Recently Poland parliament has approved an amendment to the Value Added Tax law. This recent amendment requires resident and foreign companies doing business in Poland to replace all invoices with electronic ones until 31 December 2022.
All companies wishing to participate in the e-invoicing system’s testing voluntarily can do that as of October 2021. Starting with January 2022, the e-invoicing system will be optional to resident and foreign businesses. However, starting as of January 2023, e-invoicing will become mandatory for all resident and foreign companies doing business in Poland.
Once the e-invoicing system becomes mandatory, all issued and received invoices will have to be sent by businesses via Polish National Electronic Invoice System (“Krajowy System e-Faktur” (KSeF)).
Despite additional compliance requirements to businesses due to this amendment, some advantages can also be seen:
- Effective prevention and tackle of VAT fraud
- Swift and efficient VAT refund process
- Less manual work to both – businesses and tax administrator
- Standardized invoicing format
- etc.
Poland is not the first country in the EU that has e-invoicing requirements in place. The exact requirements are already applied in Spain, Italy and Hungary. France is also expected to start using e-invoicing as of 2023.
If you have any further questions regarding your business being VAT compliant around the world, we are inviting you to contact our VAT experts team for further help.