Despite many doubts related to the mandatory use of structured invoices under KSeF, the new system will go into effect in Poland on July 1, 2024.
Taxpayers have been facing many challenges since the introduction of the KSeF (voluntary application is possible since January 1, 2022). At first glance, it seems that this only concerned the format of electronic invoices. It quickly turned out that the preparation and introduction of KseF involves an in-depth analysis of internal processes in the taxpayer's organization concerning the issuance and receipt of invoices, communication with contractors, data collection, as well as the involvement of the IT department and employee training.
Moreover, in relation to our clients, entities based in Poland and foreign entities registered in Poland solely for VAT purposes, there are several substantive issues that also require analysis and preparation.
The obligatory use of the KSeF will apply to foreign taxpayers who do not have their registered office in Poland but have a FE in Poland that participates in the supply of goods or the provision of services. Considering the controversy in determining a fixed establishment, the mandatory use of KseF will bring about further concerns.
Becoming acquainted with criteria, which keeps changing over the years during practice by authorities and administrative courts, will allow you to determine the risk of having a FE in Poland and decide on whether to use KSeF (even in a voluntary form).
Transactions outside KSeF
From the point of view of foreign entities registered in Poland solely for VAT purposes which use KSeF (obligatory or optional), it should be considered that not all transactions will be documented in the KSeF system. This applies, for example, to ICA and import transactions.
In addition, in order to correctly complete the JPK-VAT declaration, taxpayers must also consider data from other sources - such as cash registers, sales invoiced to natural persons (consumers) or invoices received from entities that do not use KSeF.
This introduces the requirement to record data from various sources and aggregate them into the JPK-VAT declaration.
KSeF invoice date
Invoicing in the KSeF system means the introduction of additional dates that must be distinguished correctly for the VAT settlement to be correct.
From the VAT point of view, the essential date is the date identified at the time of sending the xml file with the invoice to KSeF. If the system does not reject the invoice, it will be assigned a KSeF number and will enter legal circulation. This date is visible on the UPO document.
However, in the event of a failure of the KSeF system or when converting amounts expressed in a foreign currency, the date of invoice issuance completed by the taxpayer in the process of preparing data for a structured invoice will be relevant for VAT.
The uniform invoice structure and platform proposed by the Ministry of Finance provides several significant benefits (immediate and long-term) for entities obliged to use them.
Efficiency and time saving
Integration of the accounting system with the KSeF system allows for easy and quick issuing of invoices in accordance with one format while eliminating errors and the risk of "losing" the invoice. It increases the security of data transmission and facilitates archiving and storage for the period required by tax regulations.
An important aspect is also increased efficiency in the process of issuing and receiving invoices and the lack of additional costs related to printing, sending, and storing paper invoices.
The obligation to issue structured invoices also means exemption from the obligation to submit JPK_FA files at the request of the office.
Streamlining accounting processes
As part of preparation for the use of KSeF, the taxpayer should review the currently used processes for issuing and receiving invoices within their organization. The fundamental aspect is ensuring access to all data required in the structured invoice scheme. Any data gaps may lead to updates in purchase and sale processes. Of course, this will require the introduction of IT solutions or an extension of the functionality of existing tools.
Shortening the deadline for a VAT refund
The basic deadline for a VAT refund is 60 days from the date of submission of the JPK_VAT declaration. Shortening this period to 40 days will have a positive impact on the taxpayer's financial liquidity. However, this will be possible after meeting the conditions listed in Art. 87 section 5b of the VAT Act, i.e.:
- all sales invoices are issued via KSeF, i.e., they are structured invoices
- sales invoices document transactions such as:
- domestic and foreign sales of goods and services
- receipt of all or part of the payment, i.e., documented with an advance invoice
- the surplus of input VAT to be refunded within 40 days resulting from JPK_V7 for the period in which the taxpayer applies for a faster VAT refund does not exceed PLN 3,000,
- the surplus of input VAT resulting from JPK_V7 for the previous period, which was transferred to the current JPK_V7, does not exceed PLN 3,000,
- for at least 12 consecutive months preceding the period for which the taxpayer submits JPK_V7, in which the entrepreneur applies for a faster VAT refund, the taxpayer:
- is an active VAT payer,
- submitted the JPK_V7 file for each period,
- has a bank account or SKOK number that appears on the whitelist of