2026-02-26
Invoice Issued Outside KSeF and Tax-Deductible Costs. Key Position of the Polish tax administration.
Individual tax ruling of 9 January 2026, ref. 0111-KDIB1-3.4010.714.2025.2.JG In an individual tax ruling dated 9 January 2026, the Director of the Polish National Revenue Information (KIS) addressed an issue that has raised significant practical concerns in the context of the implementation of the National e-Invoicing System (KSeF). The key question was whether an expense documented by an invoice issued outside the KSeF-system may be treated as a tax-deductible cost for the purposes of Polish corporate income tax (CIT).
The authority indicated that the mere fact that an invoice was issued outside KSeF does not automatically deprive tax-deductible costs, provided that the substantive requirements under the Polish CIT Act are met in the specific factual circumstances.
- Conditions for recognizing an expense as tax-deductible – Article 15 of the Polish CIT Act
Under Article 15(1) of the Polish CIT Act, tax-deductible costs are expenses incurred in order to generate revenue or to preserve or secure a source of revenue – except for those expressly listed in Article 16(1).
In practice, for an expense to be recognized as tax-deductible, the following substantive and evidentiary conditions must be met jointly:
- there must be a genuine cause-and-effect link between the expense incurred and the revenue (or its source),
- the expense must not fall within the statutory catalogue of exclusions,
- the transaction must be properly documented.
The authority emphasized that the actual nature of the transaction and its connection with revenue-generating activities are of primary importance. A purely formal aspect — such as the technical method of issuing the invoice — does not automatically determine whether the expense is deductible.
- Documentation of costs and the form of the invoice
As a rule, the Polish CIT Act does not contain detailed provisions specifying the exact form in which expenses must be documented. However, pursuant to Article 9(1), taxpayers are required to maintain accounting records in a manner that allows to properly determine:
- taxable income (or loss),
- tax base,
- tax due.
In practice, this means that taxpayers must hold reliable and credible accounting evidence confirming that a specific business transaction has taken place.
The individual tax ruling confirmed that:
- a paper invoice,
- an electronic invoice (e.g. in PDF format),
- a structured invoice,
— may constitute a valid basis for recognizing a tax-deductible expense, even if it was issued outside KSeF. However, provided that it meets formal requirements and reflects a genuine transaction between identifiable parties.
Accordingly, in the context of this ruling, greater weight was attached to the substance and reliability of the document than to the technical channel through which it was issued.
- Practical implications of the ruling
The ruling of 9 January 2026 neither abolishes nor limits the obligations arising from the regulations governing the operation of KSeF. Any failure to comply with e-invoicing requirements may give rise to separate formal consequences.
At the same time, the authority made it clear that the failure to issue an invoice through KSeF does not automatically result in the loss of the right to recognize the related expense as tax-deductible for CIT purposes.
From a practical standpoint, this confirms a fundamental principle applicable in income taxation: the right to deduct a cost is determined by substantive criteria and the genuine nature of the transaction, not solely by technical requirements relating to the form of the document.
In the context of the full rollout of KSeF, this ruling may serve as a relevant interpretative reference for taxpayers and advisors assessing CIT risks related to invoicing compliance.
See other articles
On 11 February, the EU General Court (Case T-689/24) delivered an important judgment in a “Polish case” on the moment of input VAT deduction. The ruling may have far-reaching consequences for Polish businesses and the way VAT is settled in Poland.
Invoice Issued Outside KSeF and Tax-Deductible Costs. Key Position of the Polish tax administration.
Individual tax ruling of 9 January 2026, ref. 0111-KDIB1-3.4010.714.2025.2.JG In an individual tax ruling dated 9 January 2026, the Director of the Polish National Revenue Information (KIS) addressed an issue that has raised significant practical concerns in the context of the implementation of the National e-Invoicing System (KSeF). The key question was whether an expense documented by an invoice issued outside the KSeF-system may be treated as a tax-deductible cost for the purposes of Polish corporate income tax (CIT).
The introduction of the mandatory Polish e-invoicing system (Krajowy System e-Faktur – KSeF) as of 1 February 2026 will significantly change VAT invoicing rules, i.a. transactions involving foreign entities. One of the key factors determining whether mandatory KSeF applies is whether a foreign counterparty has a fixed establishment (FE) in Poland. If it is lacking on the seller’s side, then he may issue and send invoices outside KSeF (e.g. via e-mail, PDF). If the seller is subject to KSeF yet his buyer is not (lacking seat/FE in Poland), then the seller must issue the invoice via KSeF, yet simultaneously send it to his buyer in the old-fashioned way.
The general tax ruling issued by the Polish Minister of Finance and Economy on 27th of November 2025 addresses the issue of land, buildings and structures being deemed as “related to business activity”. It is one of the most significant documents in recent years in the area of property taxation. Its importance goes well beyond a purely technical explanation of statutory provisions. At its core, it touches on a fundamental and long-running dispute between taxpayers and tax authorities: where the line should be drawn between mere ownership of real estate and its use for business purposes.
Even though penalties for issuing invoices outside Poland’s National e-Invoicing System (KSeF) have been deferred until 1 January 2027, the real headache may come sooner.
The Court held that, in certain circumstances, contractual penalties for delays may qualify as tax-deductible in Polish CIT. The case concerned a property developer unable to hand over apartments to clients in time, due to delays caused by the general contractor. The clients charged contractual penalties, which the developer has paid and qualified as tax-deductible costs. The Polish tax authority (KIS) argued that any penalty for non-performance or improper performance is excluded from tax costs under Art. 16(1)(22) of the Polish CIT Act. The Polish Supreme Administrative Court (NSA) disagreed.
CJEU: Is a TP profit true-up a service? Key takeaways from 4 Sep 2025 (C-726/23, Arcomet) The Court held that intra-group payments determined under TNMM (e.g., skimming part of a subsidiary’s operating margin above a threshold) can be deemed as consideration for services and thus fall within VAT—if there is a legal relationship and a direct link between the supply and the consideration.
Is a plot of land with a building scheduled for demolition considered ‘undeveloped land’? Under the Polish VAT Act, the sale of undeveloped land is exempt from VAT as long as it does not have the status of ‘building land’. Otherwise, such sale might be subject to 23% VAT. In contrast, the VAT on a sale of a developed plot of land is determined based on the history of the buildings/structures. In general: older buildings = VAT-exemption. A recurring question, however, is how to classify land where there are buildings or structures in poor condition that are intended to be demolished. Can such a property still be treated as “developed” for VAT purposes? The question might seem irrelevant, yet there is another layer to it. According to Polish tax law, if the sale of immovable property (plot, building) is not subject to VAT at all or is VAT-exempt, the buyer must pay a 2% tax on civil law transactions (Podatek od czynnosci cywilnoprawnych, also known as PCC). Thus, many B2B-sales aim at having the transaction taxed with VAT (deductible) to avoid PCC (non-deductible).
KSeF 2.0 is here – the President of Poland has signed the bill! On August 27, 2025, the President approved amendments to the VAT Act introducing the new version of the National e-Invoicing System (KSeF). This marks one of the most significant tax reforms in recent years – transforming how every Polish company or entrepreneur issues and processes invoices.
Advance invoices issued too early – a key change in Polish VAT practice On 23 July 2025, the Polish tax administration has published (ref. DOP7.8101.28.2025.FMLM) a revision to a ruling issued in 2017 which reshapes the treatment of prematurely issued advance invoices. Previous approach Article 106i(7) of the Polish VAT Act allows most invoices (with limited exceptions) to be issued up to 60 days before supply, performance of a service or receipt of an advance payment. Prior to 2022, the limit was 30 days, whereas before 2014 such an option did not exist at all. Those changes were welcomed by many firms, as some B2B clients (particularly larger companies in the construction sector) requested advance invoices even weeks before contractual payment dates. In other words: for some firms it was/is a “must have”.