The ViDA package adopted by the European Parliament – what does it mean for Polish companies?

The digital reform of the VAT system in the European Union is inevitable. A package of changes to the EU VAT directive called “VAT in Digital Age” (ViDA) has been adopted by the European Parliament at its meeting on February 12^th this year. This is the next stage in the legislative process, after the agreement reached by the EU Economic and Financial Affairs Council ECOFIN on November 5^th, 2024. The next steps include the formal adoption of the changes by the EU Council, which should take place in the coming weeks.

Three areas of change – since when?

The ViDA package includes three components (called pillars) that will be implemented gradually in the years 2028-2035, what is intended to enable a smooth adaptation process for both Member States’ tax administrations and taxpayers.

Pillar 1. Single VAT Registration – enabling the simplification of the obligations of some taxpayers operating in many Member States, including the extension of the One Stop Shop procedure and the abolition of the call-off stock procedure

• Date of entry into force: July 1^st, 2028

Pillar 2. Regulation of taxation of certain services provided using digital platforms (Platform Economy) – accepting the fiction of purchasing and providing services by platforms intermediating in the provision of road passenger transport services and short-term accommodation

• Date of entry into force: no earlier than July 1^st, 2028 (option for Member States), no later than January 1^st, 2030.

Pillar 3. New rules for real-time reporting on intra-Community transactions (the system will replace recapitulative statements) and the use of structured electronic invoices (Digital Reporting Requirements)

• Date of entry into force: July 1^st, 2030 (mandatory e-invoices in the European standard for intra-Community transactions of goods and services, elimination of the current VIES, new reporting of intra-Community transactions, elimination of recapitulative statements, etc.); January 1^st, 2035 (end of the transition period for countries that have received consent in due time to introduce mandatory e-invoicing, mandatory e-invoices in the European standard also for domestic transactions).

What does this mean for Polish companies?

Of particular interest to all Polish taxpayers are the changes covered by Pillar 3, especially in the context of the planned introduction from February 2026 of mandatory e-invoices issued in the central National e-Invoice System (KSeF) in xml format (with a possible second deadline from April 2026 for smaller companies). However, according to the ViDA changes, electronic invoices will have to comply with the European standard, what is to ensure interoperability of systems in various Member States. The assumption of the ViDA package is to introduce a coherent and uniform invoicing method throughout the EU.

This will be a challenge for Polish legislators as the Polish structured invoice issued in KSeF is not compatible with the European e-invoice standard. The creators of the system should, when preparing the system, provide for technological solutions that will ensure the conversion of an invoice in the form of an xml scheme to the EU standard from July 2030. We can only hope that this challenge will not be transferred to taxpayers and in a few years they will not have to make further changes to the company’s systems to adapt the invoice format to the EU standard.

Preparatory works for KSeF should be started earlier

Meanwhile, the legislative process regarding changes to the mandatory KSeF is taking longer, and that blocks taxpayers from starting preparatory work or unwinding it if it was already carried out before the deadline was extended. The original plans to complete this process in the first quarter of 2025 have become obsolete. The second quarter of the current year is now more likely, which in practice means only half a year to prepare the company for KSeF. This is not much time, considering the degree of complexity and comprehensiveness of the necessary changes, not only in terms of IT, but also in internal processes, procedures and contracts. However, it is possible to start analysis of current processes and gaps in the systems in terms of necessary modifications earlier, as the basic assumptions of KSeF are known and should not change, and modifications in the company’s systems are time-consuming (e.g. if some invoices are issued manually outside the system, or it is not possible to issue a corrective invoice without changing the value, and such a need will arise in connection with the liquidation of corrective notes).