Will Poland Beat France in the Race to CTC?

Anna Nordén
December 18, 2020

The Polish Ministry of Finance yesterday announced a timeline for its plans to introduce a Continuous Transaction Controls (CTC) scheme, with a roll-out to start in a year’s time from now.

Earlier this year, ministry officials described their intention to introduce an Italian-style clearance e-invoicing system, however since then, not much has been announced in terms of timing, method or impact. With this recent statement, it’s becoming clear that the ambitious timeline remains, only with a slight delay compared to early indications.

So what’s new? By the end of 2021, e-invoicing via a centralized platform will be made available, but still remain optional for companies; from 2023 it will be mandatory for companies to issue all invoices via this CTC system. The aim with the e-invoicing scheme is not just to reduce fraud but also to simplify the invoice issuing process for companies and facilitate business operations.

The Ministry of Finance explains that with the new scheme Poland will be a pioneer of modern solutions for businesses, while drawing on the experience of other countries’ CTC solutions, notably Italy, Spain and Portugal. The plan is to have the system available for businesses a year before the French CTC launch in 2023. The draft law still needs to be submitted to public consultation, and also, to be able to implement a mandatory B2B e-invoicing system, the country needs a derogation from the European Commission to deviate from the VAT Directive.

The implementation of CTCs in Poland gains traction just a couple of months after the new combined JPK_VAT with the declaration entered into force. Considering that the Polish Ministry of Finance as late as in March this year stated that the country could discontinue the SAF-T scheme if the CTC implementation is successful, it is likely that we’re in for a journey with many surprises awaiting.  

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Author

Anna Nordén

As Principal, Regulatory Affairs at Sovos, Anna Nordén pursues government relations and other public affairs work to anticipate new regulatory trends and laws. In tight collaboration with colleagues in both Strategy and Regulatory Analysis and Design, her long practice and expertise are instrumental in guiding both Sovos and legislators as new tax control reforms are rolled out across the globe.
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