Poland: Update on mandatory e-invoicing, proposed extension of 0% VAT rate to support Ukraine

Indirect tax developments in Poland

Proposed extension of 0% VAT rate to support Ukraine

Indirect tax developments in Poland concern the following:

  • The European Council on 17 June 2022 adopted an implementing decision that essentially approved Poland’s request to derogate from Articles 218 and 232 of the Council Directive 2006/112/EC on the common system of value added tax (VAT). The EC changed the date that mandatory electronic invoicing (e-invoicing) would start to apply. Initially, this requirement was to be implemented in the second quarter (Q2) of 2023. However, it will not take effect earlier than 1 January 2024. Accordingly, effective 1 January 2022, taxpayers may issue structured invoices (e-invoices) on a voluntary basis, using Poland’s e-invoicing system (Krajowy System e-Faktur—KseF). Electronic invoices issued via the KSeF system will have the same value as electronic and paper invoices. Read a June 2022 report prepared by the KPMG member firm in Poland
  • A June 2022 draft decree was issued by the Minister of Finance to amend the rules on goods and services subject to reduced VAT rates and to provide the conditions for applying reduced VAT rates. Because of Russia’s ongoing invasion of Ukraine, the draft decree would extend—through 31 December 2022—the application of the VAT rate of 0% on all types of services that may prove necessary to support victims in the conflict, and with regard to certain healthcare activities and functions of local governmental units. Read a June 2022 report prepared by the KPMG member firm in Poland

 

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