Structured Invoice – A Revolution in Invoicing from July 1, 2024!

In recent years, we have been witnessing a series of innovative solutions introduced by the legislator aimed at simplifying VAT settlements for taxpayers and providing tax authorities with tools to facilitate the monitoring of business transactions. One of these solutions is the introduction of the National e-Invoicing System (KSeF), through which taxpayers can already voluntarily issue structured invoices.

Structured invoices are invoices issued by taxpayers via an IT system (KSeF), identified by a number that uniquely identifies the invoice in the system. Currently, receiving structured invoices via KSeF requires the recipient’s acceptance. Starting from July 1, 2024, new regulations will require active VAT-registered taxpayers to issue invoices exclusively using the KSeF system.

Exemptions from the Obligation to Issue Structured Invoices in KSeF

Exempt from the obligation to issue structured invoices will be, among others:

• Taxpayers who do not have a business establishment or a permanent place of business in the country.

• Taxpayers who make supplies of goods or provide services to individuals who are not conducting business (consumers).

Sanctions for Failing to Issue a Structured Invoice in KSeF

If a taxpayer fails to issue a structured invoice using the National e-Invoicing System (KSeF), the tax authority will impose a fine of 100% of the VAT amount shown on the invoice issued outside of KSeF. If the invoice does not show VAT, the fine will be 18.7% of the total amount due on the invoice issued outside KSeF. The regulation concerning sanctions for failure to issue a structured invoice will come into force on January 1, 2025.

VAT Refund in 40 Days

One of the benefits of the introduction of the KSeF is the possibility of a faster VAT refund. According to regulations effective from January 1, 2022, a taxpayer who has only issued structured invoices in a given settlement period can apply for a refund of the excess input VAT over the output VAT within a shortened 40-day period. To be eligible for this 40-day VAT refund, the taxpayer must meet the following conditions:

• The excess input VAT over output VAT carried forward from the previous period does not exceed PLN 3,000.

• For the 12 months immediately preceding the period in which the VAT refund request is made:

  • The taxpayer has been registered as an active VAT taxpayer.

  • The taxpayer has submitted VAT returns (JPK_VAT) for each settlement period.

  • The taxpayer has a settlement account or a personal account at a cooperative savings and credit union, listed on the “white list” of taxpayers.

A 40-day VAT refund also applies if, in addition to structured invoices, the taxpayer has issued:

• Invoices that cannot be issued in a structured format due to a lack of compliance with the structured invoice template provided on the public administration services platform, or

• Simplified invoices in the case of sales recorded using a cash register.

Simplified Rules for Correcting Invoices

With the introduction of the obligation to issue invoices via KSeF, the rules for determining the period in which “in minus” correction invoices should be included will change. Previously, when issuing a correction invoice that reduced the tax base and the VAT due, taxpayers had to analyze the moment of issuance, the agreement, and the fulfillment of the conditions for reducing the tax base, along with the necessary documentation confirming the agreement. In practice, the moment of issuing a correction invoice was not always the same as the moment the conditions for issuing the correction were met.

Starting from July 1, 2024, taxpayers will be able to reduce the tax base and the VAT due in the settlement period in which the structured correction invoice is issued. This simplification will also apply to the buyer, who will be required to reduce the input VAT in the settlement period in which the structured correction invoice is received.

Summary

The introduction of the KSeF system will undoubtedly present a significant challenge for taxpayers. However, there are clear benefits to the new solution. The introduction of a single, widely available system through which structured invoices will be issued and shared will lead to faster receipt of invoices by the buyer and ensure the seller that the invoice has been delivered to the contractor. In our opinion, the introduction of a single standard for electronic invoices will streamline economic transactions and improve the efficiency of business operations.