As of 1 January 2022, amendment to the VAT-Act came into force which may have significant implications for the conduct of VAT settlements in Poland. The changes primarily concern the new method of invoicing, rules regarding settlement of correcting invoices, rules for issuing primary and correcting invoices.
New invoicing method – structured invoices
From 1 January 2022, the National e-Invoice System, which enables the use of structured invoices, will be operational. We have already informed you about the work on its development on our blog, in the post “Update of e-invoice assumptions“.
A structured invoice is an invoice in XML format, issued using the National e-Invoice System, with an identifying number in the system. In 2022, taxpayers can choose whether to issue paper invoices, electronic invoices in PDF format or perhaps structured invoices.
The Ministry of Finance plans to make the use of a structured invoice mandatory from 2023 onwards. We will monitor this topic and keep you informed.
To issue structured invoices, taxpayers need to update their accounting software or can use the free tools provided by the Ministry of Finance.
If your suppliers have already decided to issue structured invoices, they should obtain consent from you, as the buyer, to receive invoices in this form. You do not have to agree to receive such invoices. Suppliers can send you invoices as before – in pre-agreed paper form or electronically in PDF format.
New rules for correcting invoices
From 1 January 2022, when settling “in minus” invoices, concerning the supply of goods in the territory of the country, the taxpayer must follow new settlement rules.
Under the new rules, in addition to the correction invoice, the seller must also hold documents confirming that the terms of the correction have been agreed. These must show that the purchaser is aware of the situations in which the conditions of the transaction are changed and the amount of tax reduced. The conditions must also be met at the time of the correction.
The new provisions are unclear and it is not clear from them exactly what documents the taxpayer must have in order to establish that the conditions for making the correction have been agreed. According to the tax explanations, the conditions for making the correction may be agreed, i.a., in:
- a contract with the buyer;
- sales regulations
- general terms and conditions of contracts;
- commercial agreements.
If the taxpayer does not obtain any documents conditioning the correction, he may apply a presumption of acceptance of the arrangements and fulfilment of the correction conditions. This can happen, for example, by issuing an invoice “in minus” and making a transfer to the buyer’s bank account.
Due to the vagueness of the regulations in this respect, in practice we recommend first of all to keep all email correspondence with contractors concerning the issuance of “in minus” corrections. This type of correspondence can be helpful, for example, in the event of a possible verification activities by the Tax Office.
Changes in the rules for issuing original and correcting invoices
New regulations have extended the deadline for issuing VAT invoices. An invoice can be issued even 60 days before the delivery of goods, performance of a service or receipt of full or partial payment. The previous legal status provided that an invoice could be issued only 30 days before one of these activities.
As of 1 January 2022, the rules regarding correcting invoices will change. The amount of information that must be included in the content of the document is reduced. From now on, taxpayers may, but do not have to, indicate the words “correction invoice” or “correction” on correction invoices. They also do not have to indicate the reason for the correction or the date of delivery of goods.
The amended law has not only introduced a number of simplifications for taxpayers, but has also created new challenges caused by the implementation of structured invoices. If you need our support, please do not hesitate to contact the tax department of our law firm.
Aleksandra Philips, LL.B., VAT Specialist