Invoicing EU Clients: np I vs np II, VIES, and Reverse Charge in KSeF
Invoicing EU clients under KSeF requires the right np rate, a valid VIES number, and a reverse charge annotation. Get any of these wrong and you either charge VAT you should not or fail to charge VAT you must.
Invoicing EU Clients: np I vs np II, VIES, and Reverse Charge in KSeF
Invoicing EU clients from Poland means applying the reverse charge mechanism. The invoice shows no VAT. The buyer self-accounts for VAT in their country. Getting this right in KSeF requires three things: the correct "np" rate code, a valid VIES number, and a reverse charge annotation.
np I vs np II
FA(3) splits the old "np" (nie podlega / not subject to VAT) rate into two codes:
| Code | Meaning | When to use |
|---|---|---|
| np I | Not subject to VAT domestically | Services outside the scope of Polish VAT (e.g., reverse charge to EU B2B) |
| np II | Not subject to VAT due to exemption | Exempt services (e.g., medical, financial, insurance) |
For reverse charge invoices to EU B2B clients, use np I. Using np II is a mis-marking that breaks JPK_V7 mapping and can trigger a tax office query.
VIES Verification
Before issuing a reverse charge invoice to an EU client, verify their VAT ID in VIES (VAT Information Exchange System). The VIES check confirms the buyer's VAT number is valid and active in their member state's registry.
If the buyer's VAT ID is not in VIES:
- You cannot apply reverse charge
- You must charge 23% Polish VAT
- The invoice is a standard domestic-sale invoice with VAT
If the buyer's VAT ID is in VIES:
- Apply reverse charge (np I rate)
- Add the annotation "reverse charge" or "odwrotne obciążenie"
- Include the buyer's VAT ID on the invoice
VIES status can change. A buyer who was valid last month may have deregistered. Check VIES on the day you issue the invoice, not the day you signed the contract.
FA(3) Fields for EU Services
| Field | Content |
|---|---|
| Buyer NIP/VAT ID | Buyer's EU VAT number with country prefix (e.g., DE123456789) |
| Rate | np I |
| Annotation | "reverse charge" or "odwrotne obciążenie" |
Adnotacje | P_18 marker for reverse charge |
RodzajFaktury | Standard |
Scenario: IT Freelancer Invoicing a German Client
A Polish IT freelancer issues a 5,000 EUR invoice to a German GmbH for consulting services.
- VIES check: The freelancer verifies DE123456789 on the European Commission's VIES portal. Valid.
- Rate: np I (reverse charge).
- Annotation: "reverse charge" on the invoice.
- VAT: None. The German GmbH self-accounts for German VAT.
- Currency: EUR with NBP rate for PLN VAT reporting (zero in this case, but the rate is still recorded for reference).
- KSeF submission: The invoice goes through KSeF with np I rate and the reverse charge annotation.
If the VIES check fails (the GmbH's VAT ID is not registered), the freelancer must charge 23% Polish VAT. The invoice becomes a standard VAT invoice, not a reverse charge invoice. The German client can potentially reclaim the Polish VAT, but the process is more complex and the freelancer's cash flow takes the hit.
Common Mistakes
Not checking VIES on issue date. A VIES number that was valid at contract signing may have expired. Check on the day you issue.
Using np II instead of np I. The codes look similar but map to different JPK_V7 boxes. The wrong code triggers a mismatch in the tax office's automated checks.
Missing the reverse charge annotation. Without "reverse charge" or "odwrotne obciążenie" on the invoice, the buyer's tax authority may not recognise the reverse charge mechanism. The annotation is a formal requirement, not a courtesy.
Charging Polish VAT when reverse charge applies. If you charge 23% VAT on a reverse charge invoice, the buyer faces double taxation: your Polish VAT plus their self-accounted VAT. Correcting this requires a korekta.
This material is information of a general nature and does not constitute legal or tax advice. For a specific situation, verify the current rules or consult a qualified adviser.