-invoicing in Poland

In recent weeks, an amendment to the regulations on mandatory electronic invoicing via the KSeF system, which the Finance Ministry has been working on, was published. Let’s take a look at the regulations on the most relevant issues.

KSeF and the white list of VAT taxpayers

Whether we make an invoice available to a particular taxpayer in KSeF or a manner agreed with the contractor, we will find out from the white list. The list of VAT taxpayers is intended to indicate whether the entity is required to issue e-invoices.

Corrective invoices

For the settlement of in-minus invoices issued as e-invoices, the date of issue (for the seller) and the date of receipt (for the recipient) will be relevant. It won’t be necessary to determine when the reconciliation and fulfillment of the adjustment conditions occurred nor to document them additionally.

It’s worth noting, however, that regarding adjustments issued traditionally out of the KSeF (in electronic or paper form), the previous methods of recognizing adjustments will apply, i.e., those in effect from 2021.

It was announced earlier that only adjustments related to structured invoices can be issued under KSeF. It’s mandatory to indicate the KSeF number of the corrected invoice. On the other hand, as of January 1, 2024, it’s planned that all adjustments will be issued in KSeF, including those relating to invoices issued outside KSeF, i.e., sent until the end of 2023. Then the KSeF number of the adjusted invoice won’t be mandatory.

A new feature will be the possibility for the buyer to issue a proposal for an adjusted invoice. In KSeF it will receive a separate system number. The proposal can be accepted by the issuer, making it a legitimate correction invoice.

Payments for e-invoice

It’s worth noting the announced changes to payments. For transfers made both by the standard method and under the split payment mechanism, it’ll be necessary to provide the KSeF invoice number (or a collective identifier in the case of a larger number of invoices issued to a single recipient). It involves adapting the configuration in the SAP system to the new requirements.

In addition, the draft law regulates other significant issues.

Obligation to use the National e-Invoicing System

The obligation to use e-invoices is also expected to apply to foreign entities with a permanent place of business activity in Poland. Thus, a foreign taxpayer who is registered in Poland for VAT purposes won’t be required to provide invoices to KSeF. Entities based outside of Poland with no PPoBA in Poland may voluntarily issue e-invoices.

Issuing invoices outside KSeF

Under the following circumstances, it’ll be possible to issue invoices outside KSeF:

• An emergency situation occurs (then a notice of unavailability of KSeF will be published);
• The issuer of the invoice is a foreign taxpayer without a permanent place of business activity in Poland;
• The invoice issuer uses the following special procedures:
  • Non-EU procedure for certain services,
  • Special procedure for the provision of occasional international carriage of passengers,
  • Special procedure for distance sales of imported goods.

Invoices issued using cash registers and simplified invoices

According to the draft, invoicing using cash registers is to be possible only until the end of 2024. However, the possibility of issuing simplified invoices will be retained in KSeF.

No possibility of issuing an invoice before delivery/service or advance payment

According to the processed regulation, the possibility of issuing invoices 60 days prior to the service is to apply only to activities under Article 19a paragraph 5(4) of the VAT Act (e.g., rent, supply of utilities).

Advance and final invoice in the same month

The draft includes a regulation allowing only a final invoice to be issued if an advance payment was received in the same month and the activity covered by the advance payment was performed. At the same time, this regulation won’t be applied to cases under Article 106 and paragraphs 3-8, so, for example, construction services, rental, or supply of utilities.

Shorter deadline for VAT refunds

With the introduction of mandatory e-invoicing, the deadline is expected to be shortened to 40 days.