The obligation to issue invoices via the National e-Invoicing System (KSeF) has raised numerous doubts regarding the requirement to invoice certain types of transactions. Interpretation issues have also arisen among individuals renting out real estate.
This is due to the fact that, under the provisions of the VAT Act, a person renting out real estate may be classified as a VAT taxpayer, even if they are not formally registered as conducting a business activity.
In this article, we aim to clarify under which circumstances a person renting out real estate is required to issue invoices through KSeF.
Private rental
Although private rental is performed outside of formal business activity, pursuant to Article 15(2) of the VAT Act, it is considered an economic activity. This is because economic activity is defined as any use of assets for income-generating purposes carried out on a continuous basis.
Accordingly, the rental of real estate, as a repetitive and remunerated activity involving the use of assets, meets the statutory definition of economic activity.
Invoice for private rental – proper documentation
Where a property is rented to an individual who does not conduct business activity, there is no obligation to issue an invoice through KSeF. However, if the tenant requests an invoice, the landlord is required to issue one.
Such an invoice may be issued outside KSeF, as there is no obligation to issue structured invoices in B2C (business-to-consumer) transactions.
If the tenant is a business entity, the landlord is required to issue an invoice via KSeF.
Where the total value of all invoices issued by the landlord does not exceed PLN 10,000 gross per month, invoices may be issued outside KSeF until the end of 2026. Upon exceeding this threshold, or at the latest from 1 January 2027, each invoice issued to a business entity must be issued through KSeF.
Requirement to hold a Tax Identification Number (NIP)
If the landlord is required to issue invoices through KSeF, they must use a Tax Identification Number (NIP). If they do not have one, they will be required to apply to the tax authorities for its issuance.
Summary
In the case of real estate rental, it is important to assess already now whether the obligation to issue invoices through KSeF and to hold a NIP will apply.
It should be noted that real estate rental constitutes a supply of services within the meaning of the VAT Act.
As a result, individuals renting out property under private rental arrangements may be required to use KSeF, in particular when renting to business entities.