On August 7th, 2023, the President of the Republic of Poland signed a bill dated June 16, 2023 into law, amending the Act on the Goods and Services Tax and some other acts. This legislation introduces the obligation to use e-Invoices and to utilize the National e-Invoice System (KSeF) from July 1, 2024 onwards. Some entrepreneurs have been granted additional time to implement the National e-Invoice System.
The purpose of these new regulations is to more effectively combat VAT fraud and serve as a tool in the fight against tax avoidance by taxpayers.
Until the end of June 2024, three invoicing methods will remain available:
- Traditional paper invoicing,
- Standard electronic invoicing,
- Electronic invoicing using the KSeF platform.
The choice of invoicing method remains the taxpayer’s decision. Currently, taxpayers have the option to mix various invoicing methods, and there’s no requirement to use just one method for all invoices.
The obligation to issue e-invoices in the National e-Invoice System from July 1, 2024
The VAT Act amendment imposes the obligation to use the National e-Invoice System (KSeF) and e-Invoices for all B2B transactions, i.e., those between businesses, starting from July 1, 2024.
An additional six months to prepare will be granted to taxpayers who:
- Are VAT-exempt,
- Use cash registers for issuing invoices (from 2025, it will no longer be possible to issue invoices using cash registers), and
- Issue simplified invoices (including receipts recognized as simplified invoices).
From July 1 to December 31, 2024, these taxpayers will have the option of voluntarily using structured invoices, except for fiscal receipts recognized as invoices (receipts with the buyer’s TIN up to PLN 450). However, from January 1, 2025, they will be obliged to issue invoices in a structured form.
Penalties for failing to issue a structured invoice in KSeF
From January 2025, taxpayers who don’t comply with the regulations may face financial penalties. The Head of the Tax Office will be authorized to impose monetary penalties on taxpayers up to 100% of the VAT amount shown on the invoice issued outside the National e-Invoice System (KSeF). For invoices without any VAT shown, the monetary penalty will be up to 18.7% of the total amount due on that invoice.
The penalty amount will depend on several factors, such as the severity of the legal breach, the frequency of previous non-compliance, any prior penalties for similar actions, the degree of the party’s involvement in the breach, measures taken by the party to mitigate the effects of the breach, and the amount of benefit gained by the party.
The introduction of the mandatory National e-Invoice System (KSeF) represents an important step in the digitization process of the Polish economy. Therefore, it’s worthwhile to start preparations for its implementation now. Companies that invest time in implementing KSeF earlier will be better prepared for what’s coming, avoiding unnecessary complications and ensuring the smooth running of their business operations and its’ liquidity.
If you have any questions regarding this topic or if you are in need for any additional information – please do not hesitate to contact us:
CUSTOMER RELATIONSHIPS DEPARTMENT
Head of Customer Relationships
Department / Senior Manager