Digitization of taxes in Poland – a utopian vision or the near future?

The digitization of taxes is an important step towards modernizing and tightening the tax system in Poland. With advances in technology and the growing demand for more efficient management of public finances, we are facing a revolution that brings challenges and, above all, many benefits.

For accountants, the digitalisation of taxes means a paradigm shift in bookkeeping and tax settlements. Traditional methods of working with paper documents are giving way to advanced IT systems that enable faster, more precise and less time-consuming management of company finances.

However, the most important benefits are on the side of the Ministry of Finance. First and foremost, the changes enable faster access to data, which means the possibility of ongoing control over the financial condition of companies and more effective enforcement of tax regulations. Electronic settlements and invoices also reduce the risk of human error and tax fraud, which translates into increased budget revenues. In addition, the digitalisation of taxes allows for improved cooperation between the administration and taxpayers, which can increase trust in the tax system and improve relations between tax authorities and entrepreneurs.

Jednolity Plik Kontrolny (JPK) – Standard Audit File

The digitisation of taxes in Poland began with the adoption of a strategy for the computerisation of public administration. One of the key moments was the introduction of the Standard Audit File (JPK) in 2016.

The JPK was the first digital tool to revolutionise the way businesses submit data on their activities to the tax authorities. Initially, it only covered VAT-related data, but over time the scope of JPK has been extended to include other areas such as accounts, sales, purchases and payroll.

The introduction of JPK was a response to the need to increase transparency, efficiency and fairness in the tax system. Thanks to this tool, tax authorities gained the possibility to monitor taxpayers’ business activities on an ongoing basis and to react quickly to possible irregularities or attempts at tax evasion.

Clearing House Information and Communication System (STIR)

The Clearing House Information and Communication System (STIR) is one of the key tools of the digital transformation in the tax area in Poland. Since mid-January 2018, the rules of the system have been regulated by the STIR Act of 24 November 2017. STIR is crucial in the fight against tax crime, VAT extortion and money laundering.

STIR mediates the exchange of electronic information between the tax authorities and financial institutions such as banks and SKOKs. The system automatically analyses the financial data of companies, determining the level of the risk index for individual entities. Thanks to the transmission of daily transaction statements by financial institutions, STIR continuously monitors company accounts, typing entities for tax control or fiscal penal proceedings.

Not only does STIR make it possible to detect financial irregularities, but it also acts promptly to respond to suspected fiscal offences. Banks have the ability to block a company’s account for up to 72 hours, and in the case of suspected irregularities, and at the request of the head of KAS, for up to three months.

Krajowy System e-Faktur (KSeF) – National e-Invoicing System

Another important step in the digitalisation of taxes in Poland was to be the mandatory introduction of the National e-Invoicing System (KSeF). KSeF is one of the main elements in the fight against tax fraud and the improvement of transparency in business transactions. Thanks to the electronic posting of structured invoices, the tax authorities have faster and more complete access to transaction data, which enables more effective tax control and the elimination of irregularities in settlements.

Taxpayers can voluntarily use the National e-Invoicing System as early as 1 January 2022. After audits and many consultations, on 26 April 2024, the Minister of Finance postponed the deadline for the mandatory implementation of the KSeF. As a result, according to the latest findings, the system will enter in two stages:

• 1 February 2026 for entrepreneurs with sales exceeding PLN 200 million,
• 1 April 2026 for all other entrepreneurs.

The introduction of KSeF requires businesses to adapt to new accounting procedures and to invest in appropriate software and IT tools.

JPK_CIT – what do we already know?

In the shadow of KSeF, the machinery for the introduction of the mandatory JPK_CIT, which includes JPK_KR_PD (ledgers and income tax) and JPK_ST (fixed assets), is in motion. JPK_CIT has been introduced under the Polish Order as a new format for the electronic transmission of ledger data directly to the tax authorities.

It will be necessary to supplement the data with the counterparty’s tax identification number, if one has been assigned, and the invoice identification number in the National e-Invoice System, if one has been assigned prior to the transmission of the ledger. In addition, tags identifying ledger accounts have been introduced to facilitate identification and improve control. Taxpayers will also be required to include data confirming the acquisition, creation or deletion of a fixed or intangible asset, including the number of the document confirming the acquisition and the type of evidence. The new regulations also take into account differences in obligations depending on the type of transaction, e.g. banks, insurance companies and telecommunications companies may be exempted from certain obligations.

It is worth noting that the regulation is expected to enter into force on 1 January 2025. The draft also provides for transitional periods during which certain obligations may be relaxed for selected taxpayers.

Digitisation of taxes – why prepare in advance?

It is worth preparing in advance for the changes proposed by the Ministry of Finance regarding the digitisation of taxes for several important reasons.

• Firstly, preparing in advance allows companies to avoid sudden problems in adapting to the new requirements. Implementing new systems and procedures can take time and financial investment, so acting earlier can prevent delays in the adaptation process.
• Secondly, preparing earlier enables companies to better plan their human and financial resources. Starting the adaptation process early gives companies more time to train staff and possibly invest in the necessary technology and software.
• Thirdly, earlier preparation allows companies to avoid the possible hassle of implementing new solutions incorrectly. By giving themselves enough time to test and adapt to the changes, companies can minimise the risk of errors and complications in the implementation process.
• Fourthly, preparing in advance allows companies to remain competitive in the market. Proactive action on tax digitalisation can make a company ready for the challenges of new legal and tax requirements, which can bring a competitive advantage over companies that choose to delay the adaptation process.

Summary

In summary, despite some controversy and discussion, the entirety of the above-described changes represents an important step towards modernising the tax and accounting system in Poland, and the tax digitalisation process itself has undoubtedly gained momentum. The introduction of systems such as JPK, KSeF or the latest JPK_CIT shows that the country is successfully moving towards modern solutions in the field of tax and accounting, which contributes to the streamlining of economic processes and the fight against unfair tax practices.

Companies need to invest in new technologies and adapt their processes to the new requirements. To support organisations in the changes that the Ministry of Finance is planning, Apollogic experts are ready to implement the appropriate tools in your company, especially if you use SAP-based systems.