Poland’s VAT Gap Rises Amid Delayed e-Invoicing System and Increasing Tax Fraud

• Polish tax administration took actions against VAT fraud and aimed to increase tax collection efficiency.
• The introduction of the National e-Invoice System (KSeF) was initially mandatory from July 2024 but has been postponed to February 2026.
• The VAT gap in Poland, the difference between expected and actual VAT revenues, increased from 2.6% in 2021 to 15.8% in 2023.
• The rise in the VAT gap may be partly due to tax preferences in 2023, but the trend is concerning.
• VAT accounts for between 40% and 50% of the state budget’s revenue, so an increase in the VAT gap means billions of zlotys missing from the budget.
• The postponement of KSeF implementation means an additional 3 billion zlotys will be missing from the budget in 2024 and 2025.
• The Eurofisc report shows that the number and value of VAT frauds in the European Union are increasing despite measures to tighten controls.
• In 2023, 3,492 entities were identified as committing VAT fraud, compared to 2,907 in 2022.
• The number of cases involving “missing traders” increased from 1,953 in 2022 to 2,296 in 2023.

Source: crido.pl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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