May 26, 2021
Poland proposes optional e-invoicing from 1 October 2021
Based on the proposed Polish value-added tax (VAT) amendment provisions, as of 1 October 2021, it will be possible to issue structured invoices as one of the accepted ways of documenting local transactions. This option is in addition to issuing paper invoices and electronic invoices as allowed under the current rules.
If enacted, structured invoices would be issued and received by taxpayers via the National e-Invoices System. In practice, invoices would be prepared directly in the taxpayer's financial and accounting programs according to the template provided by the Ministry of Finance and would be sent to the e-Invoices System via an application programming interface (API). Using structured invoices would require the agreement of the recipient of the invoice.
It is intended that the proposed option will both support the correctness of VAT settlements and simplify the process of controlling settlements with entrepreneurs, due to the possibility of remote monitoring by the tax authorities of the turnover documented by invoices.
In exchange, taxpayers will have certainty that their invoices are correct from a formal perspective thereby limiting the risk for suppliers of incurring penalties for incorrect invoicing. It will also limit the risk for purchasers of being denied an input VAT deduction based on the fact that the invoices do not meet the formal requirements. Suppliers will also have certainty that their invoices have reached their clients (providing better payments control). There will also be no need to issue duplicates or to archive e-invoices. Issuing and receiving e-invoices will strengthen the positive perception of taxpayers who use them, in terms of reliability and due diligence Where e-invoices are used, it will be possible to apply a shorter period for VAT refunds, reduced from 60 to 40 days.
Under the proposals, the use of structured e-invoices is optional but it is planned that this type of invoice will be obligatory in the future. Even though nothing has been confirmed yet, there are suggestions that e-invoices may be obligatory with effect from 2023. This means that Polish taxpayers will have approximately 18 months to prepare their organizations for another significant change in VAT settlements.
Currently, the draft provisions are subject to a consultation and opinion process. However, companies that would like to use structured e-invoicing should start planning now for how to meet all the necessary requirements (from both the VAT and the IT perspective).
For additional information with respect to this Alert, please contact the following:
EY Doradztwo Podatkowe Krupa sp. k., Warsaw