Biggest 2023 tax challenge for business in Poland? Mandatory e-invoicing - last call for preparations
In December 2022, the draft law introducing mandatory e-invoicing as of 1 January 2024 was published by the Ministry of Finance. This means that most likely as of that date for most entrepreneurs structured invoices will become the only type of invoice issued in connection with sales.
The obligation to issue e-invoices via the National System of e-Invoices (KSeF) will apply to taxpayers performing activities required to be invoiced according to Polish VAT regulations, who have their registered office or permanent place of business (so-called "fixed establishment") in Poland. Other taxpayers (though not all) will be able to use KSeF on an optional basis.
The new obligation will be linked to financial fines. The fines can be imposed when the taxpayer:
- fails to issue an invoice using KSeF,
- issues an invoice in electronic form during the KSeF failure period that does not comply with the template provided,
- fails to send an invoice to KSeF issued during the failure period on time.
The value of the fine will be up to 100% of the amount of tax shown on that invoice, and in the case of an invoice with no tax shown, up to 18.7% of the amount of the total amount due shown on that invoice. The penalty will be a minimum of PLN 1,000 (approx. EUR 200) - in case the taxpayer did not issue an e-invoice or issued an invoice inconsistent with the template provided, and in case the invoice to KSeF is not sent on time - PLN 500 (approx. EUR 100) minimum.
The provisions on fines are to come into force with a six-month delay - i.e. on 1 July 2024.
We encourage all our clients to start preparations for mandatory e-invoicing as soon as possible. The process of implementation will be lengthy and based on our so-far experience requires significant time to coordinate technical and factual aspects.