Does issuing an invoice automatically create a VAT liability? According to Article 108(1) of the VAT Act – in principle, yes. But what happens when an invoice contains an error, such as in the exchange rate, and is corrected to zero in the National e-Invoicing System (KSeF)? The latest position of the National Tax Information (KIS) brings good news for businesses – under certain circumstances, payment of VAT on the original, incorrect invoice may not be required.
VAT liability arises upon invoice issuance
The position issued by the National Tax Information in July 2025 may come as a surprise to many taxpayers. The general rule is that issuing an invoice triggers a VAT liability, regardless of whether the payment from the customer has been received. For example, a landlord of commercial premises issues invoices for rent and is required to pay VAT, even if the tenant has not yet settled previous dues or the current invoice.
The case analysed by KIS
Suppose the following situation occurs: Company A, based in Gdynia, provides ongoing HR and payroll outsourcing services to Company B, based in Zakopane. The settlement is made on a flat-rate basis – EUR 500 per month of service. The VAT amount is calculated in PLN based on the applicable exchange rate.
Company A issues structured invoices, i.e., those submitted via the National e-Invoicing System (KSeF).
However, a technical issue occurred – Company A’s accounting system used an incorrect exchange rate when converting the flat-rate amount. As a result, an invoice with an incorrectly calculated VAT amount was sent to KSeF. The system then automatically “corrected” the error by issuing a zero-value correction invoice, followed by a new, correct invoice using the accurate exchange rate and showing the proper VAT amount. All three documents – the original invoice, the zero correction, and the corrected invoice – were registered in KSeF.
This leads to a key question: Does the mere presence of the original, incorrect invoice in KSeF create a VAT liability under Article 108(1) of the VAT Act, even though it was immediately corrected?
VAT payable only on the actual transaction value
When submitting an application for an individual tax ruling in a similar case, we took the position that this method of correcting VAT invoices – i.e., first issuing a zero correction, then a correct invoice – should not create a VAT liability based on the original invoice.
Our interpretation of the tax law once again proved to be correct.
The tax authority confirmed this position, stating:
In situations (…) where a transaction documented by an invoice issued to a customer was entered into circulation but was not carried out, the taxpayer has the right to issue a correction invoice reducing the value to zero.
Furthermore, the Director of KIS rightly emphasized that Article 108(1) of the VAT Act serves mainly a preventive function, aiming to eliminate so-called “empty invoices” from circulation. However, if an invoice documents a genuine taxable business transaction, and a subsequent correction to zero is followed by a properly issued invoice, VAT is not due on the original document. Instead, VAT should be paid based on the corrected invoice – the one reflecting the actual transaction value and correct VAT calculation.
It is important to note that starting in 2026, the use of the National e-Invoicing System (KSeF) will become mandatory for all VAT taxpayers. This means that any incorrectly issued documents will be immediately visible in the system and recorded. Paradoxically, this may facilitate business operations: thanks to the tight linkage between the original invoice, the zero correction, and the final corrected version, tax authorities will have full visibility over the entire process, reducing the risk of disputes.
Our many years of experience in tax advisory allow us to support clients in the correct interpretation and application of tax regulations. Do not hesitate to contact us.
