Is it possible to invoice in foreign currency at KSeF in SAP?
Payments in foreign currency are an everyday occurrence for many companies. This applies to both purchase and sales invoices. Does the National System of e-Invoices therefore make it possible to issue invoices in foreign currencies?
Procedure for issuing invoices in foreign currency in the KSeF system
The obligatory elements of an invoice are set out in Article 106e(1) of the VAT Act. One of the mandatory items is the net sales value. But the Act does not impose that this must be a value expressed in PLN. Therefore, there are no legal obstacles to issuing invoices in foreign currency even for Polish contractors.
The situation with VAT is different. Article 106e(11) of the VAT Act indicates that the amount of VAT must be stated in PLN. Fortunately, invoices to KSeF can also be entered in foreign currencies. In this case, the values shown on the invoice relating to selling prices, as well as the total value of the invoice, will be in foreign currency. However, in accordance with the aforementioned provision, the amount of tax shown in field P_14_xW will be converted into PLN.
On such an invoice, it must be indicated in which currency it was issued, by filling in the field CodeValue. For the conversion of VAT into zlotys, it is necessary to fill in the field KursWaluty or, alternatively, the field KursWalutyZ . The latter field is applicable when converting exchange rates in accordance with Article 31 of the VAT Act. In both of these fields, values must be entered to 6 decimal places.
Extra time to send an invoice in foreign currency
With invoices in foreign currencies, the date of issue of the invoice is very important. If it is identical to the date of sale, the conversion of the value of the invoice from foreign currency to zloty is made using the exchange rate from the day before the tax liability arose. The average exchange rate of the National Bank of Poland or the exchange rate published by the European Central Bank can be used.
In the case of the average exchange rate of the National Bank of Poland, the VAT Act specifies in Article 31a(1) that it should be the exchange rate on the last business day preceding the day on which the tax obligation arose. On the other hand, if the ECB rate is used, it is the exchange rate published on the last day before the date on which the tax obligation arises.
Because of the need to apply the conversion at the relevant rate, the legislator has in this case extended by one day the deadline for sending the structured invoice to KSeF. The foreign currency exchange rate should be from the day before the date indicated in field P_1 of the invoice. This field specifies the date of issue of the invoice. Please note that the P_1 field may differ from the DateInvoice field, which is only of a technical nature, indicating when the invoice was entered into the system.
The National e-Invoicing System and the contractual rate
The taxpayer, when concluding agreements with his contractors, may specify in them the contractual rate at which values expressed in foreign currencies will be converted into zlotys. In this case, Article 31a of the VAT Act will not apply. The rate from the contract between the parties to the transaction will be used to convert such an invoice into zlotys. This rate will also apply to the calculation of the VAT due.
If the taxpayer decides to use the conversion of invoices according to the contractual exchange rate, he must fill in the fields CurrencyContractual and Exchange Rate Contractual. The latter should be filled in to six decimal places, if such precision has been specified. In the CurrencyUnderContract field, the three-letter currency code in accordance with the ISO-4217 standard should be provided, but please note that the Polish currency, i.e. PLN, cannot be entered in this field.
If you still have any doubts as to how the KSeF system works, feel free to call us and we will talk to you and explain everything to you.
