Invoice to Employee, Not KSeF, Still Allows Cost Deduction

Companies can still claim business expenses supported by standard invoices issued to employees, even if these documents are not entered into Poland's National e-Invoicing System (KSeF). Tax authorities have confirmed this in recent interpretations, offering clarity on a practice that has become a point of concern since KSeF's implementation.

Before KSeF, employees attending conferences or negotiating with clients would obtain invoices made out to the company, describe them, and submit them to accounting. The purpose and payer of the expense were clear. However, the KSeF system consolidates all "structured" invoices, making it difficult for accountants to attribute them to specific employees, events, or projects.

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Before KSeF, an employee who, for example, went to a conference or negotiated with a contractor, took invoices for the company, described them, and took them to accounting. It was obvious who incurred the expense and for what purpose.

Robert Łuszczyna, a senior manager at EY, highlighted these difficulties, noting that the system creates challenges in assigning invoices. The recent interpretations from tax authorities aim to alleviate these issues, ensuring that legitimate business expenses documented through employee-issued invoices remain deductible.

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In KSeF, all invoices (so-called structured) go into one bag. And accountants have problems assigning them to a given employee, event, project, or transaction.