Four recent VAT and e-invoicing updates in Poland

We have set out below a summary of some recent changes or announcements in Poland relating to VAT and e-invoicing.

New version of JPK structure for VAT invoices issued

The Polish Ministry of Finance recently published a new version of the logical structure of the JPK file (SAF-T) for VAT invoices together with guidance. The new JPK_FA(4) applies from April 1, 2022. The structure of JPK_FA (4) includes several significant changes to the structure of JPK_FA (3), including:

• An updated dictionary of EU member states codes has been introduced, including the code XI for Northern Ireland and GB code for Great Britain (due to Brexit)

• An updated dictionary of currency codes has been introduced

• The historic dictionaries of EU country codes and currency codes has been removed

• Reference to the scheme “KodyCechKrajow_v3-0E.xsd” was removed and new “kodSystemowy” introduced

• The introduction of a new system code - JPK_FA (4)

• The identification data node “TIdentyfikatorOsobyNiefizycznej1” has been extended with identification numbers for OSS and IOSS

• A new percentage element has been added for the purpose of OSS and IOSS rate reporting

• Updated descriptions of nodes and elements 

EU Commission approve mandatory e-invoicing under KSeF system

The European Commission, based on the proposal sent to the European Council, has issued a draft derogation decision for approval authorising Poland to implement a mandatory electronic invoicing system from April 1, 2023 until March 31, 2026. The Ministry of Finance confirmed that based on the derogation, it will move forward with implementing “universal electronic invoicing” in Poland using the KSeF e-invoicing platform.

European Commission authorises extension of split payment mechanism

The European Commission also recently authorised Poland to extend the application of its split payment mechanism until February 28, 2025. By way of background, “split payment” is a payment mechanism under which the payment for the net value of the goods or services is made to the supplier’s basic settlement bank account, and the VAT amount is paid to a dedicated VAT bank account (that is automatically created by the bank).

SLIM VAT 3 proposal

Poland recently held a consultation on its “simple, local, and modern” (SLIM) VAT 3 proposal. This is the third package of changes to Polish VAT rules which are intended to simplify VAT compliance for businesses and tackle abuse and fraud. If adopted, the proposal would increase the annual small taxpayer threshold to from EUR 1.2 million to EUR 2.0 million and introduce new exchange rate rules when invoices are corrected. There are also proposed changes relating to intra-community sales where the supplier does not hold the requisite documents and the de-minimis partial exemption VAT recovery rules.

Contact our international indirect tax experts to discuss Polish VAT compliance obligations and how Avalara can help with VAT registration, VAT returns, fiscal representation, and e-invoicing in Poland.