The term ‘non-transactional Intra-Community Supply (ICS)’ refers to the movement of own goods from an EU country to the territory of another EU country.
In business practice, non-transactional ICS is usually documented not with an invoice, but with an internal document. In this case, the tax obligation takes place on the 15th day of the month following the month in which the supply took place, or on the date of issuance of a document that is not an invoice but has all the elements of an invoice.
As of July 1, 2024, the mandatory National e-Invoice System (“KSeF”) comes into effect, i.e. the need to issue invoices in structured form using the said system. The premise of the KSeF program was its neutrality for the taxpayer, with the ultimate goal of minimal interference with workflow processes and not changing the invoicing rules in the existing law. This assumption was illusory from the beginning in the context of implementing KSeF in an organization, and new tax ruling on KSeF confirms the unfavorable broad obligation to issue structured invoices over and above the existing business practice in the context of moving own goods.
In a tax ruling dated December 21, 2023, ref. 0114-KDIP1-2.4012.484.2023.2.GK, the Director of the National Revenue Administration Information Center held that the movement of own goods is a type of intra-Community supply of goods and is subject to the obligation to invoice, and therefore to invoice in the KSeF system.
As indicated in the ruling: a special case of intra-Community supply of goods is the movement of the taxpayer’s own goods from the country to a member state other than Poland.
This ruling is a part of a certain line of tax authorities’ jurisprudence. However, in practice, issuing an invoice in connection with a non-transactional ICS does not happen often, and this issue is still the subject of controversy.
The director of the National Revenue Administration Information Center took the position that in case of having a fixed establishment in another country, there are two separate taxpayers, therefore invoices should be issued. And so, on the grounds of KSeF regulations, invoices should be issued with the use of this system.
Therefore, as of July 1, 2024, along with the entry into force of KSeF, we encourage you to review your transactions for the presence of non-transactional ICS. And, if you conduct such movements, to adapt your invoicing process to the requirements of KSeF.
Adjusting to KSeF requirements is not that easy, therefore we encourage you to take advantage of our tax consulting services.
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