Performing transactions that are subject to Polish VAT, taxpayers need to document them in accordance with Polish VAT rules which may often be viewed as quite strict and not adopted to standard settings of international ERP systems.

Key documents issued by transaction parties in Poland are: invoices (also for advance payments), credit / debit notes, corrective invoices, correction notes.

Invoicing

With some exceptions (e.g. B2C sales, down payments related to intra-community supply of goods) taxpayers are currently obliged to issue invoices either in paper or in electronic form (pdf). Changes in invoicing processes will occur after National e-Invoicing System (KSeF) is implemented in Poland.

As a general rule invoices must be issued no later than the 15th day of the month following the month in which goods were delivered or services were provided or prepayment was received. There are some exceptions, i.e. by construction services invoices should be issued within 30 days after services / part of services were completed.

Invoices should not be issued earlier than 60 days before the delivery of goods or the provision of services. This restriction also applies to down payment invoices – they cannot be issued more than 60 days prior to receiving the payment.

Content of invoices issued in Poland:

Below you will find the basic elements that must be included in an invoice to ensure compliance with Polish VAT regulations:

  • date of issuance and sequential number,
  • names and addresses of the supplier and the purchaser,
  • VAT identification number of the supplier and the purchaser,
  • the date of the supply of goods or services, or the date payment was received if it differs from the invoice date,
  • description of goods or services provided,
  • the quantity of goods supplied or the extent of services performed,
  • the net unit price of the good or service,
  • discounts or price reductions not included in the net unit price,
  • the net value of the goods or services,
  • the applicable VAT rate,
  • the total net sales value, broken down by different VAT rates and VAT-exempt sales,
  • the VAT amount from the total net sales value, broken down by the respective VAT rates,
  • the VAT amount expressed in PLN if invoice is issued in a foreign currency,
  • the total amount payable, including VAT.

The above list is not full and in particular cases should be completed by other elements, i.e. ‘MPP’ annotation (please refer to the article Split payment mechanism).

Down payment invoices

Down payment invoice can be issued before or after payment is received.

If a down payment invoice is issued before payment is received it will not differ much from the standard invoice. If a down payment invoice is issued after payment is received it should include:

  • date of issuance and sequential number,
  • names and addresses of the supplier and the purchaser,
  • VAT identification number of the supplier and the purchaser,
  • the date payment was received if it differs from the invoice date,
  • amount of payment received,
  • amount of VAT calculated out of received payment,
  • information related to the order or the contract including the name (type) of the goods or services, the quantity and value of the ordered goods or services excluding VAT, the applicable VAT rate.

As a rule, down payment invoice must be issued no later than the 15th day of the month following the month in which prepayment was received or not earlier than 60 days prior to receiving the payment.

Corrective invoice (credit / debit note)

Understanding the legal obligations and procedural requirements for issuing corrective invoices is essential for all entities engaged in taxable transactions within Poland.

It is not allowed to cancel an invoice and issue a new one if transaction took / will take place but some data are defective (see our article on that topic). The only way for the taxpayer in Poland to correct information included in an invoice already provided to the customer is to issue a corrective invoice. Reasons for issuing corrective invoice are enumerated in Polish VAT Act:

  • the tax base or the amount of tax indicated in the invoice has changed,
  • goods and packaging were returned to the taxpayer ,
  • advance payment or its part was returned to the customer,
  • an error was identified.

The corrective invoice should include:

  • identification of the original invoice being corrected,
  • description of goods or services being corrected,
  • correction of tax base and VAT due if applicable,
  • clear description of the corrections made (other than tax base and VAT due).

Corrective invoice may but does not have to include the phrase "corrective invoice" and/or list of correction reasons.

Even if after some time it appears that a first corrective invoice does not reflect the real course of the transaction, another corrective invoice should be issued. There is no limitation in numbers of corrective invoices issued to the original invoice, they just need to be archive together.

Correction note

While an invoice and corrective invoice is issued by the seller, a correction note is a type of document which can be prepared by the purchaser to correct some mistakes identified in invoices received. The following data can be corrected through a correction note:

  • invoice issue date,
  • VAT number,
  • seller’s or purchases name,
  • postal address,
  • supply date,
  • description of goods or services,
  • quantity of goods or scope of services.

Correction note should include:

  • the phrase ‘Correction note’, sequential number and the date of issuance,
  • names, addresses, and VAT identification numbers of the seller and the buyer,
  • identification of the original invoice,
  • the incorrect and correct information.

Correction note should be accepted by the issuer of the original invoice. In practice however, lack of seller’s acceptance usually does not result in questioning purchaser’s right to deduct VAT from a defective invoice.