European Commission permits Poland to deviate from VAT Directive to impose obligatory B2B e-invoicing 1 April 2023 – 3 months later than original Jan plan
Poland has been given by the EC a temporary departure from Articles 218 and 232 of the VAT Directive to be able to imposing mandatory electronic invoicing on certain B2B transactions. This clears the way for Poland to switch from its current voluntary electronic invoicing from 1 April 2023. This will only apply to businesses resident in Poland.
It is proposed to authorise the derogation as from 1 April 2023 until 31 March 2026. This April 2023 start is three months later than the Polish plan.
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Poland estimates that it will contribute to an increase in budget revenues of approximately PLN 1,8 billion (approx €390 million), which is around 7% of tis VAT Gap. per year. These additional revenues will be obtained from the reduction of missing trader-type VAT fraud as well as from the reduction of unjustified VAT refunds. Poland’s latest VAT Gap estimate was €5.4 billion per annum.
Krajowy System e-Fakturr (KseF) structured e-invoices
The new invoices, faktura ustrukturyzowana, will be reported to a new national e-invoice system, Krajowy System e-Fakturr (KseF) by either adapted accounting software or through a government reporting portal. This would be via and an Application Programming Interface (API). Alternatively, they may outsource the process to outside certified agents.
The Polish Ministry of Finance will offer several tools free of charge: the online app ‘e-Mikrofirma’, accessible via smartphone and a web form to any taxpayer logged on to e-Urząd (e-Office).
The invoice details must follow the existing Polish rules, but includes additional data, including:
- Terms of payment
- Any settlement details
- Payment of any related customs
The e-invoice will then be given a unique ID number following basic validation checks. The e-invoice will only become valid VAT invoices when the customer has accepted them. If a customer refuses the invoice alternative delivery will have to negotiated. There are a number of different ways to obtain the electronic certification.
The Polish version of the OECD’s Standard Audit File for Tax (SAF-T) was introduced in 2016. Poland SAF-T replaced VAT return from 1 October 2020.
EU proposals to harmonise e-invoicing
EU VAT in the Digital Age reforms include a channel for harmonised Digital Reporting Requirements (DRR) and Continuous Transaction Controls (CTC) by EU states. This grew from the 2020 EU Tax Action Plan proposals for a fairer and more efficient EU tax regime.