VAT on the invoice: rates, exemption, reverse charge, split payment and currencies

On each invoice line you choose the VAT rate. From the rate, the client's country and type and your VAT status, Norman works out how the invoice is described in KSeF and in the JPK_V7.

Rates

Norman offers the Polish rates 23%, 8%, 5% and 0%. There are no separate "zw" or "np" options: on a line at 0% you choose a note, and from it Norman marks the sale in KSeF as exempt, not taxed in Poland, an export or an intra-Community supply.

The note at 0%

When a line is at 0%, the Zero-VAT note field appears. You can choose:

• an exempt sale: exemption by turnover or by type of activity, with its legal basis (see below),
• a service for a business in another country: Reverse charge (odwrotne obciążenie). Place of supply outside Poland under art. 28b ustawy o VAT (Polish VAT Act).
• another service taxed outside Poland: Not subject to Polish VAT: the place of supply is outside Poland.
• goods for a business in another EU country (needs the buyer's EU VAT number): Intra-Community supply of goods, 0% VAT under art. 42 ust. 1 ustawy o VAT (Polish VAT Act).
• goods leaving the EU: Export of goods, 0% VAT under art. 41 ust. 4 ustawy o VAT (Polish VAT Act).
• your own text: Custom note.

For services to a business whose country is the place of supply, Norman adds the words "odwrotne obciążenie" to the invoice (art. 106e ust. 1 pkt 18 of the VAT act). Norman does not let you issue an invoice at 0% to a consumer in another EU country: charge Polish VAT on that line.

VAT exemption and its legal basis

An invoice for an exempt sale must name the provision under which the exemption applies (art. 106e ust. 1 pkt 19 of the VAT act). After choosing the exemption note, choose the Legal basis of the exemption:

• Art. 113 ust. 1: small business under the turnover limit: sales up to PLN 240,000 in the previous year,
• Art. 113 ust. 9: small business that started this year: the limit is prorated to the period of activity,
• Art. 43 ust. 1: exempt kind of sale: also choose the Point of art. 43 ust. 1, without which the invoice cannot be issued.

A business exempt by turnover gets art. 113 ust. 9 by default in the year it starts, and art. 113 ust. 1 after that. The basis goes on the invoice as Legal basis of the VAT exemption and into KSeF.

Norman warns you when an exempt business charges VAT on an invoice, and when an active VAT payer picks a small-business exemption note. If your status has changed, change it in the settings: see Tax settings.

Split payment (MPP)

Below the invoice lines you can tick Split payment. The invoice then carries the words "mechanizm podzielonej płatności", and KSeF gets the matching flag.

These words are required on an invoice whose gross amount exceeds PLN 15,000 and which covers goods or services listed in annex 15 to the VAT act (art. 106e ust. 1 pkt 18a and art. 108a ust. 1a of the VAT act). Norman does not check this itself: tick the box when the obligation applies to you.

GTU codes

On a line you can choose a GTU code. The code goes into the JPK_V7 for that sale.

Invoices in another currency

You can choose a currency other than the złoty. On an invoice in another currency the VAT amounts are also stated in złoty (art. 106e ust. 11 of the VAT act), at the NBP average rate of the last business day before the tax point (art. 31a ust. 1 of the VAT act).

Norman takes this rate itself: from the last business day before the date of the supply or service, or before the issue date if the invoice was issued earlier. The invoice shows a line with the NBP average rate and its date, and the VAT in PLN. If NBP has not published the rate yet, Norman sends the invoice to KSeF once the rate is available.

Norman uses the same rate in the JPK_V7. For exchange differences on payment, see The KPiR, the revenue register and exchange differences.

What Norman does not do yet

• It does not suggest MPP from the amount and annex 15.
• It does not handle domestic reverse charge on sales.
• It does not fill in the KSeF fields for an exemption based on the VAT Directive or another basis (P_19B, P_19C): it names the provision of the VAT act.
• In the mobile app you cannot choose the exemption basis, MPP or a GTU code: issue such an invoice in the web app.

If you are not sure which rate or exemption basis applies, ask your accountant.