The Government Legislation Centre published a new draft of the bill dated 22 February 2023 to amend the Goods and Services Tax Act and certain other acts (“Proposed Law”). The Proposed Law, a product of the legislative processes commenced in the Finance Ministry last year and actively assisted by representatives of business associations and tax advisory industry, provides a framework for implementation of the National E-Invoicing System (KSeF) and so-called structured invoices (e-invoices). The Proposed Law takes into account most of the conclusions and comments raised at the meeting with Finance Ministry’s representatives on 16 February 2023.
Below we discuss the most important provisions that have changed over the previous version of the proposal (draft of 30 Nov 2022):
- New deadlines:
- 1 July 2024 – commencement of obligatory KSeF (general commencement date of the new law);
- 1 January 2025:
- end of invoices issued via cash registers and of cash receipts treated as invoices,
- e-invoices obligatory for entities with VAT exemptions,
- commencement of penalties for issuance of e-invoices outside KSeF in breach of obligation, for issuance of e-invoices not in accordance with required template, and for failure to timely submit invoices issued during KSeF malfunction or in off-line mode.
- KSeF e-invoices not obligatory in the case of:
- business-to-consumer transactions,
- motorway toll, bus, train etc. tickets.
- Proposed Law scraps what was called a “proposed correcting invoice” and also correcting notes – as of 1 Jul 2024 any invoice changes can only be made by issuing correcting invoices.
- The use of off-line mode in invoice issuance has been extended to include also unavailability of KSeF for reasons on the part of the taxable person – e-invoices to be issued offline according to required template and submitted to KSeF on next business day.
- More precise regulations on the use of exchange rates to translate the taxable amount and VAT on e-invoices – you can use the published mid rate applicable on the last business day prior to the issuance date on the invoice (box P_1). This rate can be used on condition the e-invoice is issued via KSeF not later than next day after it is issued through the accounting software (according to the date in box P_1).
- No changes to regulations on invoice issuance before chargeability of tax – e-invoices can still be issued even 60 days prior to the chargeable date.
Note that the Proposed Law continues to impose the e-invoicing obligation on entities with fixed establishments in Poland for VAT purposes. As announced by Finance Ministry representatives, this obligation will be introduced together with measures supporting taxable persons in correctly determining if they have fixed establishments in Poland (plans are to publish official tax guidance or a public tax ruling).
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