Advance and final invoices in Poland: VAT and KSeF

An advance invoice records payment received before delivery or performance. A final invoice settles the completed transaction after deducting the amounts and VAT already covered by advance invoices. If advance invoices cover 100% of the price, another final invoice is generally unnecessary. Connect the order, payments and documents so that one sale is not counted twice.

The rules were checked on 13 November 2026. This guide covers standard domestic B2B transactions subject to Polish VAT. Cross-border supplies, special VAT schemes and transactions with special tax points need separate analysis.

How do pro forma, advance and final invoices differ?

A pro forma is a commercial payment request, not a VAT invoice. It can give your customer the information needed to pay, but it does not replace the invoice documenting an advance received. Do not post both the pro forma and the actual invoice as separate sales.

An advance invoice relates to an identifiable future supply. It should establish what the payment covers, how much of the order has been paid and the VAT included in that amount. A final invoice reconciles the completed order with the advances already documented.

When does VAT arise and when is the invoice due?

For a standard advance, Article 19a(8) of the Polish VAT Act generally creates the VAT obligation when the payment is received, for the amount received. A later final invoice does not allow you to postpone all VAT until the work is finished.

Under Article 106i(2), the invoice documenting such a payment is generally due by the 15th day of the month following receipt. The invoicing deadline and the VAT tax point are different concepts. Establish when the money actually arrived, rather than relying only on the date your customer instructed the transfer.

A payment described as an “advance” does not always follow this rule. A refundable security deposit, rent payment or intra-Community supply can require different treatment. Identify the transaction and the payment’s purpose before selecting an invoice type in your software.

What if payment and performance fall in the same month?

Article 106b(1a) allows you to omit a separate advance invoice when payment is received in the same month as delivery or performance. The simplification has statutory exclusions, including cases with the special deadlines in Article 106i(3) to (8).

For example, a standard service partly prepaid on 5 November and completed on 20 November may qualify. Keep the prepayment date and amount, and show the correct outstanding balance. Using one invoice does not mean ignoring the earlier bank transfer or presenting an unpaid amount as already settled.

If completion moves to December, the same-month assumption no longer holds. Check unfinished orders before the advance invoicing deadline. A planned completion date in a sales spreadsheet must not replace the date the work was actually performed.

How do you calculate the advance and final amounts?

Assume a company provides a service for PLN 10,000 net, subject to 23% VAT. The total order is PLN 12,300 gross. The customer pays 40%, or PLN 4,920 gross, in November, and the service is completed in December. This example excludes special tax rules and later corrections.

The VAT included in the advance is PLN 4,920 × 23 / 123 = PLN 920. Do not add another 23% to PLN 4,920 if that is the agreed gross payment. Under Article 106f(3), the final invoice accounts for the order and deducts the previous advance and its VAT.

The reconciliation check is straightforward: PLN 920 plus PLN 1,380 equals the order’s total VAT of PLN 2,300. If your records show PLN 920 and another PLN 2,300 as output VAT, investigate the invoice links before posting them. The remaining PLN 7,380 receivable is also not evidence that the customer has paid it.

Is a final invoice needed after a 100% prepayment?

When an advance invoice covers the entire amount payable, another final invoice is generally not required. The Ministry of Finance KSeF manual, part II, sections 2.6 to 2.8 explains this treatment. You still need appropriate evidence of performance, such as acceptance of the completed service under the contract.

Where several advance invoices together cover the whole price, Article 106f(4) requires the last one to reference the earlier invoices. Do not remove the earlier documents just because the order has now been paid in full.

If the business issues an additional settlement document with a zero balance, it must correctly account for amounts already invoiced. It must not generate another sale or a second VAT charge on the same event. Agree on the presentation with your accountant and customer.

How should the invoices be connected in KSeF?

KSeF provides invoice types for advances and settlements, including ZAL and ROZ. Selecting a label in a form does not establish that the amounts, dates or references are correct. The underlying transaction must still match the document.

For the final invoice, Article 106f(3) requires the KSeF identifiers of the earlier structured invoices. Where the earlier invoice was not structured, its invoice number is used. A KSeF number is different from the seller’s own invoice number, so retain both references in the order record.

Keep three events separate: preparing a document, successfully issuing it under the applicable invoicing mode, and receiving payment. A rejected submission or saved draft does not prove acceptance by KSeF. Acceptance by KSeF does not prove payment. Our guide to KSeF for a sp. z o.o. explains company access and responsibilities.

Is an advance already revenue for Polish CIT?

VAT and corporate income tax use different rules. Article 12(4)(1) of the CIT Act excludes specified payments towards supplies or services to be performed in subsequent reporting periods from revenue. It does not mean every payment labelled an advance automatically remains outside taxable revenue.

Your accountant needs the contract, the stage of performance and the payment’s actual character. Send the completion or acceptance information along with the advance invoice. Do not copy the VAT recognition date into CIT records without checking, or treat the entire bank receipt as the final profit on the order.

This distinction matters when the order crosses a reporting period. Money may already be available in the bank while the company still owes the customer the agreed work. A cash balance, a VAT liability and revenue recognition answer different questions about the same transaction.

How do you close an order without counting it twice?

Keep a single reconciliation showing contract value, payments received, invoice and KSeF references, performance date, corrections and the outstanding balance. Before issuing the final invoice, compare it with bank movements and sales records. Check that every advance belongs to the correct order, especially when one customer has several projects underway.

If an advance is refunded or the price changes, assess whether a correction is needed and which period it affects. Do not solve the problem by deleting an issued invoice. Foreign-currency payments also require the appropriate conversion rules; see our guide to foreign-currency invoices in Poland.

Assign someone to notify accounting when the order is completed. Missing completion information can delay reconciliation even when every bank transfer has been recorded. Explore accounting for a Polish limited company with Norman for the company’s wider workflow. Correct dates and amounts still depend on complete information about your transaction.