It is already known that most entrepreneurs will be obliged to issue invoices in the National e-Invoice System (KSeF) from 1 July 2024. Only entrepreneurs benefiting from the subjective or objective exemption have this deadline postponed until 1 January 2025.
The purpose of introducing the KSeF is, among other things, to further reduce the VAT gap. For several years now, legislators have been introducing further tools aimed at closing it. For example, the tax system already includes the requirement to submit Standard Audit Files (SAF-T), the split payment mechanism, the possibility of temporarily blocking a bank account, and the taxation of transactions that do not produce tax consequences (the tax avoidance clause – GAAR).
The National e-Invoice System joins these tools. When an invoice is issued in the system, it is first made available to the tax authorities. Only then is it sent to the customer. According to the Ministry of Finance, the entire process will take place in real time, meaning the invoice should reach the buyer within minutes.
However, does the introduction of the KSeF merely add further obligations to entrepreneurs and constitute a further extension of the powers of tax authorities?
An undoubted benefit of issuing invoices in the system is the time it takes to deliver them to the buyer. Shortening the invoice delivery time also means shortening the time it takes to receive payment. If the invoice is to be paid within seven days of receipt, and delivery by post, for example, takes five business days (plus Saturday and Sunday), the seller may wait up to 14 days to receive payment.
Delivery of an invoice issued through the National Tax Administration (KSeF) occurs the same day, shortening the above deadline to 7 days. The invoice recipient cannot refuse to collect the invoice, unlike, for example, when delivered by post or email. It is considered delivered when an identification number is assigned. Therefore, it is impossible for the recipient to fail to receive the notification or fail to send an email acknowledgment of receipt. This will reduce the need for businesses to finance their ongoing operations with credit or loans, improving their financial liquidity.
An undeniable advantage of implementing an electronic system is document archiving. The KSeF will store invoices for 10 years. Firstly, businesses will no longer incur document storage costs. Secondly, the problem of "missing" invoices will be eliminated. Because invoices will be electronic, they will be accessible to businesses from anywhere.
Implementing KSeF may also involve incurring expenses to adapt existing invoicing software to the new requirements. Such expenses should be treated as costs indirectly related to revenues. They can be deducted in the month in which they are incurred. However, if a software license is purchased, it should be included in the intangible assets register and depreciated. In such a case, the expense cannot be recognized as current expenses.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of August 25, 2023
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